Decarbonisation of German industry: a data-based analysis

The decarbonisation of industry is one of Germany's biggest challenges. Our comprehensive study "Mastering the Climate Transition Journey" sheds light on where companies stand on the path to Net Zero, how they can successfully embark on the transformation and what opportunities arise in the process.

For the study, KPMG analysed the sustainability reports of the 160 companies listed on the DAX, MDAX and SDAX in Germany. The findings were supplemented by the assessments of 30 top decision-makers from various large companies in the industrial sector, with whom KPMG conducted expert interviews for the study.

On the way to net zero, the majority of companies in Germany's most important share indices have set themselves transparent and ambitious targets: 66 per cent of companies have committed to long-term targets for their Scope 1 and Scope 2 emissions. The former include the direct emissions of companies, while the latter take into account the indirect CO₂ emissions resulting from the purchase of energy. Almost every company (90 per cent) reports emissions in these two categories.

However, more than half of the companies are lagging behind their self-imposed targets. The study reveals major differences in a sector comparison: While finance companies are still closest to their Scope 1 and Scope 2 targets (66.7 per cent), only 16.7 per cent of companies in the chemicals and materials industry are on track to achieve their targets according to their self-communicated assessment.

With regard to the industrial sector, which is critical for Germany, the results of the expert interviews show that the majority of companies do see potential in decarbonisation. More than half of those surveyed are convinced that the climate transformation will improve their competitive position. There is also a consensus on the importance of the transformation: 75 per cent of respondents expect major changes in their business and operating models.

This study offers valuable insights and practical recommendations for companies looking to optimise their decarbonisation strategy. Take the opportunity to obtain comprehensive information and strengthen your competitiveness.