NEW YORK, November 11, 2024 – Accenture has published its fourth annual “Destination Net Zero” report and it makes a troubling observation about the corporate climate action. Although many have pledged to do so, only 16% of the world’s largest companies are on track to achieve net zero emissions by 2050, whereas emissions due to the usage of AI technologies may increase considerably by ten times by 2030.
“A majority of the world’s largest companies are now cutting their emissions even as the size of their operations and revenues grow. While this is a significant milestone, to get to net zero by 2050 all of us need to move faster,” stated Stephanie Jamison, global resources industry practice lead at Accenture.
The analysis of 2,000 largest global companies shows that while 52% have reduced emissions since the Paris Agreement, net zero target-setting has stalled at 37%.
“The recent Draghi report highlights the need for Europe to marry decarbonization with competitiveness,” noted Mauro Macchi, CEO of Accenture, EMEA.
“It’s therefore encouraging to see businesses across the region taking the lead both in setting ambitious net-zero targets and using new technologies such as AI to reduce carbon emissions. This will help boost growth and resilience as regulations such as the CSRD come into force.”
The report also suggests that AI’s carbon footprint, currently estimated at 68 million tons CO2e, will rise to 718 million tons CO2e by 2030 in the absence of any major technological breakthrough. However, 65% of the leaders interviewed are optimistic that AI will help cut down on emissions in the long run proving it is a viable technology to solve the problem of emissions when properly implemented.
European businesses are the most active in climate action as 48% have implemented strategies for complete decarbonization and 20% have adopted AI to manage emissions, thus leading other regions towards sustainable engagements.
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