More than four in five organisations are planning to increase investment in environmental sustainability, up eight percentage points since last year. Compliance with regulations is driving this, as are profitability, cost savings, and operational efficiency albeit to a lesser extent.
The Capgemini Research Institute’s research also found two thirds of executives are under increasing pressure to demonstrate credible, science-based progress. Only 21% have developed detailed transition plans with interim targets and capital allocation, however.
Perhaps not surprising is the finding that progress is being hindered by “budget constraints, inadequate data and measurement systems and operational silos”.
Artificial intelligence (AI) is being used to process data and create efficiencies. The environmental impact of the technology is also being discussed at boardroom level but fewer than one in three organisations are taking steps to mitigate this. The number of executives believing that the benefits of Gen AI outweigh its environmental costs dropped from 67% in 2024’s survey to 57% this year.
Geopolitics also continues to slow sustainability efforts down for two thirds of those surveyed for the report.
“[M]any companies are facing a reality check,” explained Cyril Garcia, head of global sustainability services and corporate responsibility 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.”
On the consumer front, scepticism is rising sharply: 62% of consumers believe companies are engaging in greenwashing, up from a third in 2023.
Only a quarter of consumers consider sustainable products affordable, while just 16% feel they have access to sufficient sustainability information.
