In recent years, U.S. corporations have made bold commitments to achieve net-zero carbon emissions by 2050 or sooner, acknowledging the role of business in addressing climate change. As we move through 2024, it's clear that some companies are making significant strides, while others face obstacles that challenge their progress. In this blog, we'll explore how leading corporations across sectors are advancing toward their net-zero goals, examine the barriers they're encountering, and highlight efforts by both major players and small-to-medium enterprises (SMEs).

Technology Sector: Leadership and Innovation

The tech sector has been one of the most aggressive in pursuing net-zero goals, driven by its reliance on electricity and data centers that demand significant energy use. Companies like Microsoft and Apple are leading the charge.

• Microsoft: Committed to becoming carbon negative by 2030, Microsoft has been a leader in renewable energy procurement and carbon offset projects. The company has invested heavily in technologies like direct air capture and forest restoration.

• Apple: Apple aims to make its entire supply chain and products carbon neutral by 2030. The company is focusing on renewable materials, recycling, and renewable energy sources across its supply chain. Apple has made substantial progress by working with suppliers committed to using 100% renewable energy. The challenge Apple faces lies in aligning all of its suppliers, particularly those outside the U.S., with the same stringent environmental standards.

For tech SMEs, the challenge is cost. Smaller companies like Etsy have made strides, committing to offsetting carbon emissions from shipping, but scaling renewable energy usage or offset projects can be cost-prohibitive without the resources of larger firms.

 

Energy Sector: Transitioning to renewables

The energy sector has perhaps the most challenging path to net-zero given its reliance on fossil fuels. Nevertheless, several companies are attempting significant transformations.

• ExxonMobil: Historically slow to engage with climate goals, ExxonMobil is now investing heavily in carbon capture and storage (CCS) technologies and low-carbon hydrogen production. The company has pledged to reduce its carbon intensity by 30% by 2030 and invest $17 billion in lower-carbon projects through 2027. 

• NextEra Energy: As a leader in renewable energy, NextEra has committed to eliminating carbon emissions from its operations by 2045. They are leveraging wind, solar, and battery storage technologies to transition away from fossil fuels. 

For smaller energy firms, the challenge often lies in financing renewable energy projects and overcoming regulatory hurdles. Arcadia, an energy SME focused on making clean energy accessible, has shown that through creative business models like community solar, smaller players can still contribute meaningfully to net-zero efforts.

Automotive Sector: Electrification and Innovation

Transportation accounts for nearly 29% of U.S. greenhouse gas emissions, making it a critical sector for achieving net-zero goals. Major players like Ford and General Motors (GM) are pushing forward with electrification.

• Ford: The automaker has pledged to reach carbon neutrality globally by 2050, with significant investments in electric vehicles (EVs) like the all-electric F-150 Lightning. However, scaling EV production to meet consumer demand and transitioning supply chains away from carbon-intensive processes remain significant hurdles.

• General Motors: GM is investing heavily in electric and autonomous vehicle development through 2025 and aims to be fully carbon neutral by 2040. Despite ambitious targets, GM faces challenges around battery technology, specifically sourcing materials for lithium-ion batteries sustainably and at scale.

Smaller transportation companies like Rivian, a U.S.-based EV startup, are playing their part by focusing on innovation and sustainable design. However, they encounter significant barriers to scaling production and reducing costs, which hinders their ability to meet widespread demand and achieve profitability.

Retail and Consumer Goods: Sustainable Sourcing and Circular Economy

Retail giants like Walmart and Patagonia are at the forefront of sustainable practices and reducing carbon emissions through their supply chains.

• Walmart: Walmart has pledged to reach zero emissions across its global operations by 2040. The company has made progress by transitioning to renewable energy and reducing emissions in its supply chain through its Project Gigaton, which aims to cut a billion metric tons of greenhouse gases by 2030. Despite this, Walmart has challenges with reducing emissions related to transportation and packaging, as well as controlling the environmental impact of its massive global supply chain.

• Patagonia: Long a leader in sustainability, Patagonia is committed to being carbon neutral across its entire business by 2025. The company focuses on sustainable materials, reducing waste through recycling, and advocating for policies that protect the environment. However, Patagonia’s challenge lies in scaling these efforts without compromising the quality and durability of its products, a common issue for SMEs that prioritize sustainability over rapid growth.

For smaller retail businesses, embracing net-zero goals can mean adopting sustainable sourcing, minimizing waste, and educating customers. Companies like Allbirds, a sustainable footwear SME, are setting a precedent for transparency in carbon labeling and reducing emissions across their supply chain, but they face challenges in balancing growth with maintaining strict environmental standards.

 

 

Food and Agriculture: Reducing Emissions and Sustainable Practices

The food and agriculture sector is grappling with its significant environmental footprint, particularly related to land use, methane emissions, and deforestation. Companies like PepsiCo and General Mills are actively working to reduce their impact.

• PepsiCo: PepsiCo aims to achieve net-zero emissions by 2040, focusing on sustainable agriculture, packaging innovation, and reducing operational emissions. Through partnerships with farmers, the company is promoting regenerative agriculture practices to capture carbon in the soil. Despite these efforts, PepsiCo continues to face challenges related to the emissions generated by its global supply chain and agricultural sourcing.

• General Mills: Committed to net-zero by 2050, General Mills has invested in regenerative agriculture practices and is working with suppliers to reduce emissions. However, the company faces difficulties in shifting its extensive supply chain to more sustainable practices quickly and cost-effectively.

Smaller food companies, such as Impossible Foods, are innovating in the alternative protein space to reduce the carbon footprint of meat production. However, they often face challenges in scaling production and reducing the environmental impact of manufacturing processes as they grow.

Across industries, U.S. companies—both large and small—are making notable progress toward achieving their net-zero goals. Leaders in sectors like technology, energy, and transportation are investing heavily in innovation, renewable energy, and carbon capture technologies, while smaller enterprises are finding unique ways to contribute to the broader effort. However, significant obstacles remain, including financial constraints, technological limitations, supply chain complexity, and the need for continued regulatory support.

As 2024 closes, it will be crucial for these corporations to navigate these challenges, refine their strategies, and maintain momentum toward a sustainable future. By sharing knowledge, scaling innovations, and fostering collaboration across sectors, the U.S. business community can continue its progress toward a net-zero economy.