Key Impact Points
- 85% Increase in Sustainability Investments: A significant 85% of organizations have increased their sustainability investments in the past year, up from 75% in 2023.
- Technology Driving Climate Solutions: 50% of CxOs have already implemented technology solutions to meet environmental goals, with another 42% planning to do so within the next two years.
- Transformation in Business Models: 45% of CxOs are transforming their business models to address climate change and sustainability as core components of their strategies.
Overview
According to the newly released Deloitte 2024 CxO Sustainability Report, climate change has solidified its position as a top concern for global business leaders, surpassing issues such as political uncertainty and talent competition. The report, based on a survey of over 2,100 C-suite executives (CxOs) from 27 countries, reveals that 85% of organizations increased their sustainability investments over the past year—a notable rise from 75% in 2023.
The report highlights both optimism and concern from business leaders, indicating that while investments and innovation in climate action are increasing, more decisive actions are needed to drive meaningful progress.
Joe Ucuzoglu, Deloitte Global CEO, underscored the importance of integrating sustainability into business models: “We are seeing more organizations transforming their core business models to address climate change, using it as a catalyst for innovation, growth, and differentiation.”
Climate Action and Technology Implementation
Technology is emerging as a critical tool in the race to decarbonize. According to the report, 50% of CxOs have already begun implementing technological solutions to meet climate goals, with another 42% expecting to follow suit within the next two years. Many companies are leveraging these technologies to develop more sustainable products and services, with innovation around operations being cited as the top expected benefit of sustainability efforts in the coming years.
Climate Change as an Economic Driver
The shift to a low-emissions economy presents a major opportunity for business growth. An overwhelming 92% of CxOs believe that their companies can continue to grow while reducing greenhouse gas emissions. Moreover, supply chain efficiency, resilience, and operating margins have emerged as key business benefits from climate action, reflecting the increasing alignment between sustainability and business value.
Sustainability is also seen as a way to attract talent, with recruiting and retaining talent ranking as a top benefit of climate action. This is particularly relevant as younger workers, including Gen Zs and millennials, are increasingly seeking employers with strong environmental values.
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A Call for More Ambitious Actions
While there has been progress, Deloitte’s report also notes that only 17% of organizations are leading the charge by implementing four to five impactful climate actions, while a larger percentage falls into a “moderate middle” category, having taken two to three meaningful steps. These actions range from tying executive compensation to sustainability outcomes to developing climate-friendly products.
Despite these disparities, the report suggests that many companies are preparing to scale up their efforts in the coming years, with 70% of CxOs expecting climate change to have a high or very high impact on their strategy over the next three years.
Recommendations for Scaling Up Climate Action
As business leaders continue to recognize the tangible benefits of addressing climate change, Deloitte offers several recommendations to scale up sustainability efforts. These include building on existing strengths, exploring new partnerships to drive impact, and expanding the role of sustainability in creating long-term business value.
Jennifer Steinmann, Deloitte Global Sustainability Business leader, emphasized that companies in the moderate middle have significant potential to drive greater change: “These companies are positioned to take advantage of market momentum by building on their existing experience and implementing deeper transformational actions that will accelerate progress toward global climate goals.”
Conclusion
The Deloitte 2024 CxO Sustainability Report reveals that climate change remains a critical issue for business leaders worldwide, with significant investments being made to address environmental challenges. As more organizations implement technological solutions and transform their business models to align with sustainability goals, the report indicates that the momentum is growing. However, it also highlights the need for continued action to ensure that businesses can seize the economic opportunities of a net-zero future while mitigating the risks posed by climate change.
Related Article: From ‘Wait and See’ to ‘Lead and Succeed’: Global Standards Are Shaping the Future of ESG Reporting – Deloitte Report
