Poll suggest businesses are committed to sustainability despite global uncertainty
Capgemini study reveals 82 per cent of global organisations questioned intend to increase investment in sustainability over the next 12-18 months
A growing number of global organisations intend to keep investing in sustainability in the face of increasing uncertainty, according to a report by Capgemini Research Institute.
Entitled A world in balance 2025: Unlocking resilience and long-term value through environmental action, the report revealed that 82 per cent of organisations questioned are planning to increase investment in environmental sustainability, up eight per cent year on year.
The research reached 2,146 executives from 716 businesses, each with over $1bn in revenue and a combined annual revenue of $10.7tn, across 13 countries in North America, Europe and Asia-Pacific and spanning 12 industries and sectors.
Around 75 per cent of respondents said that sustainability is a core future-proofing strategy for their organisations to drive long-term competitiveness, innovation and resilience.
Compliance with regulations is the lead factor in driving sustainability initiatives, followed closely by business value, such as profitability, cost savings, and operational efficiency.
However, on the flip side, just 21 per cent of organisations questioned have developed detailed transition plans with interim targets and capital allocation. Internally, progress is being hindered by budget constraints, inadequate data and measurement systems, and operational silos.
Interestingly, nearly two thirds of the respondents agreed that geopolitics is also responsible for slowing down sustainability investments and projects.
The research also showed that executives are feeling the strain of climate impacts, with more than seven in ten respondents reporting disruptions to supply chains, noting further disruptions to production, and suffering from raw material shortages.
Additionally, around 60 per cent report difficulties in managing insurance or financial risks. While the majority said they prioritise climate adaptation, more than half consider their organisation underprepared for the impacts of climate change.
Cyril Garcia, head of global sustainability services and corporate responsibility at Capgemini, said: “Although sustainability regulations are putting less pressure on organisations, business leaders still see sustainability as a core driver of business value.
However, with global uncertainty and constrained budgets, many companies are facing a reality check.
“With climate risks increasingly high on the corporate agenda, business leaders need to adopt a pragmatic, operational approach and urgently implement concrete, financed transition and adaptation measures. This will not only build true resilience, but also fuel innovation and competitiveness.”