INTELLIGENT BRANDS // Green Technology
Organisations are ramping up efforts to meet sustainability targets , despite geopolitical challenges
Nearly two thirds of executives say geopolitics is driving a slowdown in their sustainability investments
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 .
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 . Eighty-four percent 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 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 program , 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 .”
Consumers unconvinced about progress
Consumers want to see corporations going even further and demand transparency . The report finds three-quarters of consumers expecting corporations to play a larger role in reducing GHG emissions in 2024 . Furthermore , even as organisations ramp up sustainability initiatives , consumers are more sceptical than ever about corporate sustainability , as more than half believe that organisations are greenwashing their sustainability initiatives , up from 33 % in 2023 . p
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