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Sustainability

A world in balance 2024: Accelerating sustainability amidst geopolitical challenges

Report from the Capgemini Research Institute

Organizations worldwide are making significant strides in environmental and social sustainability.

To understand the progress being made, the Capgemini Research Institute conducted an extensive survey involving 2,152 executives from 727 organizations with annual revenues exceeding $1 billion across 13 countries worldwide. They also surveyed 6,500 consumers from the same 13 countries to gain a comprehensive view of sustainability from both organizational and consumer perspectives.

The results of this survey have been collected in the third edition of our A world in balance series. By comparing this data with previous years’ surveys, we examine the progress organizations have made in environmental and social sustainability over the past three years and identify the challenges they face.

A world in balance 2024: Accelerating sustainability amidst geopolitical challenges highlights the strides made in areas such as circularity, sustainable design, measurement and data sharing, water stewardship, biodiversity, social sustainability, and sustainability education and training. Despite these advancements, challenges remain, particularly in addressing Scope 3 emissions and effectively engaging consumers.

The report has found that regulations have driven sustainability efforts and accelerated measurement and tracking capabilities. However, many organizations are still unprepared for upcoming directives like the EU Corporate Sustainability Reporting Directive (CSRD).

Business to Planet Connect at Climate Week NYC

As part of Climate Week NYC 2024, Capgemini is proud to host an event on how companies can adopt a ‘Business to Planet’ mindset, which embraces sustainability as an enabler, not a blocker, of value.

Executives recognize the importance of climate tech, including low-carbon hydrogen, industrial carbon capture, and electrification, in reducing greenhouse gas emissions and achieving other sustainability goals. Two-thirds of executives agree that data and digital technologies are accelerators for climate tech adoption. Although high costs, skills shortages, and regulatory uncertainties pose challenges.

 The research reveals that sustainability is geopolitically and politically sensitive. Sixty-five percent of executives cite current geopolitical tensions as barriers to sustainability investments. Concerns about the uncertain political environment in the US and other regions also impact sustainability projects.

Consumer skepticism towards corporate sustainability claims is on the rise, with 52% believing that organizations are greenwashing their sustainability initiatives, up from 33% in 2023. Transparency and accountability are crucial to rebuilding trust.

Our report offers actionable insights for decision-makers to navigate these complexities. It emphasizes the importance of preparing for regulatory changes and geopolitical uncertainties and prioritizing water and biodiversity. Organizations can build trust  and drive innovation and business value by prioritizing customer centricity in  sustainability strategies, integrating circularity in the value chain, investing in climate tech and digital technologies, and ensuring the achievement of sustainability goals are an enterprise-wide focus.

Download the full report to learn more.

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