Drawing from interviews with more than 30 executives across 10 sectors, the report identifies three core dimensions that firms must address: setting credible vision and commitments, strategically positioning their business models, and building critical capabilities. These dimensions are deeply interconnected and shaped by leadership choices, market dynamics, regulatory pressures, and the evolving science of climate action. Notably, there is no single path to net zero, success depends on each firm鈥檚 unique objectives, current positioning, and ability to navigate tensions between ambition and practical action.
The research reveals that achieving net zero fundamentally alters corporate strategy and long-term planning. Firms that have advanced furthest demonstrate an ability to integrate climate targets into their core business models rather than treating them as peripheral projects. The report highlights growing recognition that Scope 3 emissions, those generated across the full value chain, represent both the most difficult challenge and the greatest opportunity for innovation and differentiation. Leading firms are developing tools such as carbon calculators and renewable energy solutions to help customers lower their emissions, thereby enhancing stakeholder trust and opening new revenue streams. A key tension persists between setting aspirational goals, which can galvanize innovation but risk accusations of greenwashing if not supported by clear plans, and establishing realistic commitments that may fall short of stakeholder expectations. Firms that strike the right balance, often through science-based targets, position themselves for long-term competitiveness as climate performance becomes a core market driver.
In parallel, firms are recognising that delivering on net-zero ambitions requires the development of new organizational capabilities. Historically, climate initiatives were siloed in sustainability departments, focused on reporting and incremental improvements. Today, they demand whole-of-organization transformation. The report emphasises two critical areas of capability-building: innovation and partnerships. Internally, firms must enhance emissions tracking (particularly for Scope 3), redesign products and processes, align investment decisions with climate goals, and use scenario analysis to navigate an uncertain future. Externally, collaboration with suppliers, customers, and cross-sector alliances is becoming essential. The most successful firms are those that embed climate strategy across all functions, moving beyond compliance to drive business value. The path forward is complex and filled with uncertainty, but the authors stress that waiting for perfect clarity is the riskiest choice, acting now, with credible plans and adaptive learning, is key to building resilience.
Why does this matter? The transition to net zero will reshape every aspect of the economy, and companies that act decisively today will be best positioned to capture emerging opportunities and mitigate future risks. Stakeholders - investors, customers, regulators, and employees - are already demanding credible action. The coming decade is a pivotal window: firms that integrate climate strategy into their core business models, build essential capabilities, and foster strong partnerships will meet rising expectations and unlock new avenues for growth and innovation. As the report underscores, there is both urgency and opportunity: firms should move boldly now, learning from those already leading the way. Those who hesitate risk being left behind in a market where climate performance is becoming a key dimension of competitiveness. The moment for action is now.
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