At a time when headlines often suggest companies are stepping back from climate commitments, new findings tell a more measured story. According to PwC’s latest State of Decarbonization report, around 82% of companies are maintaining or even accelerating their climate goals, despite ongoing economic and regulatory uncertainty.
This points to a shift in how businesses are approaching decarbonisation. Rather than retreating, many are recalibrating. In some cases that means adjusting timelines or expectations, but not abandoning direction. The focus is moving away from headline commitments and towards what delivery actually looks like in practice.
From targets to implementation
What emerges from the report is a sense that climate action is becoming more embedded within business operations. Around 37% of companies are increasing their ambition, while a smaller proportion are scaling back, often to align targets more closely with what is achievable.
This reflects a growing maturity. Early net zero targets were often set without a full understanding of cost, infrastructure or supply chain complexity. Now, organisations are beginning to build more detailed transition plans, supported by finance teams and integrated into wider business strategy.
The implication is clear. The conversation is shifting from whether companies have targets to how those targets are being delivered.
Supply chains become the next frontier
One of the most significant developments is the growing focus on supply chains. While many companies are making progress on their direct emissions, the picture is more complex when it comes to Scope 3, which includes emissions across the value chain.
Only around 56% of companies are currently on track to meet their Scope 3 targets, compared to stronger progress on operational emissions. This gap highlights a structural challenge. Emissions are often highest outside a company’s direct control, embedded within suppliers, logistics and product use.
Visibility remains a key barrier. Just 18% of companies report that they consistently track emissions beyond their immediate suppliers, limiting their ability to act effectively across the full value chain.
This is where the next phase of decarbonisation is likely to play out. Moving beyond internal operations requires deeper collaboration, better data and a shift in how organisations engage with suppliers.
The business case becomes clearer
Despite the complexity, the report suggests that the business case for decarbonisation is strengthening. Companies are increasingly linking climate action to resilience, cost management and long term competitiveness.
Rather than being treated as a standalone sustainability initiative, decarbonisation is becoming part of core decision making, influencing procurement, investment and product development. This is particularly evident in supply chains, where pressures such as energy volatility and resource constraints are making efficiency and emissions reduction more commercially relevant.
A quieter but more grounded transition
What stands out is not a surge in ambition, but a shift in behaviour. Climate action is becoming quieter, more operational and more closely tied to business fundamentals.
For organisations, this signals a different kind of challenge. The foundations are largely in place, but delivery will depend on execution. That means embedding climate considerations into day-to-day decisions, strengthening supplier relationships and building the systems needed to track and manage emissions at scale. The difference now is that progress is less about setting targets and more about making them work.
Read the full PwC State of Decarbonization Report: pwcs-third-annual-state-of-decarbonization-report.pdf