Some 90% of companies are taking action on climate action, however just one in eight (12%) have the right foundations in place to turn these efforts into measurable business value, a new report from South Pole has found.
According to South Pole‘s 2026 Net Zero Report, which surveyed 600 senior business decision-makers from across Europe and the United States, 43% of firms have an approved climate strategy in place, with implementation ‘well under way’.
In addition, around a quarter (23%) said that between 75% and 100% of their climate-related business cases are approved by their CFO or investment committee, while 95% report barriers to capturing business value from climate action, with the majority citing ‘siloed responsibility’.
‘Advanced’ approach
The 12% of respondents deriving business value from climate action, described by South Pole as an ‘advanced’ group, meet four key criteria: all have a formal strategy under implementation; incorporate both value creation and risk protection into climate plans; integrate or quantify climate risk in financial asset valuation or decision-making; and have dedicated capital or operating budgets for the climate transition.
The remaining 88%, which did not meet all four criteria, are defined as an ‘aspiring’ group.
Driving business value
“Although companies have climate initiatives underway, they are struggling to deliver value, such as turning that activity into funded, delivered decarbonisation and business value across their operations and value chain,” commented Dara Olufon, global head of advisory at South Pole.
“Companies that have our foundational building blocks in place are approximately twice as likely to report business benefits such as reduced costs, improved operating efficiency, and improved access to finance. However, this is only around 1 in 10 companies. It’s time for leaders to establish these building blocks and operationalise our four suggested actions in order to close this value delivery gap.”
Other findings from the report include that 91% of ‘advanced’ firms are more likely to report improving operational efficiency or reducing costs, while a similar percentage (91%) are also more likely to report improving access to finance or financing terms.
Elsewhere, three quarters (77%) are more likely to report winning new customers, contracts or tenders, and 76% are more likely to report entering new markets or industry segments.
South Pole recommends that companies focused on closing what it calls the ‘value delivery gap’ should concentrate on four areas: identifying and prioritising climate interventions according to emissions impact, business value, economics, feasibility and risk; developing fundable plans with executive ownership and CFO sign-off; embedding delivery across business functions rather than leaving it to sustainability teams; and measuring both emissions and business value from the outset. Read more here.
