90% of companies are taking climate action, but only 12% are set up to turn it into business value, South Pole finds

New research reveals a critical 'value delivery gap' as companies struggle to turn climate activity into measurable emissions reductions and business outcomes, yet the few with the right foundations in place report significantly stronger business benefits.

• 90% of respondents say their organisation has active climate initiatives, but only 43% have an approved strategy with implementation well underway
• Only 23% say 75–100% of their climate-related business cases are approved by the CFO or investment committee
• The 12% that combine strategy, a focus on value protection and creation, climate-risk integration and dedicated funding are nearly twice as likely to report stronger business outcomes
• 95% report barriers to capturing business value from climate action, with siloed responsibility the most commonly cited obstacle

ZURICH — 21 October 2026 — Climate action is widespread across major companies, but most businesses are still struggling to translate climate goals into funded, implemented decarbonisation and measurable business value, according to South Pole’s 2026 Net Zero Report.

The study of 600 senior business decision-makers across Europe and the United States found that 90% report active climate initiatives, while only 43% have an approved climate strategy with implementation well underway. Just 23% say 75–100% of their climate-related business cases are approved by the CFO or investment committee in the past 24 months.

The report assessed respondents against core criteria to separate effective execution from ambition. The Advanced group (12% of the respondents) met all four criteria South Pole identified as the foundations to deliver value from climate action: a formal strategy under implementation, both value creation and risk protection outcomes built into climate plans or strategies, climate risk quantified or integrated into financial asset valuation or decision-making, and dedicated capital or operating budget for climate transition. The Aspiring group (the remaining 88%) did not meet all four.

South Pole calls this the value delivery gap, the disconnect between climate action and the ability to turn it into real results such as measurable emissions reductions and business value..

The findings point to an execution challenge. Climate activity often remains fragmented across sustainability, finance, procurement, operations and the supply chain, making it harder to prioritise interventions, secure funding, coordinate implementation and demonstrate results. Siloed responsibility was the most frequently cited barrier to capturing business value from climate action, identified by 24% of respondents, while 20% cited that sustainability and finance teams use different ways to measure value.

While 77% of respondents say they build both risk protection and value creation into their climate plans, 53% still describe their climate work as compliance-focused.

Climate foundations support stronger business outcomes

The research also found that companies in the Advanced group were nearly twice as likely than the rest of the sample to report stronger business outcomes:

• 91% more likely to report improving operational efficiency or reducing costs
• 91% more likely to report improving access to finance or financing terms
• 77% more likely to report winning new customers, contracts or tenders
• 76% more likely to report entering new markets or industry segments

Dara Olufon, Global Head of Advisory at South Pole, said: "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. 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".

Four actions to close the value delivery gap

South Pole identifies four actions companies need to take to translate climate goals into measurable emissions reductions and business value:

1. Decide where to act
Identify and prioritise interventions across operations, and value chains based on emissions impact, business value, economics, implementation feasibility and risk.

2. Build the case and secure commitment
Translate priorities into executable and fundable plans by securing commitment through assigned executive ownership, dedicated budgets, and CFO sign-off to ensure full accountability.

3. Mobilise the right delivery model
Operationalise every intervention across core business functions rather than leaving delivery to sustainability alone; activating internal teams, suppliers, renewable energy, technology, capital, and market-based instruments to execute projects across the value chain.

4. Measure and prove results
Build emissions and business value measurement into delivery from the start, with the accounting, monitoring and reporting needed to demonstrate progress.

The findings underline a broader shift in corporate decarbonisation. Emissions sit across operations, and increasingly complex value chains, and the appropriate intervention differs by emissions source. Companies therefore need to connect strategy, implementation, market mechanisms and measurement around the same business problem rather than manage them as separate climate activities.

The full South Pole 2026 Net Zero Report and Benchmark Scorecard are available here.