A report by Accenture has projected 15-year gap between the energy sector’s targets and its progress, meaning net zero realistically won’t be achieved until “well after” 2050.
Accenture’s latest report, “Reaching Net Zero by 2050”, analysed data from more than a thousand listed companies across Europe’s major stock indexes, finding that almost one third of these had an aim to reach net zero by 2050, but only 5% is on track to meet targets.
The report also found that only 35% of oil, gas and chemical companies have set net zero commitments, aiming to achieve these, on average, by 2041.
On the utilities front, almost half (48%) of utility companies in Europe have committed to net zero and are on track to achieve this by 2044, with the chance that some may reach their goal ahead of schedule.
Even if European energy and utilities companies doubled their current pace of emissions reduction by 2030 and then doubled it again by 2040, Accenture predicts that just 42% of all the companies in the sample, and across sectors would reach their own net zero targets, and 83% before 2050.
The report stated that “more radical acceleration will be needed” for the five sectors that represent 42% of greenhouse gas emissions – automotive, construction, manufacturing, oil and gas, and transportation and storage – to reach net zero by mid-century.
Accenture Europe CEO Jean-Marc Ollagnier (pictured) said: “The European business community is more engaged than ever in the race to zero, with the number of companies publicly setting goals having grown over the last two years.
“However, net zero by 2050 – or even sooner – will be feasible only with swift, decisive action in this decade. Our findings show that it is possible, but only if these businesses act now.”
Solutions differ by sector, and all have different starting points, opportunities and challenges, Ollagnier said.
“In some industries, the required technologies are available and will need to be scaled at speed. In others, they will have to be invented.
“However, getting there will require all businesses to make reinvention the norm, driven by technological innovation, collaboration, new business models and supportive regulation.”