PwC’s Third Annual State of Decarbonization Report Highlights the Strengthening Business Case for Climate Action

New insights from GeSI member PwC show how companies are moving from climate ambition to disciplined execution, linking decarbonization with resilience, growth and measurable business value. 

GeSI is pleased to highlight the release of PwC’s Third Annual State of Decarbonization Report, which provides timely insights into how companies are advancing climate action in a more complex and demanding business environment. 

The report finds that corporate decarbonization efforts among disclosing companies have remained more resilient than many headlines suggest. According to PwC, 82% of companies held steady or accelerated the timeline for achieving their climate ambitions, while more companies increased their climate ambitions than decreased them. 

From ambition to disciplined execution 

A central message of the report is that decarbonization is entering a more practical and financially disciplined phase. Sustainability is no longer being treated only as a reputational commitment or a cost-efficiency exercise. Leading companies are increasingly linking climate action to capital allocation, energy resilience, supply chain visibility, product strategy and long-term competitiveness. 

PwC identifies several areas where this shift is becoming visible. Companies are moving from broad ambition to more disciplined execution. Energy volatility is making efficiency and resilience more strategically important. Supply chain emissions remain a major challenge, particularly where companies lack visibility beyond tier-one suppliers. Product sustainability is also becoming an increasingly important lever for Scope 3 progress, as companies integrate sustainability considerations across the product life cycle. 

The role of digital innovation and AI 

The report also points to the growing role of artificial intelligence in decarbonization. While 60% of companies report using AI for decarbonization, fewer than 1% currently report measurable emissions impact. This gap highlights both the opportunity and the implementation challenge: digital technologies and AI must be embedded into business systems in ways that deliver measurable sustainability outcomes. 

Relevance to GeSI’s Digital with Purpose agenda 

These findings strongly resonate with GeSI’s mission to advance digitally enabled sustainable development. Through the Digital with Purpose movement, GeSI works with members and partners to demonstrate how digital innovation can support climate action, strengthen resilience, improve resource efficiency and create measurable value for business and society. 

PwC’s latest report adds an important contribution to this agenda. It shows that the business case for decarbonization is not weakening. Instead, it is becoming more practical, more evidence-based and more closely connected to business performance.