Carbon Neutral Group lists sector net zero readiness in Hospitality, FMCG, Manufacturing, Logistics and Retail
Carbon Neutral Group, who work with organisations to build actionable net zero roadmaps, grounded in robust carbon accounting and operational change, has reviewed industry sectors and their road in sustainability, specifically those who are leading the way to becoming net zero, by examining their decarbonisation progress across five major industries.
When it comes down to industry sectors, retail and fast-moving consumer goods (FMCG) companies are currently leading the way to net zero readiness, in comparison to logistics and hospitality industries, who for now remain behind.
The research assessed the hospitality, FMCG, manufacturing, logistics and retail sectors, comparing each industry’s knowledge and progress in areas such as emissions measurement, science-based target setting, supply-chain engagement and the implementation of decarbonisation strategies.
The top five industries which are on a good pathway to net zero:
- Retail and FMCG: Strongest so far in strategic plans and governance
- Manufacturing: They have progress where technology and investment align, which is beneficial
- Logistics and Hospitality: These two industries are most in need of accelerated support and coordinated action
The Retail and FMCG sectors emerged as the most strategically advanced. This may be driven largely by multinational brands with formal science-based targets, established ESG governance, along with increasing pressure from investors and consumers where there isl a huge demand for sustainable products but also evidently pressures of the rising cost of those products.
George Curtis, CEO of Carbon Neutral Group says: “To continue their progression in 2026, Retail and FMCG brands need to pair sustainability with quality, convenience, value, and trust, it’s crucial that C-suite members keep their sustainability commitments they have promised consumers throughout, to keep that reliability and trust going.“
Large retailers have also made significant progress in reducing operational emissions through renewable energy procurement, energy efficiency and fleet electrification. When it comes down to it, the FMCG companies are leveraging supply-chain engagement to accelerate emission reductions. However, these sectors will still face challenges in translating top-level commitments into consistent supplier-level action, particularly among small and medium-sized businesses.
When reviewing reports, Carbon Neutral Group, found that the manufacturing sector showed moderate to high readiness, particularly among energy-intensive producers investing in renewables, electrification and efficiency upgrades.
Where capital and infrastructure is available, manufacturers are demonstrating tangible emissions reductions, meaning the industry’s overall pace is constrained by high upfront investment requirements and asset lifecycles.
George Curtis, CEO of Carbon Neutral Group continues: “Teaming up with a Carbon Consultancy, really helps industries that are lagging behind, it allows us to deeply understand the company’s emissions profile but really enables us to advise the business on quick wins to reduce their footprint whilst creating longer term plans. The longer term plans could range from, reviewing suppliers, products and services and the associated footprint, through to how the business travels and commutes. Any changes in these areas will need a longer time to implement and for the business to feel the benefits of change“.
Despite the logistics industry critical role in global supply chains, it remains one of the least net-zero-ready sectors. While awareness is rising and pilot projects around alternative fuels and efficiency are increasing, it seems adoption is inconsistent and emissions tracking remains a little broken.
The Hospitality sector ranked lowest overall in being net zero ready. Although the sector’s awareness is improving and industry bodies are developing shared roadmaps, most operators, particularly smaller venues, really lack data, capital and the expertise required to implement comprehensive decarbonisation strategies.
Food waste, building energy use and supply-chain emissions are key challenges that they are currently facing.
George Curtis continues: “This leads to why it is so important to have regular reviews of your energy use, plan for the seasonal changes and look at ways, where possible, on how you can make reductions in this area. Supply chain emissions can be a real headache for businesses. A suggestion that we tend to make is, make the change when onboarding any new supplier. Asking for carbon information on the products/services that are being bought allows for the carbon footprint for that supplier to be calculated. This can be done whilst reviewing the current suppliers, their carbon audits and asking them for their carbon plans for their products and services.“
Achieving net zero requires more than aspirational targets, it demands credible, measurable strategies that drive real reductions. Too often, organisations default to offsetting without understanding the deeper changes they need to make, this can risk confusing stakeholders and slowing down their net zero progress.