Can we grow GDP without fossil fuels?
Despite pledges, partnerships, and record renewable investment, fossil fuel consumption is rising. The Financial Times recently reported that over 80% of global energy use still comes from fossil fuels, even in 2025. This energy is powering GDP growth, especially in emerging economies.
“It’s the paradox of modern ESG: economic growth still leans on fossil fuels, yet we’re trying to phase them out,” says Maria Kallik, ESG Advisor at a European logistics firm.
So, how do ESG professionals navigate this contradiction—and stay credible, strategic, and results-driven?
The Reality Behind the Numbers
- Fossil fuel subsidies reached $7 trillion globally in 2023, per the IMF
- The International Energy Agency (IEA) reported coal demand hit new highs in Asia
- Meanwhile, over 90% of Fortune 500 companies now publish ESG reports, according to KPMG’s 2024 survey
- But just 27% include actionable Scope 3 data, per CDP
This disconnect shows that carbon ambition often exceeds carbon action—especially in supply chains, energy procurement, and material sourcing.
Case Snapshot: India’s Fossil–ESG Tension
India grew its GDP by over 6% in 2024—mostly powered by coal and oil. Yet the country also:
- Launched a national ESG disclosure mandate for large companies
- Committed $2.5 billion toward green hydrogen
- Joined the International Sustainability Standards Board (ISSB) pilot
“We comply with India’s ESG rulebook, but our energy inputs remain fossil-based for cost and availability reasons,” admits Anuj R., Supply Chain Head at an auto components firm in Chennai.
This kind of reality plays out across Latin America, Southeast Asia, and parts of Africa, where ESG ambitions collide with fossil-reliant infrastructure.
🔗 ESG & Supply Chains: The Hidden Emissions Crisis
- Scope 3 emissions—often embedded in supply chains—can account for 70% to 90% of a company’s total carbon footprint (GHG Protocol)
- Many fossil-intensive sectors, including shipping, construction, and heavy manufacturing, rely on subcontractors with no emissions data
- Global brands increasingly face reputational risk if they can’t trace supply chain carbon
“We have suppliers in five continents. Only 20% of them can provide any emissions data. Our biggest risk is what we don’t report,” shares Lina Behrens, ESG Lead at a German industrial goods company.
What ESG Professionals Can Do Now
With fossil fuels still anchoring GDP and global trade, ESG practitioners must pivot from ideology to implementation. That means:
- Decoding carbon flows in operations and supply chains
- Redesigning procurement criteria around emissions, not just cost
- Advising finance teams on carbon pricing and offset credibility
- Shaping transition strategies with realistic timelines and region-specific constraints
Training That Translates Theory Into Action
✅ Online Certificate on Carbon Reduction Strategy
This course equips professionals to:
- Analyze Scope 1–3 emissions
- Design credible carbon reduction plans
- Align with TCFD, CDP, and IFRS S2 frameworks
- Evaluate offsetting options, insetting strategies, and energy alternatives
Who it’s for:
ESG officers, climate consultants, carbon accountants, and sustainability managers.
Extras:
Includes emission calculators, real case studies, and sample disclosures from the shipping, utilities, and agrifood sectors.
Diploma on Sustainable Supply Chain Management
This course focuses on:
- ESG risks across global and local supply chains
- Emission-intensive nodes like transportation, mining, and packaging
- Supplier ESG scoring and data gathering
- Designing procurement frameworks that reward low-carbon operations
Who it’s for:
Procurement officers, logistics leaders, ESG analysts, operations teams.
Extras:
Includes sector snapshots from textiles, automotive, chemicals, and logistics, plus templates for supplier audits and ESG KPIs.
Disclosure
These courses are offered by the Sustainability Academy, a recognized provider of ESG and sustainability training worldwide. This blog is part of a promotional content partnership designed to raise awareness of practical training solutions for sustainability professionals.
Final Thought: It’s Time to Lead Through Trade-Offs
Global economic growth isn’t fossil-free yet. But ESG professionals can—and must—lead with pragmatism, accountability, and systems thinking.
By investing in carbon literacy and sustainable supply chain design, you’ll gain the tools to bridge the growing gap between ESG goals and economic realities.
“ESG won’t succeed unless it’s realistic. We need professionals who understand both sustainability frameworks and the fossil-fueled engine of today’s economy,” concludes Dr. Yiwen Lin, Professor of Environmental Finance at NUS.