PwC Report: Decarbonisation Drives Energy Strategy Shift More companies are increasing their sustainability and decarbonisation ambitions than reducing them, according to PwC’s Third Annual State of Decarbonization Report, with energy now core to how businesses deliver on those goals. The findings show that 23% of companies are stepping up their commitments compared to 18% scaling back, while 82% are maintaining or accelerating timelines. At the same time, rising electricity prices and growing demand are pushing energy strategy to the forefront of corporate decision-making. How do energy pressures reshape decarbonisation? Energy has become a defining factor in decarbonisation performance. Electricity prices have risen by between 7% and 25%, while global investment in industrial energy efficiency has surged by 45% between 2020 and 2025 to around US$30bn. Despite these pressures, 69% of companies are still on track to meet Scope 1 and 2 emissions targets. Businesses are increasingly focusing on energy optimisation and operational efficiency to deliver both emissions cuts and cost savings. “What the data shows is that the business case for decarbonisation is getting stronger, not weaker,” writes David Linich, Decarbonization and Sustainable Operations Consultant and Partner at PwC, announcing the release of the report. “Even in a tougher environment, most companies are staying the course – and the leaders are shifting from broad ambition to disciplined execution that supports resilience, growth and long-term value.” Companies investing more heavily in climate transition activities are also seeing valuation premiums ranging from 15% to 59%. Supply chains remain a critical energy gap While operational emissions are improving, supply chain emissions continue to present a major challenge. Scope 3 progress is lagging behind, with only 56% of companies on track. Energy use across supply chains is difficult to measure and manage due to limited visibility beyond tier 1 suppliers. Just 18% of companies