Global organisations are ramping up efforts towards achieving their sustainability goals despite staring down a number of challenges, according to Capgemini Research Institute’s latest report.
Surveying more than 2,100 global executives across 13 countries, the report found the majority (84 per cent) believe their organisation is on track to meet carbon emission goals. Additionally, two-thirds are redesigning products to remove fossil fuel feedstock resources and around 70 per cent have implemented water stewardship programs.
Key areas of improvement in the last few years include sustainable design, biodiversity, and circularity, with the firm’s sustainability maturing index revealing a 22 percentage point increase in firms’ adoption of sustainable practices and initiatives from 2022 to 2024.
Australia has made the most consistent progress year on year, it said, with a 6 percentage point increase in 2023 and a 14 percentage point increase in 2024.
“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.
“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.”
Capgemini is also seeing new climate tech innovations and regulations further strengthening sustainability efforts, Garcia added.
The report highlighted over 65 per cent of executives recognise climate tech like industrial carbon capture, electrification, and low-carbon hydrogen as “crucial” to reducing greenhouse gas emissions and hitting their targets. They also recognise the importance of data and digital technologies to accelerate climate tech adoption.
However, as the report outlined, these advantages must be weighed against high costs, skills shortages, and regulatory uncertainty.
It also revealed geopolitical risk has had an impact on sustainability initiatives, with concerns around supply chain disruptions and uncertainty around government funding hampering progress.
“Our research reveals that sustainability is geopolitically and politically sensitive,” it said.
“There are scenarios in which geopolitics can accelerate sustainability; however, our research reveals a pessimistic sentiment among executives regarding the impact of current geopolitics on sustainability, which could serve as a potential disrupter to the momentum.”
Against the backdrop of wars in Ukraine and the Middle East, and concerns of US–China relations, around 65 per cent of executives said current geopolitical dynamics are driving a slowdown in sustainability investments.
Moreover, 69 per cent said they are concerned about the impact of the uncertain political environment in the US and other regions on their sustainability investments and projects.
Consumer scepticism of sustainability progress has also been a key consideration.
“Our findings reveal that organisations are struggling to convince consumers of their progress. Despite corporate awareness of greenwashing, consumers are increasingly sceptical and distrustful of their claims,” the report said.
The percentage of consumers who believe firms are greenwashing their sustainability initiatives saw a marked risk, increasing from 33 per cent to 52 per cent in 2024.
