Numerous UK companies have begun measuring and disclosing their carbon emissions. However, some are facing challenges in delivering on their emissions reduction commitments despite persistent stakeholder pressure to decarbonise.

Nonetheless, leaders are emerging. Some companies are successfully meeting their decarbonisation targets, providing valuable lessons for others to follow.

In 2023, CDP and Bain & Company partnered to examine the decarbonisation journeys of UK-based companies. This report builds on those findings and our prior analyses of disclosure, ambition, and delivery trends.

We have identified five key findings on the progress being made and effective actions to accelerate decarbonisation:

1. Measurement and disclosure of emissions increased. Since 2022, emissions disclosures increased by 24%. However, we need more Scope 3 disclosures in upstream and downstream categories to fully understand the scale of the challenge. Only 56% of companies disclosed Scope 3 emissions vs. 74% for Scope 1 and Scope 2 emissions.
2. Target-setting has stalled. Only a third of UK companies that disclosed their emissions set reduction targets, and the ambition of those targets has remained flat.
3. Progress on delivery is slowing. In 2023, the average decarbonisation for Scopes 1 and 2 was 6% per annum (p.a.), and for Scope 3, it was 2% p.a. In comparison, in 2022, Scope 1 and 2 reductions were 9% p.a. and Scope 3 reductions were 8% p.a. (see Figure 1). Slower progress increases the risk of companies missing their targets in the future.  
4. Climate transition plans accelerate decarbonisation: Organizations with climate transition plans demonstrated faster decarbonisation. They achieved 8.3% decarbonisation p.a. compared to 3.9% p.a. for companies without climate transition plans. When climate transition plans were supported by a subset of key enablers, the decarbonisation of organisations accelerated even further (by 3 to 6 percentage points p.a., see Figure 2).
5. Link to value creation accelerates decarbonisation. Leading UK companies are incorporating decarbonisation into their core business strategies to create value. Companies that identify financial opportunities reduce Scope 1 and 2 emissions faster by 2 to 3 percentage points p.a.

Figure 1

Figure 2

Recommendations for UK corporations

Disclosure and target-setting are necessary first steps, but leading UK corporates follow best practices throughout the journey from disclosure to delivery.

• Disclose: Leading companies disclose their climate emissions for Scopes 1, 2, and 3, and they comprehensively report on upstream and material downstream Scope 3 categories.
• Set ambitions: Leaders set ambitious decarbonisation targets that cover all Scopes and both near- and long-term horizons.
• Deliver: Successful companies develop credible climate transition plans. Their plans are equipped with key enablers and are linked to value creation to identify financial uplift opportunities.

Companies need to go beyond the basics to understand their climate impact across the value chain. They can then integrate key decarbonisation tactics into core business strategies. By linking decarbonisation plans to value creation, UK-based companies can effectively reduce their emissions and achieve better financial results.

About CDP

CDP is a global non-profit that runs the world’s only independent environmental disclosure system. As the founder of environmental reporting, we believe in transparency and the power of data to drive change. Partnering with leaders in enterprise, capital, policy and science, we surface the information needed to enable Earth-positive decisions. We helped more than 24,800 companies and 1,100 cities, states and regions disclose their environmental impacts in 2024. Financial institutions with more than a quarter of the world’s institutional assets use CDP data to help inform investment and lending decisions. Aligned with the ISSB’s climate standard, IFRS S2, as its foundational baseline, CDP integrates best-practice reporting standards and frameworks in one place. Our team is truly global, united by our shared desire to build a world where people, planet and profit are truly balanced. Visit CDP.net or follow us @CDP to find out more.