Climate change: buy-in on sustainability business case triples among high-level executives, survey shows

The proportion of top corporate executives who recognise the business case for sustainability has tripled in the last year, according to a survey, amid record-breaking temperatures and climate disasters coupled with more stringent regulation.

More executives also acknowledge that the benefits of incorporating sustainable business practices outweigh the costs, and view sustainability as more than simply a financial obligation, said the survey of more than 2,000 high-level leaders, published on Wednesday.

The percentage of executives across industries who agree that the business case for sustainability is clear increased to 63 per cent from 21 per cent a year earlier, according to the survey by Capgemini Research Institute, a unit of Paris-headquartered consulting firm Capgemini. This means they believe companies can realise economic success while performing on environmental and social aspects.

“The summer and fall of 2023 were the most disturbing in terms of record high temperatures across continents, and extreme weather events bringing unprecedented damages,” said Cyril Garcia, head of global sustainability services and corporate responsibility at Capgemini. “The consequences of climate change are becoming impossible to ignore, and so is the future cost of not taking action.”

The number of executives expecting to increase future revenue by adopting sustainability strategies grew to 75 per cent in 2023 from 52 per cent in 2022, according to the survey, which collected views in August and September from 2,151 executives at director level and above in 718 organisations with at least US$1 billion in annual revenue. The companies represented 11 industries and 13 countries in North America, Europe and Asia-Pacific.