PwC’s 2025 State of Decarbonization Report: Corporate Sustainability is Here to Stay—Quietly, But Strongly

Key Takeaways

• Corporate Climate Commitments Are Growing: Over 4,000 companies reported climate commitments in 2024, a nine-fold increase from five years ago. 37% of companies are increasing their climate goals.
• Sustainability Is Paying Off: 83% of companies are investing in low-carbon products, with sustainability attributes boosting revenue by 6% to 25%.
• Scope 3 Emissions Present Key Opportunities: While progress is being made on Scope 1 and 2 emissions, companies are increasingly focusing on reducing Scope 3 emissions through supply chain engagement and sustainable products.
• Long-Term Commitment Endures: 84% of companies maintain their climate commitments even through leadership transitions, showing that sustainability is deeply integrated into corporate strategy.

Deep Dive

If you’ve been keeping an eye on the news, it might feel like corporate sustainability is in trouble. Stories about companies walking back their climate commitments seem to be everywhere—fueled by a mix of economic strain, shifting regulations, and political uncertainty. It’s easy to get the impression that businesses are losing their nerve when it comes to climate action.

But here’s the thing, PwC’s 2025 State of Decarbonization Report shows a very different picture. Despite the headlines, businesses across the globe are quietly doubling down on their sustainability goals. Yes, they may not be broadcasting their climate commitments as loudly as before. But behind closed doors, they’re putting in the work—sustainability is still very much a part of the corporate agenda. And it’s not just about checking a box. These companies see climate action as essential for long-term growth, resilience, and a sustainable future.

Here’s the data that tells the real story: Over 4,000 companies reported climate commitments through the CDP in 2024—a nine-fold increase from just five years ago. And while some companies are indeed dialing down their ambitions, 37% are actually ramping up their efforts. Let that sink in: more businesses are setting their sights higher on climate goals than ever before.

It’s not just the big players leading the way, either. Small businesses are getting in on the action too. The median revenue of companies reporting climate commitments has decreased from $3.6 billion in 2020 to just $1.3 billion in 2024. This shows that sustainability isn’t just for the giants—it’s becoming a priority at every level of the corporate ladder.

But it’s not just about talking the talk. A whopping 83% of companies are investing in research and development for low-carbon products and services. And the payoff? Products that feature sustainability attributes can boost revenue by as much as 6% to 25%. That’s not just a nice bonus—it’s a serious business opportunity.

Corporate Sustainability in the Age of Leadership Changes

One of the most interesting takeaways from this report is the resilience of these climate commitments—especially when leadership changes. It turns out that sustainability efforts don’t just hinge on the CEO. PwC found that 84% of companies continue to honor their climate goals even after a CEO departs. That kind of continuity speaks to the fact that climate action is no longer a “nice-to-have”—it’s an integral part of how companies operate, no matter who’s at the helm.

Sure, companies have made impressive strides with Scope 1 and 2 emissions—those directly under their control. But the real heavy lifting is still ahead with Scope 3 emissions, which come from across the entire supply chain. That’s where the opportunity lies.

As larger companies tackle their Scope 3 emissions, they’re increasingly leaning on their suppliers to step up and set their own emissions reduction targets. This creates a ripple effect—a chain reaction where each link in the supply chain helps move the whole network forward. It’s an exciting shift, one that’s already being seen in 2024 with more small companies taking up the mantle of setting their own emissions reduction targets.

What Sets the Leaders Apart?

It’s clear from PwC’s report that while many companies are committed to decarbonization, not all are equally successful in their efforts. The companies that are making real progress are those that have nailed down four key elements:

1. Governance: Sustainability isn’t just a side project. The most successful companies integrate sustainability into their core decision-making and strategy.
2. Funding: These companies aren’t just talking the talk—they’re putting their money where their mouth is, with substantial investments in climate initiatives.
3. Engagement: Collaboration is key. Companies that engage with their suppliers and customers are seeing more success in driving climate action across their value chains.
4. Product Innovation: The real game-changer is creating sustainable products that reduce Scope 3 emissions. These companies aren’t just reducing their own footprint—they’re helping to shape a sustainable future for their entire industry.

These four pillars—strong governance, financial backing, supplier engagement, and sustainable product development—are what separate the leaders from the laggards in the decarbonization race.

Decarbonization as a Competitive Advantage

Sustainability is no longer just about compliance or corporate responsibility. For many companies, it’s a competitive advantage. By 2030, PwC’s report predicts that more than a third of company revenue will come from the climate transition. Those companies that can align their climate commitments with real, tangible actions are poised to reap the rewards—not just in terms of profits, but also in building a brand that resonates with increasingly eco-conscious consumers.

The next few years will likely see the decarbonization journey turn into a defining factor for business success. Companies that effectively navigate the complexities of climate action, from reducing Scope 1 and 2 emissions to addressing the long-overlooked Scope 3, will become industry leaders.

While the media might be quick to pounce on stories of corporate backpedaling, PwC’s report shows that the reality is much more nuanced—and optimistic. Companies are quietly—but steadily—making progress. They’re setting ambitious climate goals, innovating their products, and engaging their entire supply chain in the fight against climate change. The journey won’t be easy, but those who get it right will find themselves better positioned for long-term success.

The true winners of the decarbonization race will be those companies that manage to turn sustainability into something more than a buzzword. It will become a catalyst for innovation, a driver of business resilience, and a ticket to a more sustainable and profitable future.

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