The global energy transition appears to be slowing due to economic volatility, geopolitical tensions, talent shortages, infrastructure constraints, and technological shifts.1 While this has changed the momentum of the energy transition, many organisations are still prioritising emissions reductions to meet set targets and achieve cost efficiencies.
Our second annual survey highlights the persistent barriers organisations face during the transition. It also offers a blueprint based on what leading organisations— those on track to meet targets—are doing to successfully reduce their emissions and create fertile ground for cost efficiencies.
Becoming a top performer requires the right mix of talent, processes, technology and objectives as well the culture to create sustained impact. The blueprint we outline hinges on involving and empowering teams, investing in the right tools and building continuous improvement from the ground up so lasting change is embedded to accelerate emissions reduction.
Surveyed organisations were asked about the challenges they face in their approach to emissions reduction. Their responses were grouped into the following five categories:*
*% of respondents who raised the following as major challenges
Irregular updates, little transparency over progress, and an inability to cascade challenges down the organisation (e.g., communication breakdowns between remote sites and headquarters over strategic impacts on operations).
What respondents want to see: Clear and consistent communication on goals (e.g., better internal messaging, transparent emissions reporting, broader awareness campaigns).
Limited alignment between employee KPIs and corporate objectives, and a lack of incentives to align employee goals with corporate sustainability targets.
What respondents want to see: Incentives to drive initiatives and reduce their own emissions (e.g., individual sustainability KPIs, public transportation subsidies, carbon offset reward programmes).
Slow rate of technological investment and adoption, poor integration of sustainability expertise into operations.
What respondents want to see: Investment in sustainable technologies to reduce and track emissions (e.g., renewable energy generation), embedded operational expertise to accelerate technology adoption, and increased recognition of longer term financial and operational benefits.
Lack of a clear strategic plan or accountability from top management to drive positive cultural shifts or firm commitments to ensure sustainability efforts remain a priority.
What respondents want to see: Actionable emissions reduction plans with financial commitments, specific targets, and allocated resources.
Only 34% of respondents had targets covering upstream and downstream Scope 3 emissions, with gaps reported around measuring and addressing Scope 3 emissions due to supply chain complexities, data accessibility, and diverse reporting standards.
What respondents want to see: More transparency in the supply chain, higher standards for digital maturity, and better standardisation of data collection and reporting.
These leading organisations are moving faster due to seven organisational success factors accelerating their emissions reduction. While most company strategies include elements of these success factors, leading organisations are better at operationalising all of them to move faster towards their goals. Articulating what leading organisations are focusing on and doing differently helps create a blueprint for success that can be emulated by all organisations.
Leading organisations are between 1.7 and 2.5 times more likely to have...*
Encourage their employees to contribute improvement initiatives
*Adjust systems and processes to support achieving emissions reduction
Put in place productive, recurring review meetings
Translate targets into tangible cascaded objectives
Have clear, visible and complete process in place to manage initiatives
Adjust the way they operate day-to-day to support emissions reduction targets
Are using the right data and tools to support meeting their objectives
*Leading organisations represent the 20% of survey respondents who believe their organisation is on track to meeting their emission reduction targets
Respondents all indicated their teams are eager to engage in initiatives that reduce emissions. To ensure success factors lead to lasting impact, this lever needs to be pulled so people’s desire for further participation can be met and emissions reduction plans accelerated. This requires a cultural shift towards continuous improvement, so everyone is onboard and working towards the same goal: reducing emissions and creating costs efficiencies without negatively impacting wider business objectives.
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The authors would like to thank Russell Varty for his contributions to this article.
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