GHG Emissions - January 25, 2022
Deloitte Research Shows More Business Concern on Climate Change
Global C-level business leaders (or CxOs) are increasingly concerned about climate change though they are struggling to fully embed sustainability into their core business strategies, operations, and cultures, according to Deloitte's 2022 CxO Sustainability Report: The Disconnect Between Ambition and Impact.
The report shows that 89% of CxOs agree there's a climate crisis and 63% say their organizations are very concerned.
Deloitte engaged with 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 battle against climate change isn't a choice, it's billions of choices," says Deloitte Global CEO Punit Renjen in a statement. "No action is insignificant, but certain activities and decisions 'move the needle' more than others, and those bolder actions from business leaders are needed now—while there's still time to limit the damage. It's time to prove we're up to the challenge."
The impacts of climate change are weighing heavily on executives' minds. The majority or 79% of CxOs believe the world is at a tipping point when it comes to responding to climate change, which is up by 20 percentage points from the survey conducted eight months prior, underscoring the growing importance of acting swiftly. In addition, 88% of CxOs are optimistic that with immediate action, the world can limit the worst impacts on the planet. That is similarly higher than 63% eight months prior.
The data shows CxOs are feeling pressure on a number of levels with almost all respondents (97%) indicating their companies have already been negatively impacted by climate change and about half said their operations have been impacted (e.g., disruption to business models and supply networks worldwide) and stakeholder groups, including regulators, shareholders, consumers, and employees—are all adding to the pressure to act.
Companies are acting: 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.