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82% of organisations now plan to increase investment in environmental sustainability in the next 12–18 months as a core future-proofing strategy

The majority of organisations have been affected by climate disruption, yet executives are struggling to actively prepare for increased climate risks

18 Sep 2025

Paris, September 18, 2025 The fourth edition of the Capgemini Research Institute’s report, “A world in balance 2025: Unlocking resilience and long-term value through environmental action,” released today, finds that organisations remain committed to sustainability despite global uncertainty. In fact, three quarters of them say it is a core future-proofing strategy for their organisations to drive long-term competitiveness, innovation, and resilience. However, the report reveals a gap between perceived preparedness and actual resilience, suggesting organisations are confusing planning with concrete climate adaptation.

Organisations continue to prioritise sustainability despite global uncertainty

More than 4 in 5 organisations are planning to increase investment in environmental sustainability, up 8pp since last year. Compliance with regulations remains the lead factor driving sustainability initiatives, followed by business value – such as profitability, cost savings, and operational efficiency. Despite the business case, two thirds of executives say they are under increasing pressure to demonstrate credible, science-based progress. Yet only 21% of organisations have developed detailed transition plans with interim targets and capital allocation. Internally, progress is hindered by budget constraints, inadequate data and measurement systems and operational silos. Externally, nearly two thirds of executives agree that geopolitics is currently slowing down sustainability investments and projects, a share that is stable since last year.

Climate strategies are in place, but execution remains limited across organisations

In today’s global environment characterised by global warming and climate disasters, organisations are feeling the strain of climate impacts, with more than seven in ten executives reporting disruptions to supply chains, noting further disruptions to production, and suffering from raw material shortages. Additionally, two-thirds foresee difficulties in managing insurance or financial risks. While the majority say they prioritise climate adaptation, more than half consider their organisation underprepared for the impacts of climate change. The disconnect between perceived readiness and actual resilience suggests that few organisations are taking adequate tangible action, with only 38% upgrading infrastructure, 31% shifting production to less climate-vulnerable regions and only 26% redesigning products.

Although sustainability regulations are putting less pressure on organisations, business leaders still see sustainability as a core driver of business value. However, with global uncertainty and constrained budgets, many companies are facing a reality check,” says Cyril Garcia, Head of Global Sustainability Services and Corporate Responsibility, and Group Executive Board Member at Capgemini. “With climate risks increasingly high on the corporate agenda, business leaders need to adopt a pragmatic, operational approach and urgently implement concrete, financed transition and adaptation measures. This will not only build true resilience, but also fuel innovation and competitiveness.”

AI’s environmental footprint under closer scrutiny

AI is playing a significant role in advancing sustainability, with nearly two thirds of executives reporting that their organisations use AI to achieve their sustainability agenda. However, despite its ability to process data, reduce resource consumption and create efficiencies to help drive sustainability, AI has its own environmental impact. 57% of executives acknowledge that generative AI’s (Gen AI) environmental impact is being discussed in boardrooms, but less than a third report having taken steps to mitigate it. The research indicates that there is a growing caution around its environmental footprint, with the number of executives believing that the benefits of Gen AI outweigh its environmental costs dropping from 67% in 2024 to 57% in 2025.

A widening credibility gap between brands and consumers

On the consumer front, skepticism is rising sharply – more than six in ten (62%) consumers believe companies are engaging in greenwashing, up from a third in 2023 and over half in 2024. Further, more than three quarters believe corporations should do more to reduce GHG emissions. This highlights the need for transparent and evidence-backed sustainability communication. In addition, only a quarter of consumers consider sustainable products affordable, and just 16% feel they have access to sufficient sustainability information.

To access the full report: https://www.capgemini.com/insights/research-library/sustainability-trends-2025

Report Methodology

The Capgemini Research Institute conducted a global survey in June and July 2025, reaching 2,146 executives from 716 organisations – each with over $1 billion in annual revenue and a combined annual revenue of approximately $10.7 trillion – across 13 countries in North America, Europe, and Asia-Pacific, and spanning 12 industries and sectors. Additionally, the Institute surveyed 6,566 consumers aged 18 and over across the same countries and conducted interviews with 15 senior executives from leading organisations worldwide.

About Capgemini

Capgemini is a global business and technology transformation partner, helping organisations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 350,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2023 global revenues of €22.5 billion.

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About the Capgemini Research Institute

The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom and the United States. It was recently ranked #1 in the world for the quality of its research by independent analysts.

Visit us at https://www.capgemini.com/researchinstitute/