In collaboration with Accenture Net-Zero Industry Tracker 2023 Edition INSIGHT REPORT NOVEMBER 2023 Images: Getty Images Contents Foreword 3 Executive summary 4 Introduction 6 1 Cross industry findings 9 2 Aviation industry net-zero tracker 22 3 Shipping industry net-zero tracker 33 4 Trucking industry net-zero tracker 44 5 Steel industry net-zero tracker 54 6 Cement industry net-zero tracker 65 7 Aluminium industry net-zero tracker 75 8 Ammonia industry net-zero tracker 86 9 Oil and gas industry net-zero tracker 97 Conclusion 107 Appendices 108 A1: Abbreviations and acronyms 108 A2: Mission and methodology 110 A3: Data sources 112 Contributors 113 Endnotes 116 Disclaimer This document is published by the World Economic Forum as a contribution to a project, insight area or interaction. The findings, interpretations and conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum, nor the entirety of its Members, Partners or other stakeholders. © 2023 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. Net-Zero Industry Tracker 2023 Edition 2 November 2023 Net-Zero Industry Tracker 2023 Edition Foreword Roberto Bocca Head, Centre for Energy and Materials; Member of the Executive Committee, World Economic Forum In a decade marked by economic expansion and surging demand for goods and transport, we face a paradoxical challenge: How can we address climate change while fostering economic growth and resilience? This challenge is particularly difficult for companies operating in the steel, cement, aluminium, ammonia, energy and transport sectors. These companies are critical to satisfying future demand and enabling economic growth. Yet, they contribute over 40% of the world’s greenhouse gas (GHG) emissions. Their emissions are difficult, but critical to abate. It is encouraging that many businesses have made significant progress towards their 2050 net-zero goals. Yet most of that momentum is seen in companies with easily abatable emissions, substantial financial resources to invest in decarbonization, public accountability or those operating in advanced economies with supportive policies. A gap remains between those abatement leaders and companies experiencing greater emission intensity, operating in emerging economies or lacking the financial means to embark on a substantial decarbonization journey. The challenges facing these companies and sectors are pernicious – and exacerbated by the fact that their technologies, infrastructures and policy frameworks often fall short. Through this effort, the World Economic Forum, with support from Accenture, intends to accelerate decarbonization of emission-intensive production, energy and transport industries. Our aim is to ensure that no company is left behind in the transition to a more sustainable and carbon-neutral future, for which timely and consistent monitoring of industrial decarbonization is essential. This practice is crucial to helping companies and industries maintain a steady pace of progress. Still, it first requires a consensus on definitions and thresholds of low-emission products and services from these sectors. Without that, it will be difficult to achieve the transparency needed to build confidence and reinforce the momentum to net zero. Muqsit Ashraf Global Strategy Lead, Accenture The Net-Zero Industry Tracker focuses on production, transport and energy sectors. Decarbonizing these industries’ processes and value chains will require more than technological advancements. The effort must encompass business operations, regulations and wider cross-sectoral collaboration. While some countries are issuing supportive policies and financial commitments, the reality is that these sectors are lagging. We believe a course correction is still possible. It will require industrial leaders to champion innovative business models and shared infrastructures, such as hubs and clusters, that provide greater access to development opportunities and promote equitable sector growth. A successful transition will also require significant financial commitments; we estimate roughly $13.5 trillion will be needed to build the clea