According to the latest report by NTT, 68% of enterprises are falling behind on their net-zero targets, and this number could climb to 95% given the steep reductions required to meet those goals. Companies that are lagging (“followers”) cite challenges such as rising data usage, AI’s growing energy demands, the need to balance net-zero with business objectives, and external challenges like geopolitical disruptions.
Only 9% of firms (“leaders”) report being on or ahead of schedule for their net-zero targets, which are often more ambitious. These leaders are using advanced technologies like AI, IoT, and photonics to drive progress. To meet net-zero goals by 2030-2050 (with an average target of 2047), enterprises need to increase their greenhouse gas emissions reduction rate from 4.2% to 11.1% annually—an ambitious leap.
Rising data consumption, driven by AI, has become a significant barrier. Over half (57%) of companies have not factored in the exponential growth of data in their plans, and data center emissions are rising by 1.5% annually for many organisations. Internally, 65% of firms struggle to align net-zero goals with business priorities, and over half report lacking adequate emissions data or a clear implementation roadmap. Externally, regulatory pressures and the digital divide are complicating efforts.
Many companies also underestimated potential challenges like supply chain constraints and geopolitical risks; 33% admit that their initial assumptions are no longer valid. Leaders, however, are using AI for decision support, energy optimisation, and emissions management. While 48% of companies do not use AI for their net-zero goals, those that do are finding more success in advancing their sustainability targets.