Retail and fast moving consumer goods companies are currently the most prepared for the transition to net zero, according to new sector analysis from Carbon Neutral Group. The consultancy reviewed decarbonisation progress across hospitality, FMCG, manufacturing, logistics and retail, assessing how each sector is measuring emissions, setting targets and putting reduction plans into practice.
The review found a clear divide between sectors that have embedded carbon management into governance and operations, and those still struggling with data, capital and delivery capacity. Retail and FMCG were identified as the most advanced overall, while logistics and hospitality were ranked lowest in net zero readiness.
Carbon Neutral Group examined industry progress across several criteria, including emissions measurement, science based target setting, supply chain engagement and the execution of decarbonisation plans. The findings reflect how far sectors have moved beyond commitments and into practical delivery.
Retail and FMCG companies emerged as the strongest performers, particularly in governance structures and long term planning. Carbon Neutral Group attributes this progress in part to multinational brands adopting formal science based targets and responding to sustained pressure from investors and consumers.
George Curtis, CEO of Carbon Neutral Group, said: “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 reduced operational emissions through renewable energy purchasing, efficiency upgrades and electrification of vehicle fleets. FMCG companies have focused more heavily on engaging suppliers, using their scale to encourage emissions reductions further up the value chain.
Despite this progress, Carbon Neutral Group notes that both sectors face challenges in turning high level commitments into consistent action among suppliers, particularly small and medium sized businesses that often lack resources and reporting capability.
Manufacturing was found to show moderate to high readiness overall. Progress has been strongest where technology options align with available capital, especially among energy intensive producers investing in renewables, electrification and efficiency improvements.
Carbon Neutral Group’s review found that manufacturers with access to infrastructure and finance are achieving measurable emissions reductions. However, the pace of change across the sector is uneven, with high upfront costs and long asset lifecycles slowing adoption for many firms.
Curtis said working with external specialists can help close this gap: “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“.
The logistics sector, despite its central role in global supply chains, was identified as one of the least prepared for net zero. Carbon Neutral Group found that while awareness is increasing and pilot projects around alternative fuels and efficiency are underway, adoption remains inconsistent.
Emissions tracking across logistics operations was also described as fragmented, limiting companies’ ability to plan and measure reductions at scale. This lack of consistent data continues to act as a barrier to wider progress.
Hospitality ranked lowest overall in net zero readiness. Although awareness is improving and industry bodies are beginning to develop shared roadmaps, most operators, particularly smaller venues, lack the data, funding and internal expertise needed to deliver structured decarbonisation programmes.
Key challenges for the sector include food waste, energy use in buildings and supply chain emissions. Carbon Neutral Group notes that these issues are often interconnected and require coordinated planning rather than isolated actions.
Curtis said: “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.“
Across all sectors, Carbon Neutral Group warns that reliance on offsetting without sufficient focus on operational change risks slowing genuine progress. Achieving net zero, the consultancy says, depends on credible measurement, clear priorities and sustained delivery rather than headline targets alone.
The review concludes that while some industries have built strong foundations, others will need accelerated support, better data and closer coordination across value chains to close the gap. As regulatory and commercial pressures continue to increase, Carbon Neutral Group expects sector readiness to become a growing differentiator for organisations operating in energy, manufacturing, retail and services.
