A recent report shows that climate change is a top three issues for global C-suite business leaders, with 85 per cent increasing investment in sustainability over the last year.
The report from Deloitte highlights growing appetite and action regarding sustainability for businesses. Notably, 70 per cent of the 2,100 executives surveyed across 27 countries expect climate change to “significantly impact strategies and operations” over the next three years, leading 45 per cent to transform their business model and strategy to address climate change.
Decarbonisation and net zero projects seem to have shaken the stigma of unfeasibility, as a staggering 92 per cent of respondents believe their company can grow while reducing greenhouse gas emissions, and 50 per cent having implements technology solutions for sustainability compared to 42 per cent planning to do so within the next two years. This clearly indicates that business leaders are not backing away from their environmental responsibilities, instead taking clear action.
A primary driver of this seems to be business leaders viewing climate action as a catalyst for innovation and development. More than half of business leaders who have already implemented technology solutions say they are using it to develop more sustainable products and services, and 85 per cent are currently developing new environmentally-minded products and services.
Businesses surveyed can be broken down into two key categories:
Climate change is firmly at the top of the agenda. Of the business leaders surveyed, when asked what their organisation sees as the most pressing issue over the next year, 38 per cent said innovation, including AI and digital, 28 per cent said economic outlook, and 37 per cent said climate change, putting climate change ahead of competition for talent and political uncertainty.
Breaking down the analysis into specific climate issues impacting businesses:
Interestingly, business leaders aren’t feeling the pressure primarily from the customers investing in their products and services. Regulators and government, board members and management, and shareholders and investors are the three most cited sources of pressure businesses feel are making them act on climate.
Overall, the report is a clear indicator that businesses need to consider how their operations can be adjusted to not only consider climate impact, but work to mitigate it. As more businesses become invested in climate change, communication across one’s value chain will become easier and lead to sustainability action that stems beyond the four walls of a single business.
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