Retail and fast-moving consumer goods (FMCG) companies lead the way in net zero readiness, compared to logistics and hospitality industries, which trail behind.
Research by Carbon Neutral Group focused on decarbonisation progress across five major industries: hospitality, FMCG, manufacturing, logistics and retail.
It compared each industry’s knowledge and progress in areas such as emissions measurement, science-based target setting, supply-chain engagement and the implementation of decarbonisation strategies.
The top 5 industries on a pathway to net zero are:
Retail and FMCG: Strongest so far in strategic plans and governance
Manufacturing: They have progress where technology and investment align, which is beneficial
Logistics and Hospitality: These two industries are most in need of accelerated support and coordinated action
The Retail and FMCG sectors emerged as the most strategically advanced. This may be driven largely by multinational brands with formal science-based targets and established ESG governance, along with increasing pressure from investors and consumers who demand sustainable products.
Large retailers have also made significant progress in reducing operational emissions through renewable energy procurement, energy efficiency and fleet electrification.
FMCG companies are leveraging supply-chain engagement to accelerate emission reductions. However, these sectors will still face challenges in translating top-level commitments into consistent supplier-level action, particularly among small and medium-sized businesses.
When reviewing reports, Carbon Neutral Group, found that the manufacturing sector showed moderate to high readiness, particularly among energy-intensive producers investing in renewables, electrification and efficiency upgrades.
Where capital and infrastructure are available, manufacturers are demonstrating tangible emissions reductions, meaning the industry’s overall pace is constrained by high upfront investment requirements and asset lifecycles.
Despite the logistics industry critical role in global supply chains, it remains one of the least net-zero-ready sectors.
While awareness is rising and pilot projects around alternative fuels and efficiency are increasing, it seems adoption is inconsistent and emissions tracking remains a little broken.
The hospitality sector ranked lowest overall in being net zero ready. Although the sector’s awareness is improving and industry bodies are developing shared roadmaps, most operators, particularly smaller venues, really lack data, capital and the expertise required to implement comprehensive decarbonisation strategies.
Food waste, building energy use and supply-chain emissions are key challenges that they are currently facing.
Carbon Neutral Group works with organisations to build actionable net zero roadmaps focused on robust carbon accounting and operational change.
CEO George Curtis said: “Teaming up with a Carbon Consultancy really helps industries that are lagging behind.
“It allows us to deeply understand the company’s emissions profile but really enables us to advise the business on quick wins to reduce their footprint whilst creating longer term plans.
“Achieving net zero requires more than aspirational targets. It demands credible, measurable strategies that drive real reductions.
“Too often, organisations default to offsetting without understanding the deeper changes they need to make, this can risk confusing stakeholders and slowing down their net zero progress.”
