Key Survey Findings:
- African respondents improved year-on-year comprehensive reporting of Scope 1, 2 and 3 emissions by 97% from 2023 to 2024
- Nearly half of the companies in Africa surveyed are reporting significant financial benefits from decarbonisation
- Just 9% of the nearly 2,000 global companies surveyed, and 7% of African companies said they comprehensively report Scopes 1,2, and 3 emissions
- Companies that use AI to help reduce emissions are 4.5 times more likely to experience significant decarbonisation benefits
- Brazil, India, and China are leading in comprehensive emissions reporting, target setting, and reducing emissions in line with ambitions
A new study by Boston Consulting Group (BCG) and CO2 AI released today (17 September) reveals that companies have made minimal progress on climate issues over the past year and that corporate progress on decarbonisation has slowed globally.
The new “AI’s Carbon Emissions Survey”, detailed in the report Boosting Your Bottom Line Through Decarbonization, was conducted with a total of 1,864 executives surveyed, including 191 from South Africa, Nigeria and Egypt who oversee their company’s emissions measurement, reporting, and reduction initiatives. The respondents represent 16 major industries across 26 countries, and collectively are responsible for approximately 45% of global greenhouse gas emissions. Each organization has at least 1,000 employees and annual revenues ranging from $100 million to more than $20 billion.
“This year’s survey highlights the substantial rewards some companies are reaping from decarbonisation, including significant financial gains, enhanced reputations, and operational efficiencies,” said Hubertus Meinecke, BCG’s global leader of climate and sustainability and a co-author of the study.
“Too few companies are seizing the financial gains offered from decarbonisation,” said Diana Dimitrova, a BCG managing partner, director, and a co-author of the study. “By mastering essential foundational actions like measurement, reporting, target setting, and taking advanced steps toward sustainability, these companies can become more efficient, more profitable, and demonstrate a stronger commitment to a greener future.”
Climate progress stalls, with a few countries leading by example
Among the nearly 2,000 companies surveyed in 2024, only 9% described comprehensive reporting of Scopes 1, 2, and 3 emissions. Additionally, just 16% have set targets across all three scopes,and only 11% have achieved emissions reductions in line with their ambitions. These figures are all lower than those reported by companies in 2023.
Companies in Brazil, India, and China are leading the way in comprehensive emissions reporting, target setting, and achieving emissions reductions in line with their goals.
Seven percent of African executives surveyed confirmed comprehensive reporting of Scope 1, 2 and 3 emissions, representing an increase of 97% compared to 4% of respondents in 2023 when the continent was behind the global average on comprehensive reporting. While other regions reported a decrease in year-on-year comprehensive reporting in 2024, Africa was the only region to report an increase.
Unlocking value by excelling in foundational and advanced climate actions
Foundational actions are the initial steps in a company’s decarbonisation journey and optimising them often leads to decarbonisation excellence and significant value capture.
- Measurement. Companies measuring all three scopes comprehensively are 1.6 times more likely to experience significant decarbonisation benefits.
- Reporting. Companies fully reporting each scope are 1.5 times more likely to experience significant decarbonisation benefits.
- Target setting. Companies setting validated targets for each scope are 1.9 times more likely to experience significant decarbonisation benefits.
Beyond foundational steps, companies can increase emissions reductions and potential rewards through advanced actions. According to the survey, these tech-enabled actions boost accuracy, impact, and value capture.
- AI usage. Companies using AI to reduce emissions are 4.5 times more likely to see significant decarbonisation benefits. AI tools enhance sustainability efforts by automating tasks, freeing teams to focus on strategic goals like cutting emissions and capturing value.
- Product-level emissions. Companies that calculate product-level emissions are four times more likely to experience significant decarbonisation benefits.
- Climate transition plans. Companies that adopt a climate transition plan are 2.9 times more likely to experience significant decarbonisation benefits and 3.3 times more likely to reduce emissions in accordance with a 1.5°C pathway.
“The window for companies to increase ambition and take decisive action to limit global warming to 1.5°C is rapidly narrowing, but AI has the potential to be a game changer, empowering businesses to reduce emissions and make meaningful strides toward mitigating climate change,” said Charlotte Degot, CEO and founder of CO2 AI and a co-author of the report. “Our research shows the need for companies to double down on using AI responsibly to make sure they can deliver their climate goals and bottom-line business targets.”
