Study reveals how sustainability leaders harness advanced technologies, including AI, IoT and photonics to reach emissions targets

TOKYO: #ClimateChange--A new survey of 500 global enterprises commissioned by NTT Corporation (NTT) found that 68% of companies self-reported they are not on track to meet their net-zero carbon emissions goals. However, further evaluation indicates that as many as 95% of respondents may fall behind on their plans. Conducted in collaboration with global research firm ThoughtLab Group, NTT commissioned the study, Exploring the Paths to Net Zero, to assess the current state of corporate sustainability efforts worldwide.

“While the results of this survey clearly indicate that large companies have more work to do to improve their sustainability practices, it is also cause for optimism,” said Vito Mabrucco, Global Chief Marketing Officer at NTT. “By learning about the processes, innovations and technological implementations of firms that are achieving or exceeding their net-zero goals, companies may improve their own plans to cut emissions while simultaneously developing a collaborative spirit of global corporate sustainability for the betterment of all.”

Key Findings:

• More than two-thirds (68%) of surveyed enterprises self-reported that they are behind schedule on their net-zero targets. But given the steep incline in emission reductions needed to reach net-zero, the actual number could become as high as 95%, according to the latest ThoughtLab analysis commissioned by NTT.
• Companies behind schedule (“followers”) cite several causes, including rising data usage, the growing resource demand of artificial intelligence, balancing net-zero goals with business goals and overlooking shocks like geopolitical disruptions.
• 9% of enterprises (“leaders”) report that they are on target to reach net-zero targets either on schedule or ahead of schedule, despite setting tougher goals for themselves. Leading firms are taking advantage of advanced technologies such as AI, IoT and photonics to reach their emissions goals.

Why Enterprises are Falling Behind

While many companies have set their targeted achievement of net-zero emissions between 2030 and 2050 (with an average target year of 2047), the survey found that the firms so far have reduced their greenhouse gas emissions at a compound average growth rate (CAGR) of 4.2% per year. However, the organizations would need to increase that figure to 11.1% to meet their target-year goals, which many may find challenging.

The analysis revealed three key reasons why many corporations are falling short:

Sustainability Leaders Illuminate Paths Forward

Of the 500 surveyed firms, 44 (9%) are identified as “leaders,” self-reporting on target or ahead of their net-zero goals, accounting for Scope 1, Scope 2 and Scope 3 emissions and having a net-zero target date of before 2050. Survey analysis revealed three categories of tools these leaders are leveraging to meet their targets:

And while leaders in 2023 spent $81.4 million on average to achieve their net-zero goals compared to $60.7 million for followers, they were more effective than followers in offsetting these costs with benefits from their emission reduction programs.

To access content related to the full report, Exploring the Paths to Net Zero, please visit: https://www.global.ntt/net-zero/

For more information about NTT and sustainability, please visit: www.global.ntt/sustainability/

Methodology

ThoughtLab conducted a survey in Q1 2024 commissioned by NTT of 500 executives, C-level and direct reports, from 500 global enterprises with revenues ranging from $500 million to $100 billion across five major industries: automotive and industrial manufacturing; financial services; retail and consumer goods; telecommunications and technology; and healthcare and life sciences. Geographically, 150 respondents participated from Asia Pacific (Australia/New Zealand, Japan, Singapore) 175 respondents participated from Europe (France, Germany, Poland, U.K.) and 175 participated from North America (Canada, Mexico, U.S.).

About NTT

NTT contributes to a sustainable society through the power of innovation. We are a leading global technology company providing services to consumers and businesses as a mobile operator, infrastructure, networks, applications, and consulting provider. Our offerings include digital business consulting, managed application services, workplace and cloud solutions, data center and edge computing, all supported by our deep global industry expertise. We are over $97B in revenue and 330,000 employees, with $3.6B in annual R&D investments. Our operations span across 80+ countries and regions, allowing us to serve clients in over 190 of them. We serve over 75% of Fortune Global 100 companies, thousands of other enterprise and government clients and millions of consumers.

Fonte: Business Wire