PwC: The Need for Collaboration to Decarbonise Sectors

Sector by sector progress on net zero is inconsistent, emissions intensity is increasing in some industries and Scope 3 emissions remain the Achilles heel of the transition.

The second edition of PwC’s ‘State of Decarbonization – Sector Insights’ delivers a solution-oriented assessment that, while corporate climate ambition is rising, real-world delivery is lagging. 

Amongst these challenges, the financial services sector is positioned not just as a funder of climate action, but a critical driver of change — provided it can bridge a growing green skills gap.

Inside PwC’s Sector Insights Report

PwC’s report analyses 12 strategically important UK sectors and reveals three major cross-cutting barriers to decarbonisation.

“I was surprised at just how much variance there is across industry sectors,” writes David Linich, Partner at PwC, on LinkedIn.

“We (PwC) analysed more than one million fields from 4,163 companies to understand decarbonisation ambitions, progress and outcomes at an industry sector level.

“The types and levels of investment, the business value, the challenges and differentiators that help determine whether companies are on or off track – these all vary quite a bit across the 12 sectors we analysed.”

The report identified that there is a lack of clarity in emissions ownership across value chains, especially in high-emitting sectors like food, energy and construction.

The report also found that there is insufficient internal capacity and capability to deliver net zero strategies, despite rising ambition.

PwC emphasises the need for company expansion, highlighting inadequate capital deployment to support large-scale transformation projects and supplier engagement.

“As green and natural finance continues to grow, the pressing green skills gap needs to be addressed,” explains Carl Sizer, Chief Markets Officer at PwC UK. 

“Collaboration between government, educational institutions and the financial sector is essential to meet net zero objectives and promote sustainability in finance. 

“For graduates and students green skills are no longer a niche specialisation, but core to jobs in financial services. And for the existing workforce – effective and comprehensive green reskilling and upskilling takes time, so investment in resources and training should commence straight away.”

The PwC report focuses on 12 sectors including:

• Agriculture & Food: 81% of emissions occur upstream, often outside direct control, with only 13% of firms engaging their suppliers on decarbonisation.
  
  
• Construction & Infrastructure: Although 44% of companies have raised their ambition in 2024, Scope 3 emissions dominate and few have value chain strategies in place.
  
  
• Financial Services (FS): The FS sector is identified as a “critical enabler” of progress across all industries, particularly in aligning capital flows with net zero.

The report also highlights that only 22% of companies are actively assessing emissions and climate risk across their value chains – underscoring the systemic need for better data, transparency and skills.

The FS’ key to decarbonisation 

While financial institutions are not large emitters themselves, they yield power across capital allocation, risk pricing and corporate governance. 

This size and influence makes the FS central to:

• Funding renewable energy, nature-based solutions and low-carbon technologies.
   
• Supporting clients in high-emitting sectors through transition finance.
   
• Ensuring integrity in green investment and ESG-linked lending.
   
• Embedding climate risk into valuations, underwriting and insurance models.

However, the report highlights that to do so effectively, financial professionals must understand emissions profiling, transition risk and regulatory frameworks.

“The upskilling of the FS sector is essential to meet the demand of green jobs, net zero targets and the UK ambition of becoming the world's first net zero-aligned financial centre,” emphasises Carl Sizer.

“We must recognise that financial services will be a driving force underpinning the transition and we need to ensure we have the skillset there. Moreover, it’s good for the environment, good for the economy and presents an opportunity by creating opportunities that are accessible to all.”

PwC states that the FS must also understand the mechanics of carbon markets, skills that the industry lacks at the minute.

According to PwC, employers are already paying a 14% premium for professionals with AI skills in climate-related roles and sectors most exposed to AI see a fivefold increase in productivity. 

Green skills are critical

PwC’s report heavily emphasises that sector-specific decarbonisation pathways will only be achieved through collaboration, capital and capability. 

In particular, financial services must evolve from funding ambitions to enabling execution however, this requires a workforce fluent in sustainability.

To do this, the report recommends:

• Embedding green skills into financial training and education at all levels
   
• Scaling cross-sector partnerships between banks, insurers, investors, government and academia
   
• Investing in supplier enablement and emissions data capabilities across financed emissions portfolios.

Upskilling finance professionals is no longer optional, it is a must if sectors are to decarbonise and reach the soon approaching net zero goals. 

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