EDITOR ’ S QUESTION
HOW CAN CIOS BEST LEVERAGE TECHNOLOGY AND REGULATORY FRAMEWORKS TO ENHANCE SUSTAINABILITY REPORTING AND DRIVE MEASURABLE PROGRESS ?
As organisations ramp up efforts to meet sustainability targets , we get insight from , Dr Richard Tipper , Chief Scientific Officer EcoOnline ; Sophie Graham , Chief Sustainability Officer , IFS ; and Sanjit Shewale , VP and Global Head of Digital Business , Process Industries , ABB , about how CIOs can integrate efficient systems to aid sustainability reporting .
Organisations continue to make progress in their sustainability initiatives , despite facing geopolitical challenges . Regulation and technology are proving to be a vital part of this progress , with two-thirds of executives agreeing that their organisation will never be able to achieve its sustainability goals without climate tech .
This is according to the Capgemini Research Institute ’ s latest report , A world in balance 2024 : Accelerating sustainability amidst geopolitical challenges , which tracks advancements in organisations ’ environmental and social sustainability over the last three years . products is a core aspect of their manufacturing strategy , up from 53 % in 2022 , while over two-thirds said they were redesigning products to remove fossil fuel feedstock sources , up from less than half in 2022 . In addition , three-quarters of executives have implemented a water-stewardship programme , up from 55 % in 2022 .
In late 2023 , executives were planning to increase investments in sustainability this year . However , companies have not followed through : average annual investment in sustainability initiatives and practices now stands at 0.82 % of total revenue , down from 0.92 % in 2023 .
“ This year ’ s report shows sustainability projects continuing to build momentum in 2024 despite current headwinds ,” said Cyril Garcia , Capgemini ’ s Head of Global Sustainability Services and Corporate Responsibility and Group Executive Board Member . “ Business leaders have the power and the responsibility to steer us towards a more sustainable economy . Water stewardship , biodiversity preservation , and circular practices are now established as key business imperatives . Executives are being very pragmatic , and
CO 2 reduction must now be translated into cost savings . We continue to see sustainability efforts bolstered by new climate tech innovations and regulations . The best way to build trust and credibility with consumers is by demonstrating tangible outcomes and planning for a future with sustainability at its heart .”
Geopolitics and regulations impacting corporate sustainability initiatives
The third edition of the report highlights marked improvements in circularity , sustainable design , measurement , water stewardship , biodiversity and sustainability skilling , despite shortfalls in tackling Scope 3 emissions and consumer scepticism .
Collectively , organisations are ramping up their efforts to meet their sustainability targets , and their maturity in adopting sustainable practices has increased steadily since 2022 . Over four-fifths ( 84 %) of executives this year say their organisation is on target to meet its carbon emissions goals ; less than a tenth say they are behind .
As organisations look to minimise their impact on the environment , progress is particularly visible in terms of circularity , sustainable product design , measurement , and water management . For instance , nearly three-quarters of executives say that recycling
Executives pointed to climate-related regulations as a key driver of sustainability projects . A full threequarters of executives believe that sustainability regulation is necessary to achieve global climate goals , and nearly two-thirds even agree that without regulation , their organisation would not have launched many environmental sustainability initiatives .
Globally , 73 % of executives agree that the EU ’ s Corporate Sustainability Reporting Directive ( CSRD ) is honing sustainability measurement and tracking capabilities . However , organisations continue to fall short in terms of reporting on sustainability initiatives , especially on Scope 3 emissions .
Among organisations required to report for CSRD in 2025 , just over a third say that they are prepared to report Scope 3 downstream emissions next year , while 86 % are prepared for Scope 1 .
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