What are the conclusions of Deloitte’s „2022 CxO Sustainability Report”?
Deloitte experts asked more than 2,000 board members from 21 countries about their concerns and the steps taken to minimize the effects of climate change. The results of these studies demonstrate a clear discrepancy between the declarations made and the actions taken.
Nearly two-thirds of CEOs said their companies are very concerned about climate change. 79% of respondents believe that the world is at a critical moment and it is necessary to act immediately. In a similar Deloitte survey from the beginning of 2021, 59 percent declared so, which means a sharp increase in fears and mobilization by 20 percentage points. At the same time, 88 percent of respondents – CEOs and directors – are still optimistic about the future. In their opinion, the rapid adoption of pro-climate initiatives may limit the effects of changes. In 2021, this belief was expressed by 63% of respondents. Therefore, we observe a significant increase in concerns about the climate situation among executives, while at the same time being convinced of the effectiveness of pro-ecological activities.
The Deloitte study shows that board members feel pressure and perceive a threat on several levels. Almost all respondents (97%) indicated that their companies had already been negatively affected by climate change, while half admitted that it had affected operations (e.g. disruption of the company’s operations and supply networks around the world). 81% of board members have personally felt the effects of climate change (e.g. heat, strong winds, fires) in the last 12 months. In addition, stakeholder groups including regulators, shareholders, consumers and employees are putting pressure on companies to take action.
Two-thirds of respondents say their companies use environmentally friendly materials and save energy. More than half use energy-saving devices and technologies. Most consciously and intentionally limit the number of business trips and conduct pro-climate training for employees.
While all sustainability activities matter, the study identifies five initiatives that (especially when taken together) are causing significant change and demonstrate a deep understanding of the benefits of sustainability. These are:
- development of new environmentally friendly products and services;
- requiring suppliers and business partners to meet certain environmental criteria;
- modernising plants to make them more resilient to the effects of climate change;
- taking into account pro-climate issues in lobbying and political activities;
- making management compensation dependent on the implementation of sustainability initiatives.
Companies very rarely decide on these initiatives, and more than a third of respondents implemented only one of them. Despite the consistently high level of concern for the environment and optimism about change, there is a growing need for more significant action to mitigate the worst effects of climate change.
Board members of companies point to increased recognition, improved reputation and customer satisfaction, as well as employee well-being and morale as three of the top five benefits that sustainability initiatives bring. This proves that many of them consider this type of activity to be beneficial in building good relationships with key stakeholders. The positive effects of the „green” transformation of companies in the form of revenue growth, increase in the value of assets or operating margin are much less often noticed, which shows that sustainable development of companies is an activity spread over years.
Projekt otrzymał dofinansowanie z Norwegii poprzez Fundusze Norweskie 2014-2021, w ramach programu „Dialog społeczny – godna praca”.
