Eighty-nine percent of CxOs agree there’s a climate crisis and 63 percent say their organizations are very concerned. Yet, they are struggling to fully embed sustainability into their core business strategies, operations, and cultures.
Understanding the rising importance of sustainability and the immense threat of climate change, Deloitte built upon past research by engaging more than 2,000 CxOs across 21 countries to examine business leaders’ and companies’ concerns and actions related to climate change and sustainability. The report also explores the disconnect between company ambition and impact, as well as steps CxOs can take to start to bridge the gap.
The impacts of climate change are weighing heavily on executives’ minds. The majority (79 percent) of CxOs believe the world is at a tipping point when it comes to responding to climate change. That’s up 20 percentage points from a Deloitte survey conducted eight months prior, underscoring the growing importance of acting swiftly.
What’s more, 88 percent of CxOs are optimistic that with immediate action, the world can limit the worst impacts to the planet. That is similarly higher than 63 percent eight months prior. The surge in concern, but also optimism, demonstrates that leaders are increasingly cognizant of the need to act now.
Two-thirds of CxOs said their organizations are using more sustainable materials and increasing the efficiency of energy use; more than half have adopted energy-efficient or climate-friendly machinery, technologies, and equipment; and a majority are intentionally reducing air travel and training employees on their climate actions and impact. However, companies are less likely to implement actions that demonstrate they have embedded climate considerations into their cultures and have the senior leader buy-in and influence to effect meaningful transformation.