Global organizations are stepping up efforts to achieve their sustainability goals despite a number of challenges, according to the latest report from the Capgemini Research Institute.
Surveying more than 2,100 global leaders across 13 countries, the report reveals that the majority (84%) believe their organization is on track to meet its carbon emissions targets. Additionally, two-thirds are redesigning their products to eliminate fossil fuel resources and approximately 70% have implemented water management programs.
Key areas of improvement over recent years include sustainable design, biodiversity and circularity, with the Business Maturity Index revealing a 22 percentage point increase in business adoption of practices and d sustainable initiatives between 2022 and 2024.
Australia has made the most consistent year-over-year progress, increasing by 6 percentage points in 2023 and 14 percentage points in 2024.
“This year’s report shows that sustainability projects continue to gain momentum in 2024 despite current headwinds,” said Cyril Garcia, head of global sustainability services at Capgemini.
“Business leaders have the power and responsibility to move us toward a more sustainable economy. Water management, biodiversity preservation and circular practices are now established as key business imperatives.
Capgemini also sees new climate technology innovations and regulations further strengthening sustainability efforts, Garcia added.
The report highlights that more than 65% of leaders recognize that climate technologies such as industrial carbon capture, electrification and low-carbon hydrogen are “crucial” to reducing greenhouse gas emissions and achieve their goals. They also recognize the importance of data and digital technologies to accelerate the adoption of climate technologies.
However, as the report highlights, these benefits must be weighed against high costs, skills shortages and regulatory uncertainty.
The study also finds that geopolitical risk has impacted sustainability initiatives, with concerns over supply chain disruptions and uncertainty around government funding hampering progress.
“Our research reveals that sustainability is a geopolitically and politically sensitive topic,” he says.
“There are scenarios in which geopolitics can accelerate sustainability; however, our research reveals a pessimistic sentiment among leaders about the impact of current geopolitics on sustainability, which could potentially disrupt this dynamic.
Against the backdrop of wars in Ukraine and the Middle East and concerns over U.S.-China relations, approximately 65% of executives believe current geopolitical dynamics are leading to a slowdown in sustainable investments.
Additionally, 69 percent say they are concerned about the impact of the uncertain political environment in the United States and other regions on their sustainable investments and projects.
Consumer skepticism about sustainability progress has also been a key factor.
“Our findings reveal that organizations are struggling to convince consumers of their progress. Although companies are aware of greenwashing, consumers are increasingly skeptical and distrustful of their claims,” the report said.
The percentage of consumers who believe companies are whitewashing their sustainability initiatives has seen a marked risk, increasing from 33 percent to 52 percent in 2024.
