During September and October 2021, Deloitte polled over 2,000 C-suite executives across 21 countries to examine business leaders’ and companies’ concerns and actions when it comes to climate change and environmental sustainability. Climate weighs heavily on the minds of the world’s executives. However, there is also a disconnect between ambition and impact. Organizations are struggling to implement actions that demonstrate they have embedded climate considerations into their culture and have the senior leader buy-in and influence to effect meaningful transformation. The report further explores the disconnect between ambition and impact as well as steps CxOs can take to start to bridge the gap.
Here are a few of the report’s highlights:
Almost 79 percent of executives see the world at a tipping point for responding to climate change compared to just 59 percent eight months prior. Despite the gravity of the moment, there is a prevailing sense of optimism as 88 percent (compared to 63 percent eight months prior) agree that with immediate action, we can limit the worst impacts of climate change.
CxOs are feeling pressure to act. Almost all respondents (97 percent) indicate that their companies have already been negatively impacted by climate change. Additionally, stakeholder groups—including regulators, shareholders, consumers, and employees—are all adding to the pressure to act.
While companies are acting, they are less likely to implement actions that demonstrate they have embedded climate considerations into their culture and have the senior leader buy-in and influence to effect meaningful transformation.
The top actions taken include: Using more sustainable materials (67 percent); Increasing the efficiency of energy use, (66 percent); Using energy-efficient or climate-friendly machinery, technologies, and equipment (57 percent); Training employees on climate change actions and impacts (57 percent); and Reducing the amount of air travel post-pandemic (55 percent).
Considered the Harder-to-Implement, Needle-Moving Actions: Developing new climate-friendly products or services (49 percent); Requiring suppliers and business partners to meet specific sustainability criteria (46 percent); Updating/relocating facilities to make them more resistant to climate impacts; Incorporating climate considerations into lobbying/political donations; and Tying senior leaders’ compensation to environmental sustainability performance.
To read the complete report, go to: 2022-deloitte-global-cxo-sustainability-report.pdf.