Climate change tops priority list for global CxOs
Half of business leaders have been leveraging climate technologies for decarbonisation.
Climate change remains a top priority for global C-suite business leaders (CxOs), surpassing concerns like political uncertainty and talent competition, Deloitte’s CxO Sustainability Report revealed.
The report, which surveyed 2,100 CxOs across 27 countries, also found that whilst business leaders are optimistic about climate action, more progress is needed to drive substantial change.
CxOs see climate action as a catalyst for technological implementation and innovation, with half of leaders already leveraging climate technologies to meet decarbonisation goals, whilst another 42% plan to do so within two years. Innovation in business operations and offerings is seen as the top benefit of sustainability efforts in the next five years (38%).
Leaders also see climate action as an opportunity to drive business value, with 92% believing their companies can grow whilst reducing emissions. Supply chain efficiency, resilience, and improved operating margins were also seen as key benefits of climate initiatives, Deloitte added.
Sustainability is also expected to play a significant role in talent recruitment and retention, aligning with younger generations’ environmental concerns.
A separate Deloitte survey showed that over four in 10 Gen Zs and millennials have changed or plan to change jobs due to environmental impact concerns. CxOs recognise the need to prepare workers for green jobs, with 49% actively working on this.
Global executives are increasingly focused on ensuring a just transition to a low-carbon economy, with 55% of CxOs considering equity and shared benefits from climate action as extremely important, up from 46% last year.
Whilst many organisations are taking steps to address climate change, progress has been uneven, the report noted.
Over half are focusing on two to three actions such as tying senior leaders’ compensation to sustainability performance or developing climate-friendly products. About 17% have implemented four to five such actions, whilst more than a quarter have taken minimal or no action.
The "moderate middle" group, which has implemented some actions, expects climate change to significantly impact their strategy and operations in the next three years, indicating they may soon scale up efforts.
Meanwhile, the report said leaders should focus on their strengths, seek new partners, and explore how sustainability can add business value to boost climate action and prepare for a net-zero economy.
