Engie Impact’s latest 2023 Net Zero Report provides insights into companies on how they can improve and accelerate their decarbonisation strategies.
Companies around the world looking to accelerate decarbonization efforts in pursuit of net zero goals must maintain a long-term focus, increase operational accountability, and collaborate with their supply chains to reduce emissions.
That’s the key finding from a 2023 Net Zero report by sustainability giant and engineering consultancy Engie Impact, titled Six Actions to Accelerate Decarbonization, which aims to provide companies with advice on how to overcome some of the key challenges holding back net zero strategies.
The study was conducted by surveying more than 500 CEOs from some of the largest companies in the world, many of which employ more than 10,000 people.
Further investment and strong leadership
The survey found that nearly two-thirds of those surveyed said they had now made some form of public commitment that had adopted a goal to reduce carbon emissions within their organisation, but while this increased percentage represented progress in previous years, only 12% rated sustainability efforts as “Very successful” and 75% say they have already achieved “quick wins” with their decarbonisation plan.
As such, the report states that achieving the company’s goals will require “further investment, strong leadership and sustained effort and commitment.”
“Our research is revealing signs of progress from companies around the world, but the process needs to be accelerated, and we have learned that there are challenges along the way that many leaders do not anticipate at the start of this journey,” said Matthias Lillifry, CEO of Engie Impact. We report on the most common barriers to overcome and strategic actions to remove those barriers and accelerate decarbonization.”
While the report acknowledged that there is no “one right approach to building decarbonization capacity,” the survey found that organizations that empowered local or functional decision-makers to drive emissions reduction efforts helped them maximize the return on their decarbonization investments.
Innovative financing models to provide sustainability projects
The report also found a mismatch between the expectations of senior executives and those responsible for implementing decarbonization initiatives, which it warned could “impede future progress.” Organizations that realigned their implementation vision to be more in line with their operations were found to be more successful in meeting Climate goals.
Other areas that CEOs could improve included ensuring they use innovative financing models to deliver sustainability projects, adopting internal carbon pricing mechanisms, and investing in improved carbon data. The report also advises that large companies should share incentives with their supply chain organizations and ensure they are held accountable for the success of their decarbonization strategies.
Ultimately, the report argues, emissions targets should be treated as seriously as financial targets by executives across the company.