Corporate climate reporting declines as investment levels rise
A new report from BCG and CO2 AI reveals that while companies are increasing climate spending, fewer firms are comprehensively tracking their carbon emissions.
The latest edition of the BCG and CO2 AI report indicates that only 7% of large corporations now fully measure Scope 1, 2, and 3 emissions, down from 10% in 2023. The data also reveals a decline in the number of firms setting comprehensive emission reduction targets, suggesting a gap between ambition and rigorous data management.
Despite the decline in reporting, financial commitment remains high. Seven out of ten companies plan to maintain or increase their climate investments over the next five years, with average projected increases of 16%. Research shows that 82% of companies see direct economic benefits from decarbonization, often realized through operational efficiencies and new revenue streams from sustainable product lines.
BCG notes that the most effective organizations differentiate themselves by integrating advanced technologies like generative AI and internal carbon pricing into their operations. The findings, based on input from nearly 2,000 executives, suggest that climate transition is increasingly viewed as a material driver of long-term corporate value.