• Capgemini's report sheds light on businesses and sustainability amid global challenges.
• Consumers are demanding more transparency in company operations.

According to Capgemini’s latest report, global challenges are not hampering companies' sustainability efforts. However, two-thirds of executives agree they cannot meet sustainability goals without climate technology.

The Capgemini Research Institute’s latest report, ‘A world in balance 2024: Accelerating sustainability amidst geopolitical challenges’ says that over the last three years, companies have improved in areas like water conservation, sustainable design, and recycling. While there are challenges in reducing indirect emissions (Scope 3) and gaining consumer trust.

More Efforts, but Less Investments

In 2024, 84 per cent of executives say they are on track with their carbon reduction goals, and recycling and reducing fossil fuel practices have spiked since 2022. Despite increased efforts, the overall investment in sustainability has reduced slightly, from 0.92 per cent in 2023 to 0.82 per cent now.

Doubtful Consumers

Even though companies are ramping up their efforts, consumers are still sceptical about their commitments. They want businesses to commit to bigger roles in reducing emissions and think that many are exaggerating their green claims.

Geopolitical Impact and Regulations

The European Union (EU) regulations are supporting companies in measuring their sustainability efforts. But, when it comes to Scope 3 emissions, they are still struggling to report.

Geopolitical issues such as tensions between countries, wars, and conflicts are impacting businesses and causing disruption. 69 per cent of executives are concerned about how US politics affect sustainability initiatives.

Cyril Garcia, Capgemini’s Head of Global Sustainability Services and Corporate Responsibility and Group Executive Board Member, said: “This year’s report shows sustainability projects continuing to build momentum in 2024 despite current headwinds. Business leaders have the power and the responsibility to steer us towards a more sustainable economy. Water stewardship, biodiversity preservation, and circular practices are now established as key business imperatives.

"Executives are being very pragmatic, and CO2 reduction must now be translated into cost savings. We continue to see sustainability efforts bolstered by new climate tech innovations and regulations. The best way to build trust and credibility with consumers is by demonstrating tangible outcomes and planning for a future with sustainability at its heart.”

Overall, the organisations are advancing their sustainability goals, even though challenges remain, such as political pressures and consumer scepticism, which could impact future progress.

To access and study the full report, click here.

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Source: Capgemini