Most companies are committed to net zero emissions. But what about the relationship between long-term ambitions and concrete measures?
The Capgemini Research Institute has investigated this question in a new study. We surveyed 2,004 managers in twelve countries of 668 companies with annual revenues of more than one billion US dollars across all sectors. The result? Relatively reassuring.
“Only a few companies see sustainable transformation as a source of value creation. Many fear short-term financial burdens. However, they recognize their joint responsibility for achieving climate protection goals,” says Werner Kirsch, Sustainability Lead at Capgemini in Austria. “All companies need to realign their business models to develop sustainable products and services. For this investment in the future, they need milestones and a realistic and comprehensive sustainability strategy.
According to the study, sustainability goals are certainly integrated into corporate strategies. Globally, nearly two-thirds (64%) of executives say sustainability is on the agenda of every board member at their company.
However, there is still a gap between ambitions and concrete climate protection measures: just under half (49%) have defined a set of climate protection initiatives for the next three years. Just over a third (37%) of global respondents say their organization is transforming its operating model to make it more sustainable.
Overall, investments in decarbonization activities at companies with sales above $20 billion account for an average of 0.41% of total sales. Smaller companies with sales between $1 and $5 billion invest the most, averaging 2.81% of total sales. For comparison, 500 of the largest publicly traded US companies spent an average of 4% on R&D in 2020.
The study findings show that many companies lack a collective vision and cross-functional coordination of their sustainability efforts, and that different teams still work in isolation from each other. For example, only 43% of global respondents say that sustainability-related data is available and shared within their organization. For 48% of companies, this data is also available to external stakeholders such as investors, activists, government agencies and consumers. Less than half (47%) of companies worldwide are looking to new talent with strong sustainability skills.
