Towards net zero

Net zero carbon emissions in each sector

More and more companies, investors and public organisations are committing to net zero to combat climate change. To achieve this ambition, they are opting for a more sustainable strategy, resulting in a transformation of, for instance, the business model, the value chain and the purchase and sale of business units. Heading towards net zero also requires adjustments to systems and financial processes to measure non-financial KPIs, transparent reporting on sustainability targets and a cultural shift to enable the transformation. What are the highest priority steps for your organisation when heading towards net zero?

Transformation of all sectors

To limit global warming, the United Nations climate agreements targeted a fifty percent reduction in global carbon emissions by 2030 with net zero being achieved by 2050. Those goals will be within reach only if virtually all sectors of the global economy transform. The net zero ambition contributes to several Sustainable Development Goals (SDGs). What impact does the net zero ambition have on your organisation?

PwC Net Zero by 2030

Like our clients, we need to build trust with our stakeholders and deliver sustained outcomes - and tackling our climate impact is crucial to both. We have therefore committed to Net Zero by 2030. The Science Based Targets initiative (SBTi) validated PwC’s targets to reduce greenhouse gas emissions by 50% in absolute terms from 2019 levels by 2030 in line with a 1.5 degree scenario.

With this approach, which aligns to SBTi’s highest ambition level, PwC commits to decarbonising the way it operates and decoupling its business growth from emissions.

Net zero goes beyond carbon neutrality

Carbon emissions are being reduced to zero in three scopes. Scope 1 involves the direct emissions from the organisation's activities, such as the production process. Scope 2 involves the indirect emission released during the production of procured energy. Scope 3 involves the indirect emission in the value chain, both at suppliers and customers, e.g. production and transport of raw materials, staff commuting and waste processing.
The emission reduction target is based on the latest insights from climate science, i.e. the Science Based Target (SBT): what reduction is needed to limit global warming to 1.5°C?
Any residual emissions are offset by measures that remove carbon from the atmosphere, such as reforestation, as defined by the United Nations Intergovernmental Panel on Climate Change (IPCC).
The emissions are reported in detail.
Clear internal and external policies are needed to achieve the net zero ambition.

Net zero for sustainable growth

The climate targets have a direct impact on the core activities of certain sectors. Existing and future legislation requires many companies to make drastic changes. However, many organisations are committing themselves independently to net zero as a driver for innovation and sustainable growth. Social pressure is becoming palpable everywhere: shareholders, employees, customers and citizens are demanding effective ESG policy (environmental, social & governance), including a specific strategy to reduce emissions.

Your subquestions heading towards net zero

PwC supports organisations in various sectors throughout the entire process of strategy, transformation and reporting. We also assist in answering subquestions for your specific situation to arrive at net zero, such as:

How do you determine your sustainability ambition and what is the competition doing?
What specific steps will result from your net zero ambition?
What system can you use to measure and report your sustainability goals?
What data do you need to drive the transformation to net zero?
What are the implications of the European rules regarding EU Taxonomy, the Non-Financial Reporting Directive (NFRD) and the Transitional Common Auction Platform (TCAP)?
What impact do fiscal measures like the carbon tax and subsidies such as SDE++ have?
How can you ensure that your net zero ambition extends to the entire value chain?
How do you ensure your organisational culture contributes to your sustainability strategy?
What steps can you take towards a circular business model?
How can you include ESG factors in corporate acquisitions and portfolio management?
What requirements will financial institutions impose on you with regard to sustainability?

We assist you in heading towards net zero

We support organisations in all types of sectors in facilitating the transition to net zero. This starts with identifying climate risks and opportunities, and the implications for the organisational strategy. We then collaborate with you on implementing the organisational transformation. We help with compliance, transparent reporting and governance and we provide accountability assurance.