Key Impact Points
- 70% of executives rank climate change among their top three corporate priorities for the next three years.
- 85% of businesses have increased sustainability investments in the past year.
- 52% of organizations have established cross-functional ESG working groups to drive sustainability efforts.
The Growing Business Case for Climate Action
A new Deloitte report reveals a foundational shift in corporate sustainability, driven by climate risks, evolving regulations, and stakeholder demands. Record-breaking climate disruptions, such as extreme weather and rising insurance costs, are reshaping business strategies globally.
“Seventy-nine percent of respondents say regulators, board members, investors, customers, and employees are calling for increased climate action,” Deloitte notes.
Sustainability as Core Business Strategy
Deloitte’s research shows that sustainability has evolved beyond compliance into a central business strategy:
- 70% of executives foresee climate change as a major influence on corporate strategy.
- 85% of respondents reported increased sustainability budgets, aligning resources to meet goals.
“Almost half of respondents say sustainable business model transformation is a central component of their organization’s overall strategy,” the report highlights.
By integrating sustainability into operations, companies improve resilience, fuel innovation, and strengthen market positions in a decarbonizing economy.
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Governance and Resource Alignment Drive Progress
Companies are building management systems to support their climate-forward agendas:
- 52% have established cross-functional ESG groups; another 37% are creating them.
- Organizations with governance structures report 38% greater progress toward sustainability goals.
Deloitte states, “Governance like this helps drive results…those with ESG councils were far more likely to make significant progress.”
Building Momentum Toward Net-Zero
The report outlines critical areas for organizations to gain traction:
- Establish a clear business case for sustainability to enhance competitiveness and minimize risks.
- Align resources to ensure progress and mitigate greenwashing risks.
- Invest in data management systems to track and identify carbon reduction opportunities.
- Engage stakeholders transparently to align sustainability goals with material business impacts.
The Path Forward
Deloitte concludes: “At the intersection of climate necessity and sustainability opportunity, the future is now. The decisions leaders make today could define their competitiveness, innovation, and resilience in the net-zero economy.”
