Skip to content
Search AI Powered

Latest Stories

Decarbonizing heavy industry is key to reaching climate goals, Accenture says

40% of total global CO2 emissions come from steel, metals and mining, cement, chemicals, and freight and logistics.

accenture COP28.jpeg

Decarbonizing the heavy industry sector—including freight and logistics operations—is key to reaching climate goals, as fewer than one in five companies worldwide (18%) are currently on track to reach net zero emissions in their operations by 2050, according to research from Accenture.

Although more than a third (38%) of companies say they cannot make further investments in decarbonization in the current economic environment, Accenture identified a path to breaking the stalemate. Industry leaders could turn the trend around within only three years by reinventing decarbonization strategies that enable growth for energy-intensive, hard-to-abate heavy industry—such as steel, metals and mining, cement, chemicals, and freight and logistics—the operations of which generate 40% of total global CO2 emissions.


Heavy industry reinvention is critical to achieving all global net zero targets—both as the world’s biggest emitters and due to their interdependence with manufacturing, or “light” industry, which includes pulp and paper, aerospace and defense, automotive, industrial equipment, life sciences and consumer goods.

The “Destination net zero” report was released ahead of the 28th UN Climate Change Conference of the Parties (COP28), and analyzes net zero commitments, decarbonization activities, and emissions data for the 2,000 largest companies globally. 

Accenture found some reason for “tempered optimism,” saying that the number of companies that have set targets for net zero has risen to 37%, up from 34% last year. But their actions don’t match those goals—half (49.6%) of the companies that disclose emissions data have presided over increasing emissions since 2016. And one-third (32.5%) are cutting emissions, but on current observable trends are not on track to reach net-zero in their operations by 2050.

“It’s promising to see an increase in public commitments to net zero targets again this year, but the adoption of key decarbonization measures is not uniform, with some companies still unable to master the basics,” Jean-Marc Ollagnier, CEO of Accenture for Europe, Middle East and Africa, said in a release. “Reaching net zero is a unique opportunity for every organization to reinvent themselves and their value chains by aligning business growth with the net zero imperative, despite the many obstacles they must overcome. However, it is not just an enterprise challenge but also an ecosystem one, as there is a need to address the disconnect between supply and demand.”

To identify specific steps in the path forward, the report identified three areas where the economics of decarbonization and a structural misalignment between industries are at the core of what’s constraining progress:

  • Improved access and availability to affordable, low-carbon energy is required: Four out of five (81%) leaders from heavy industry expect to need more than 20 years to have sufficient zero-carbon electricity to decarbonize their industry, with energy providers primarily focused on decarbonizing their own operations.
  • There is a need to bolster confidence in the commercial viability of low-carbon products: 95% of heavy industry leaders expect to need at least 20 years to deliver net zero products or services at or close to price parity with high-carbon alternatives, and just over half (54%) say that manufacturers' future purchasing intentions give them enough confidence to invest in decarbonization.
  • Concerns about managing the costs must be addressed: Two in five (40%) leaders in heavy sectors said they can't afford further investment in decarbonization in the current economic climate, with 63% suggesting their priority decarbonization measures won’t be economically attractive before 2030.

 

 

 

Recent

More Stories

photos of grocery supply chain workers

ReposiTrak and Upshop link platforms to enable food traceability

ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.

The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.

Keep ReadingShow less

Featured

minority woman with charts of business progress

Study: Inclusive procurement can fuel economic growth

Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.

The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.

Keep ReadingShow less
Logistics industry growth slowed in December
Logistics Managers' Index

Logistics industry growth slowed in December

Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.

Keep ReadingShow less
pie chart of business challenges in 2025

DHL: small businesses wary of uncertain times in 2025

As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.

However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).

Keep ReadingShow less
women shopping and checking out at store

Study: Over 15% of all retail returns in 2024 were fraudulent

As retailers enter 2025, they continue struggling to slow the flood of returns fraud, which represented 15.14%--or nearly one-sixth—of all product returns in 2024, according to a report from Appriss Retail and Deloitte.

That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.

Keep ReadingShow less