69% of executives say that anticipating stricter future regulations is a key driver of sustainability initiatives: Capgemini Report
- Regulations drive sustainability: 69% of executives see future regulations as key motivators, up from 57% last year.
- Geopolitical tensions slow investments: Two-thirds of organizations report geopolitics as a barrier to sustainability.
- Consumer skepticism grows: 52% of consumers believe companies are greenwashing, up from 33% in 2023.
Organizations are pushing forward with sustainability initiatives despite geopolitical turbulence. According to Capgemini Research Institute’s latest report, A World in Balance 2024: Accelerating Sustainability Amidst Geopolitical Challenges, regulatory frameworks and technology are critical in this journey.
Climate Tech and Regulations
Executives recognize the growing need for climate technologies to achieve sustainability goals. “Business leaders have the power and the responsibility to steer us towards a more sustainable economy,” says Cyril Garcia, Capgemini’s Head of Global Sustainability Services. Regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) are accelerating these efforts. 73% of executives believe the CSRD is honing sustainability measurement and tracking capabilities.
However, organizations are not fully prepared for upcoming requirements, especially for Scope 3 emissions. Only 36% are ready to report downstream emissions next year, compared to 86% for Scope 1.
Geopolitics Impacting Progress
Geopolitical tensions are also slowing investments. Nearly two-thirds of executives cite geopolitics, including the US-China conflict and European energy crisis, as barriers to their sustainability goals. Swedish executives are particularly concerned, with 75% seeing political instability as a significant risk.
Related Article: EFRAG and BCG Report Highlights Early ESRS Implementation Practices and Challenges Among 28 Large EU Companies, Ahead of CSRD Compliance
Growing Consumer Skepticism
Despite efforts, public trust is waning. Over half of consumers believe companies are greenwashing their sustainability initiatives, a sharp rise from 33% in 2023. Transparency is essential to rebuild trust. Garcia notes that “the best way to build trust and credibility with consumers is by demonstrating tangible outcomes.”
Download the full report for a deeper analysis of sustainability trends and challenges.
