Race to Zero Progress: Beyond Renewables to Tackle Supply Chains

A new report shows committed firms are cutting emissions, but the next frontier is the supply chain. Discover the tech and strategies driving real progress.

3 days ago

Race to Zero Progress: Beyond Renewables to Tackle Supply Chains

LONDON, UK – December 02, 2025 – In an era marked by economic uncertainty and shifting regulatory landscapes, a cohort of globally recognized companies is demonstrating that meaningful climate action is not only possible but is already delivering measurable results. A new report from climate technology firm DitchCarbon reveals that 3,212 corporate members of the UN-backed Race to Zero (RTZ) campaign collectively reduced their emissions by 51.1 million metric tonnes of CO₂ between 2022 and 2024. This reduction is equivalent to removing the annual emissions from a line of fuel trucks stretching from New York to Los Angeles.

The analysis, titled Scaling the Impact: RTZ Companies' Journey in Corporate Climate Action, suggests that despite widespread challenges, the momentum for corporate decarbonization is holding firm. The findings highlight a maturing approach to sustainability, where leading companies are moving beyond pledges and translating ambition into tangible operational changes.

A Tale of Two Trends

The data paints a picture of steady, albeit uneven, progress. In 2024, nearly 17% of the companies analyzed achieved absolute emissions reductions, a figure that has remained consistent over the past three years. This indicates that a solid core of businesses has successfully embedded decarbonization into their strategic cycles. Furthermore, corporate transparency remains strong, with 55% of RTZ members disclosing their emissions data in 2024, a slight dip from the previous year's high but still a robust figure demonstrating sustained accountability.

However, these positive signals from committed firms exist within a more sobering global context. Broader industry analyses, such as PwC's Net Zero Economy Index, have noted a recent stalling in the overall rate of global carbon intensity reduction. This juxtaposition suggests that while initiatives like the Race to Zero are creating pockets of significant success, the scale and speed of change across the entire global economy must accelerate dramatically to meet the Paris Agreement's 1.5°C target. The progress within the RTZ cohort serves as a powerful proof-of-concept, but also as a call to action for the wider corporate world.

Investor and stakeholder pressure continues to be a major driver. According to recent surveys from Deloitte, a vast majority of C-suite executives have increased sustainability investments, with many seeing a clear path to achieving both business growth and emissions reductions. The leaders in the Race to Zero are proving this dual objective is not just a theory, but a practical reality.

Beyond the Power Plug: The Scope 3 Frontier

For years, renewable energy has been the cornerstone of corporate climate strategy, and the DitchCarbon report reaffirms its impact. Over 43% of Race to Zero companies increased their use of renewable energy, making it the most widely adopted and effective lever for near-term decarbonization. This focus on cleaning up direct operations (Scope 1) and purchased energy (Scope 2) has yielded significant gains, with over a quarter of companies reducing their Scope 1 and 2 intensity.

Yet, this is only part of the story. The report highlights a persistent and much larger challenge: Scope 3 emissions. These are the indirect emissions embedded throughout a company's value chain, from the raw materials sourced by suppliers to the end-of-life disposal of products. For many companies, Scope 3 can account for over 70% of their total carbon footprint. The report found that only 13.4% of companies achieved reductions in their upstream Scope 3 intensity, underscoring the immense complexity of the task.

"Future impact will depend on expanding beyond renewables to engage suppliers, reform procurement practices, and embed circular economy principles," cautions Marc Munier, founder of DitchCarbon, in the report. This statement pinpoints the next great challenge—and opportunity—in corporate climate action. Tackling Scope 3 requires moving from internal optimization to systemic collaboration across entire value networks. The primary hurdles are not technological but logistical and relational, revolving around collecting reliable data from hundreds or thousands of suppliers and motivating them to decarbonize their own operations.

From Pledges to Procurement: Blueprints for Success

While the Scope 3 challenge is daunting, industry leaders are already forging a path forward. The DitchCarbon report spotlights several companies that are demonstrating how to effectively turn supply chain complexity into a competitive advantage.

Apple, for instance, achieved a remarkable 36% reduction in its total upstream emissions between 2022 and 2024, all while maintaining revenue growth. This was not achieved through a single initiative, but a multi-pronged strategy centered on supplier collaboration. Over 100 of its suppliers participated in the company's Supplier Energy Efficiency Program, collectively avoiding 1.7 million tonnes of CO₂e.

Similarly, global infrastructure consulting firm AECOM managed to cut its upstream emissions by approximately 30% while simultaneously increasing its revenue by 20%. AECOM's success was driven by integrating low-carbon criteria directly into its procurement processes and fostering innovation with its suppliers, including pilot projects for critical materials like zero-carbon cement. These case studies prove that addressing Scope 3 emissions is not a drag on performance but a driver of resilience, efficiency, and innovation.

The Technology of Transparency

The sheer complexity of tracking, managing, and reducing Scope 3 emissions has catalyzed a new wave of innovation in climate technology. Companies can no longer rely on spreadsheets and estimations; they require sophisticated platforms to turn vast streams of supplier data into actionable intelligence. This is the market DitchCarbon and its competitors, including major players like Salesforce with its Net Zero Cloud and IBM's Environmental Intelligence Suite, are built to serve.

These enterprise platforms are designed to automate data collection, integrate with existing procurement and ERP software, and use analytics to identify the most impactful areas for reduction. By providing a centralized, auditable system for carbon accounting, they empower companies to move from high-level pledges to granular, data-driven action plans. As DitchCarbon's COO, Alex Rudnicki, states in the report, "Corporate climate action is entering a new phase of strategic maturity." This maturity is built on a foundation of better data and more powerful analytical tools.

The next 18 months are seen as a pivotal window to transform these incremental gains into systemic change. The fusion of corporate commitment, deep supplier collaboration, and enabling technologies is no longer a futuristic vision but the emerging standard for climate leadership. For businesses navigating the path to net zero, the focus is clear: the race will be won or lost in the supply chain.

📝 This article is still being updated

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