Sustainable Business Trends
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91% of companies that are integrating sustainability strategically expect increased revenue in 2025, compared to 74% of other respondents, according to a BDO survey of 500 Chief Financial Officers (CFOs) at U.S. companies. The survey also finds that 77% of companies plan to maintain or increase their sustainability investments this year; that 21% of companies are working to integrate sustainability initiatives into business strategy (vs. 70% focusing on stakeholder expectations or regulatory compliance); and that 47% of CFOs believe their involvement in ESG strategy and execution will increase in the next 12 months. (March 2025)
Limited accountability and awareness of corporate emissions target outcomes (Nature Climate Change) — Research based on CDP disclosures from 1,041 firms found that companies that failed to meet their 2020 emissions targets or did not disclose the outcomes did not suffer adverse consequences (whether in the form of market reaction, media sentiment, environmental scores, or shareholder proposals). Of the 1,041 targets ending in 2020 (collectively covering 2.5 billion tons of Scope 1 emissions), 8.5% (88) were not achieved, while 31% (320) disappeared (with no outcomes disclosed). Only three of the failures were covered by the media (after firms published press releases leading with this information). Initial announcements, on the other hand, were frequently met with improvements in media sentiment and environmental scores. The study raises concerns for the accountability of 2030 and 2050 emissions targets. (Feb 2025)
JUST CAPITAL — Announced its JUST 100 list for the 2025 rankings of America’s most just companies, in partnership with CNBC. Drawing from data from 940 companies across 36 industries, the Top 100 were scored for 17 issues affecting workers, customers, shareholders, communities, and the environment (such as paying a fair wage, treating customers fairly, and prioritizing sustainability). This year 19 CEF members ranked in the JUST 100 list, and six in the Top 20, including: Hewlett Packard Enterprise (#1 for the second year in a row); HP, Inc. (#2); Bank of America (#3); Trane Technologies (#6); Applied Materials (#13); and Alphabet (#19). (Feb 2025)
75% of corporate respondents said their organizational leadership views ESG positively, according to new research by Chief Executives for Corporate Purpose (CECP) surveying companies across ten countries and regions. 51% said the backlash on ESG has had no impact on their ESG strategies,while 26% said they have increased transparency and reporting, 16% reduced public discourse but continued investing, and 7% stepped back from ESG due to risk. 25% also reported that they felt very prepared for new EU reporting requirements, while 55% felt somewhat prepared, and 20% not very prepared. (Jan 2025)
76% of companies reported having changed business strategy or taken material action in response to environmental issues or policies and 67% in response to societal issues, according to a survey of 3,200 CEOs and business leaders by AlixPartners. In both cases, about three-quarters said the effect on financial performance was significantly or somewhat positive. 86% of executives also saw diversity and inclusion as a competitive advantage. (Jan 2025)
ERM Transformation Survey: Tackling the Transformation (ERM Sustainability Institute) — Surveys 1,475 managers and executives across industry sectors to examine progress on operationalizing sustainability goals and to identify barriers and how to overcome them. Insights include (Dec 2024):
- 50% of all respondents say their company is making very good or excellent progress on sustainability initiatives overall (climate, nature, and social issues).
- 57% rate their company’s progress on Equity & Social Issues as high, compared to 47% on Climate & Decarbonization and 45% on Nature & Biodiversity.
- The top three external barriers to sustainability included: expensive or unavailable required technology (43%); lack of forceful regulations (41%); and limited shareholder interest (40%).
- The top three internal barriers to sustainability included: a lack of financial incentives tied to sustainability performance (48%); lack of staff motivation or know-how (38%); and lack of training and qualified talent (38%).
- The five highest rated solutions to speed up sustainability progress included: Better staff training (72%); sustainability-tied compensation incentives (71%); operational integration of sustainability goals (71%); a dedicated budget for sustainability (70%); and increased investments in R&D and technological innovation (69%).
State of Sustainability Readiness Report 2024 (IBM) — Surveyed 2,790 business leaders across 15 industries on the use of AI and information technology (IT) solutions to improve their sustainability efforts. Insights include (Nov 2024):
88% of leaders plan to increase IT sustainability investments over the next 12 months.
61% said they invest in IT sustainability initiatives based on perceived opportunities, while 7% for cost mitigation.
90% believe AI can positively impact sustainability goals, however, only 44% are currently using AI for sustainability.
Climate risk, energy use, and availability of skilled staff ranked as organizations’ top three sustainability challenges, at 31%, 31%, and 30% respectively.
50% believe their data to measure sustainability KPIs is not very mature.
The maturity of global business travel sustainability efforts across all industry sectors was scored at 1.3 out of 5, according to the GBTA Sustainability Acceleration Global Benchmark. The results, based on efforts at 241 companies (spending over $14 billion on business travel cumulatively) found that large travel programs (over $100 million spent), scored highest (2.5) and that European programs scored better than North American programs (1.7 vs. 1.0). The study found 79% of companies are evaluating the necessity of trips and 62% are tracking business travel emissions, but only 33% are choosing travel suppliers based on climate criteria and just 14% have established internal carbon budgets (and 7% internal carbon fees). (Nov 2024)
A world in balance 2024: Accelerating sustainability amidst geopolitical challenges (Capgemini Research Institute) — Examines progress made in environmental and social sustainability, surveying 2,152 executives from 727 companies and 6,500 consumers. Insights include (Sept 2024):
- 71% of executives say their organization has employees with eco-design and sustainable design skills, up from 51% in 2022.
- 75% say their organization has implemented a water stewardship program, up from 55% in 2022.
- 68% share sustainability data across the organization, up from 43% in 2022.
- 69% have redesigned products to remove fossil fuel feedstock sources, up from 47% in 2022.
- 69% say that pre-empting stricter future regulations is a key driver of sustainability initiatives, up from 57% in 2023.
- 65% cite current geopolitical tensions as barriers to sustainability investments.
- 52% of consumers believe that companies are greenwashing their sustainability initiatives, up from 33% in 2023.
Companies that more positively align with the United Nations’ Sustainable Development Goals (SDGs) are less likely to become involved in scandals along ESG issues, according to a new study based on over 7,700 companies, using Robeco’s SDG Score methodology. Each one point increase in SDG score (based on a -3 to +3 scale) is associated with a 5.8% decrease in the odds of being involved in a scandal, an 11% decrease in the number of scandals, and a 17% decrease in the probability of a severe scandal in the next period. (Sept 2024)
TPI State of Transition Report 2024 (Transition Pathway Initiative Centre (TPI Centre)) — Analyzes the Carbon Performance Assessment of 409 companies and Management Quality progress of 1,027 of the world’s highest-emitting public companies (collectively worth around $39 trillion). Key findings (Sept 2024):
- 30% of companies have 2050 climate targets aligned with 1.5°C, up from 7% in 2020.
- The sectors most aligned with 1.5°C or below 2°C are: diversified mining (50%), steel (46%), and electricity (41%). The least aligned are food producers (8%) and oil & gas companies (6%).
- While 66% of European companies are aligned, 82% of Chinese companies are either not aligned or lack suitable disclosure.
- 57% of companies recognize climate change as a relevant business risk and/or opportunity and have developed a policy commitment to act, set an emission reduction target, and disclosed Scope 1 and 2 emissions (reaching Level 3 out of 5).
- No company satisfied all indicators of the newly added Level 5 (added to differentiate best performing companies), meaning none assessed have created a detailed actionable transition plan aligning business practices and capital expenditure decisions with decarbonization goals.
- Companies headquartered in high-income countries had better performance than companies in middle-income countries, possibly explained by differences in regulations, availability of resources, and corporate governance norms.
Companies rated in the EcoVadis Network tend to improve their sustainability scores over successive rating cycles, according to the latest edition of the network’s Business Sustainability Index. The Index explores the trends behind four years of data encompassing 125,000+ supplier sustainability ratings delivered to 1,200 procurement teams across four themes: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. Key findings include (Sept 2024):
- The average score on a company’s first rating is 46.7, compared to 55.1 for companies with multiple EcoVadis Ratings.
- Companies score highest on average in the Labor & Human Rights theme, at 54.6. All regions have improved performance in this theme, with an average score now above 50.
- Most companies remain in the risk range for the Sustainable Procurement theme, with a 41.2 average.
- The global Environment average increased by 2.1 points in 2023, more than any other theme.
- Progress in the Ethics theme has stalled, with SMEs and large companies improving their average score by just 0.1 point over the past year.
How corporate climate change mitigation actions affect the cost of capital (Corporate Social Responsibility and Environmental Management) — Analyzes how corporate climate actions, such as mitigation performance, climate-related disclosures, and commitments, affect the costs of a company to finance it operations. The study, based on data from approximately 2,100 Japanese listed companies from 2017 to 2021, finds that companies with higher emissions face higher costs for borrowing and raising money. Those that follow Task Force on Climate-Related Financial Disclosures (TCFD) guidelines and openly share climate-related information benefit from lower capital costs. However, corporate commitment to climate change (as opposed to climate actions) showed no significant correlation with the cost of capital. And the relationship between climate mitigation actions and the cost of capital was also more significant in industries in which climate change is defined as a material issue. (July 2024)
The global green economy reached a market capitalization of over $7 trillion in 2023, making it the fourth largest sector after Healthcare, Industrials, and Technology, according to a new report by LSEG (which counted the green economy as a standalone sector aggregating green revenue data from over 19,000 companies). The green economy’s 10-year compound annual growth rate (CAGR) was 13.8% (compared to 8.3% for global equity markets). Within the green economy, Energy Management and Efficiency has been the largest and best-performing sector, growing at 17% CAGR over the last 5 years, and now accounts for 46% of the green economy in listed equities and 30% of proceeds from green bonds. (July 2024)
2024 Sustainability Action Report (Deloitte) — Surveys 300 executives at publicly owned companies around their sustainability actions. Key insights include (July 2024):
- 98% of executives reported some level of progress toward company sustainability goals and targets in the past year.
- 52% reported having created a cross-functional ESG working group, up from 21% in 2022.
- Of those with ESG working groups, 38% described their sustainability progress as significant (compared to 10% without).
- 92% reported they are preparing for potential increased disclosure requirements.
- 74% plan to invest in new technology or tools over the next year to enable improved ESG disclosure capabilities.
- Of the business outcomes from enhanced ESG reporting, the top listed was Brand Reputation (at 20%); then Enhanced Talent Attraction (15%); and Pricing Premiums (14%). 51% said they expected internal benefits like improved operational efficiencies and reduced risks.
Companies that deliver both stakeholder value and financial value had the highest shareholder return, based on the performance of the S&P 500 over a 10-year period, according to Bain & Company research. Companies that had high financial value creation and high value creation for customers, employees, suppliers, and communities had shareholder returns grow 338% over 10-years, while those with low value creation of both types had growth of only 126%. (July 2024)
85% of companies see sustainability as a value creation opportunity, according to a survey of over 300 companies by Morgan Stanley. 80% see support from investors as very or somewhat important for their sustainability strategy, and 92% expect climate change to impact their business model by 2050 (with 23% having already seen its effects on their business). Over 80% also believe that sustainability is somewhat or very likely to drive strong cash flows, higher profitability, and higher revenue growth in the next five years. (May 2024)
87% of ESG practitioners find it challenging to adapt to reporting processes to comply with new regulations, with 59% of respondents agreeing that ESG regulation has disrupted their companies’ reporting processes, according to a survey of over 2,200 ESG professionals by Workiva. 86% say they are either at or over capacity in relation to their existing reporting. 88% also agree having a strong ESG reporting program will give their organization a competitive advantage. (May 2024)
Get the money moving: Meeting the European corporate transition challenge (CDP and Oliver Wyman) — Assesses how substantive changes are in moving toward greener business models, based on 1,600 European companies disclosing through CDP (representing 89% of European market capitalization). Key findings (April 2024):
- 70% of companies dedicated less than 25% of capital expenditures to projects that are aligned with their transition plan or a sustainable finance taxonomy.
- Utilities could fall €285 billion ($308 billion) short by 2030 of reaching the €1.9 trillion ($2.05 trillion) required in capital expenditures to replace conventional generation capacity with renewables.
- While two-thirds of financial institutions are taking steps to align their portfolios to a 1.5°C pathway, only 9% have set specific goals related to deforestation and 1% for water security.
- 20% of European businesses are expecting their customers will switch to alternative products or suppliers if investment cannot meet demand for green products and services.
- While 87% of steel companies offer some type of low-carbon product, these account for only 22% of revenue. As a result, green steel production is expected to be as much as 31% short of demand by 2035.
The “E” in ESG has seen a 24% decline in communications at the 50 largest U.S. based publicly traded companies from 2021 to 2023, according to a study by the USC Center for Public Relations. The same companies have also reduced the visibility of ESG, shifting public communications away from the general public, with 23 of the 50 relocating ESG to investor areas of their websites. (April 2024)
Global Impact at Scale: The S in ESG (Chief Executives for Corporate Purpose (CECP)) — Explores international trends in corporate purpose strategies focusing on the “S” in Environmental, Social, and Governance (ESG), especially around Diversity, Equity, and Inclusion (DEI), employee engagement, and customer security. Some highlights (Feb 2024):
- DEI policies are critical in attracting and retaining talent and building trust in employers, and 62% of employees believe employers should dedicate more efforts to DEI.
- DEI and employee engagement significantly influence a company’s ESG performance.
- Executive teams with more than 30% women are more likely to outperform those with fewer or no women.
- The median number of companies (of 277 surveyed) employing persons with disabilities was just 2%, while U.S. employment rates for persons with disabilities was 21.3%, revealing challenges for persons with disabilities in securing employment opportunities.
- 44% of companies still lack a formalized cybersecurity risk management system.
Nearly 400 companies (out of over 21,000) were recognized as global leaders in environmental transparency on CDP’s annual A Lists, based on their disclosures on climate change, forests, and water security. Just 10 of the 2,300+ companies requested to disclose against all three questionnaires were awarded a triple A (scoring A’s in all three), however, CDP “regularly raises the bar” for A-level performance. Overall, disclosure through CDP grew 24% last year, and A List companies rose by 14%. (Feb 2024)
JUST CAPITAL — Released its JUST 100 List for 2024 in collaboration with CNBC. Of 937 large public companies, 100 were scored for twenty just business behaviors, including paying a fair, living wage; protecting worker health and safety; and minimizing pollution (based on the polling of 3,001 Americans). This year, CEF member Hewlett Packard Enterprise took #1 for the first time, and seven CEF member ranked in the top 25, including Bank of America (#2), Ecolab (#7), HP, Inc. (#13), JP Morgan Chase & Co. (#16), Apple (#17), and Salesforce (#23). In total, 21 CEF members ranked in the top 100. (Feb 2024)
2024 Edelman Trust Barometer (Edelman) — Business is still the most trusted institution globally, at 63%, up from 62% in 2023. NGOs were the second most trusted at 59%, then government at 51%, and media at 50%, according to this survey of 32,000 respondents from 28 countries. 53% of respondents trust companies headquartered in the U.S. (down from 62% in 2014), while companies headquartered in Europe are trusted at 60% (down from 68%) and in China 30% (down from 33%). 61% of respondents worry that business leaders are purposely trying to mislead people, compared with 63% for government leaders and 64% for journalists. 59% trust businesses with introducing innovations into society (vs. 54% for NGOs and 50% for government). And 71% of respondents trust green energy as an innovation, compared to 50% for artificial intelligence, and 32% for genetically modified foods. (Jan 2024)
CORPORATE KNIGHTS — Released its 20th annual Global 100 List, ranking the world’s most sustainable companies along 25 indicators, out of 6,000 public companies with revenues of over $1 billion. In 2024, top-ranked firms allocated 55% of their investments to sustainable projects, up from 47% last year, and compared to just 17% of investments of publicly traded companies with more than $1 billion in revenue. The top ranked company was Sims Ltd, an Australian waste management company that moved up from #14 in 2023. CEF Members in the Global 100 include: Schneider Electric (#7), Trane Technologies (#23), Cisco (#64), HP Inc. (#67), Apple (#71), Unilever (#76), Hewlett Packard Enterprise (#81), and Prologis (#87). (Jan 2024)
NEWSWEEK / STATISTA — Published its “America’s Most Responsible Companies 2024” list, ranking the 600 largest U.S. public companies based on their ESG performance (up from 500 in previous years). Noteworthy this year is that the company in the 600th spot received a higher score than last year’s 500th. And 243 companies have placed on the list for at least four consecutive years. CEF members included in the top 50 include: HP (#3), Cisco Systems (#4), Hewlett Packard Enterprise (#5), Applied Materials (#7), Qualcomm (#13), Microsoft (#34), Ecolab (#37), Moody’s (#39), and Dell Technologies (#40). (Dec 2023)
State of the Transition 2023 (Breakthrough Energy) — Maps out how to decarbonize five sectors that account for most GHG emissions (electricity, manufacturing, agriculture, transport, and buildings). The report looks at the latest technologies, policies, and challenges, drawing examples from companies that Breakthrough Energy Ventures (the venture capital arm of Breakthrough Energy) has invested in. Specific topics include: renewable energy, steel and cement, livestock and sustainable crop production, electric vehicles, biofuels, air conditioning, and heat pumps. (Nov 2023)
State of Climate Action 2023 (Systems Change Lab) — Offers a comprehensive roadmap of how to close the global gap in climate action for sectors accounting for 85% of global GHG emissions. The report assesses 42 indicators and finds only one, the share of electric vehicles in passenger car sales, is on track to reach its 2030 target. Of the other indicators, six are off track (moving in the right direction but not fast enough, 24 are well off track, six are headed in the wrong direction, and five lack data. The report also finds that: solar and wind, while growing at 14% per year in recent years, need to grow 24% per year to get on track for 2030; the phase out of coal needs to happen seven times faster; deforestation needs to be reduced four times faster; rapid transit infrastructure coverage needs to be expanded six times faster; and the shift to healthier, more sustainable diets needs to grow eight times faster. (Nov 2023)
In 2022, S&P 500 companies' median total GHG emissions increased by 3%, compared to the 32% increase seen in Russell 3000 companies, according to a new report by The Conference Board. The report finds that large companies are leading in other areas as well, including disclosure of climate risk (74% of S&P 500 vs. 40% of Russell 3000) as well as the disclosure and use of renewable energy. (Nov 2023)
Corporate Climate Stocktake 2023 (We Mean Business Coalition (WMBC)) — Surveys business leaders across eight high-carbon, hard-to-abate sectors, and finds that more than 30% do not expect their companies to end fossil fuel use entirely before 2050, even though the majority of them have set net-zero targets for 2050 or sooner. Across the eight sectors (hydrogen, power, steel, aviation, road transport, cement, shipping, and agriculture), the rates of adoption of clean technologies are increasing, while costs are falling, leading to exponential growth in renewable power, electrification of transport, and hydrogen (with production costs falling 65% between 2010 and 2022 and expected to fall another 45% by 2030). However, the report notes several system constraints creating transition barriers, including: infrastructure, consumer behavior, market structure, technology, availability of inputs, business model, and workforce. The report also shares case studies on how companies are transcending these barriers, and highlights the importance of regulation in the transition, with 73% of companies surveyed identifying government regulation as the most important driver of accelerating the energy transition. (Nov 2023)
73% of companies say they are more optimistic about reaching their sustainability goals in 2030, up from 62% in 2022, according to Honeywell’s quarterly Environmental Sustainability Index 2023. Sustainability continues to be ranked as top most initiative (75%) and 92% of organizations have formal plans in place for reporting on progress toward environmental and social goals. However, 62% of organizations say wildfires, floods, and storms during 2023 will have a material impact on their environmental initiatives and 45% say that extreme heat will have or has already had a material effect on their near-term plans. (Nov 2023)
Sustainable Business Survey Report 2023 (WSJ Pro Sustainable Business) — Reviews sustainability functions’ organizational structures and resourcing and executive perceptions of progress. Findings include (Oct 2023):
- Only 23% of respondents rated their companies’ sustainability programs as “well developed” or “industry leader,” though 35% expect to be in those two categories 12 months from now.
- 63% of companies disclosed ESG information in 2023, up from 56% in the prior year, according to a survey of 247 corporate sustainability officials.
- 60% of respondents noted that their company’s sustainability program is managed entirely in-house, while 39% used both in-house and third party support.
- 47% said they have sufficient resources to deliver their sustainability program, while 9% say they are “severely under-resourced.”
- Dedicated sustainability staff time remained about the same for 53% of respondents while increasing for 32%. 56% expect staff time to remain the same and 32% expect it to increase in the next 12 months.
- There was a wide range of ESG frameworks being reported on including: UN SDGs (27%); a self-developed framework (25%); GRI (22%); CDP (19%); ISSB (18%); and TCFD (17%).
From Sustainability to Business Strategy (Leonardo Centre on Business for Society) — Through a combination of interviews with sustainability executives and a database of more than 900,000 corporate sustainability initiatives, the report examines the maturation of sustainability strategy and practice. Most notable, it finds that high maturity companies outperformed the S&P 500 index by 92% over a 12-year period, while low maturity companies underperformed by 70%. The report also finds that more mature companies were integrating the Chief Sustainability Officer beyond PR and compliance; innovating at a systems-level; partnering for impact; and more effectively engaging multiple classes of external stakeholders. (October 2023)
Almost 80% of companies disclosed that all of their ESG goals were on track, according to a Harvard Law School Forum on Corporate Governance assessment of 250 sustainability reports from S&P 500 companies published in 2023. The study also found that while single materiality assessments remain most common, almost 10% of companies conducted a double materiality assessment. Of different disclosure frameworks used, over 90% of companies used SASB, 77% used TCFD, 69% GRI, and 68% used the UN Sustainable Development Goals. (Oct 2023)
Only 25% of companies feel they have the ESG policies, skills, and systems in place to be ready for independent ESG data assurance, according to a new survey from KPMG. Those most ready for ESG assurance tend to have boards more engaged on ESG issues, conduct regular ESG training, and have controls in place for ESG data. About half of respondents also said ESG assurance has the potential to increase market share, spur innovation, strengthen reputation, and reduce costs.
44% of corporate executives believe it is likely they will reach their decarbonization targets for 2030, according to a new survey by Siemens of 1,400 senior executives in 22 countries. 40% said it was likely they would meet this year’s targets and 46% said it was likely they would accelerate decarbonization targets in the year ahead. (Sept 2023)
2022 Green Lodging Trends Report (American Hotel and Lodging Association (AHLA)) — Assesses best sustainability practices of more than 17,000 hotels in the U.S., dividing these into nine groupings, including waste management, single-use plastics, responsible consumption, water conservation, energy management, climate action, community impact, management system, and health and wellness. Key findings include (Aug 2023):
- Over 99% of hotels source at least one type of product sustainably. Over 46% purchase at least half their food and beverage items from fair trade sources.
- Almost all hotels have implemented water conservation measures in the past three years, with 95% having linen and towel reuse programs, and over 80% using native or drought-tolerant plants for landscaping.
- Nearly 99% have implemented energy efficiency measures in the past three years, and almost half have opted for LED lighting. Almost 30% maintain electric vehicle charging stations.
- Over 82% have implemented food waste prevention strategies in the last year, such as community food donation programs. And nearly 50% are choosing bulk toiletry dispensers over plastic bottles.
7 Sustainability Trends 2023 (AccountAbility) — Reviews seven sustainability trends that could shape business in 2023, including (July 2023):
- A growing number of climate pledges, commitments, and net zero targets, which may represent over $1.2 trillion in market value over the next decade.
- Businesses face increasing pressure, including a record number of shareholder votes, to demonstrate actionable progress on ESG issues.
- Geopolitical risk is becoming a key consideration in decision-making.
- Boards evolving to be more diverse, including in professional and socioeconomic backgrounds.
- As mandatory reporting requirements increase worldwide, ESG has become an imperative.
- Organizations taking a more holistic approach to supply chain sustainability, incorporating ESG principles that build suppliers’ economic viability and resilience.
- Nature based assets (in the form of raw material inputs vital to company products and ecosystem services that affect business operations) will drive company valuations.
86% of 751 companies surveyed plan to increase their sustainability budgets (up from 83%), according to Honeywell’s 3Q 2023 Environmental Sustainability Index. The survey also found (July 2023):
- 70% of companies said the political and regulatory environment has had a positive impact on their sustainability initiatives in the past 12 months.
- 74% were optimistic about attaining their sustainability goals, 3% lower than last quarter.
- Improving energy evolution and efficiency was the top sustainability commitment across all geographies, with 87% of respondents citing it as a priority.
- 93% of companies reported having a sustainability reporting process in place, however, only 38% had a centralized person on staff to track sustainability efforts.
Four Keys to Successful Sustainability Transformation: Unleashing the Power of Digital (Fujitsu) — Explores the current status of “sustainability transformation,” including how digital transformation contributes to the achievement of sustainability goals, based on survey results of 1,800 executives and key decision makers in nine countries. The survey found that many organizations are not yet implementing sustainability transformation and only 8% of companies are “true sustainability leaders.” It identified four key success factors for the sustainability transformation, including (July 2023):
- Driving leadership based on sustainability-oriented purpose, including rebuilding portfolios around sustainability and consistently communicating with stakeholders;
- Fostering empathy with customers and employees, including developing aligned skillsets for employees;
- Integrating sustainability into business, including understanding the relationship between sustainability and key performance indicators;
- Using data and digital technologies to transform the process of creating products and services and creating sustainable innovation.
INDIGGO — Released its Return on Leadership 100 (ROL100) list for 2023, in partnership with Fortune magazine. The ROL list evaluates the top 100 of the Fortune 500 companies using four characteristics of leadership: Connection to Purpose, Strategic Clarity, Leadership Alignment, and Focused Action. Top ranked ROL100 companies outperformed others in terms of revenue, profit, and growth. CEF members in the top 25 are: Microsoft (#1), Cisco (#3), UPS (#10), Procter & Gamble (#12), Qualcomm (#14), Dow (#16), Dell Technologies (#17), Delta Air Lines (#19), General Electric (#23), and General Motors (#25). (June 2023)
The total number of potential cases of greenwashing across all sectors has grown significantly since 2012, according to three new reports from the European Supervisory Authorities. However, it was not clear the extent to which these trends are primarily driven by companies engaging in more greenwashing or by the fact that “greenwashing gets more scrutiny” and is therefore more often identified and reported, according to the report from the European Banking Authority (EBA). The EBA report notes rising “climate accountability,” with increased public attention to climate change leading more companies to be held accountable for their environmental policies, climate impacts, and disclosures. The European Securities and Markets Authority (ESMA) also assessed types of common greenwashing and noted that “cherry-picking, omission, ambiguity, empty claims (including exaggeration), misleading use of ESG terminology…are seen as most widespread.” The report from the European Insurance and Occupational Pensions Authority (EIOPA) found that “Greenwashing has a substantial impact on insurance and pension consumers.” (June 2023)
FORBES — Released its first-ever Net Zero Leaders list, highlighting the 100 U.S. public companies (with at least $1 billion evaluation) that are best positioning themselves “to reduce their greenhouse gas emissions and ultimately offset them by 2050.” Forbes developed the list using data from research firms Sustainalytics and Morningstar, and all companies were considered in the context of their industry. CEF members in the Top 100 include: Northrop Grumman (#3), Bank of America (#4), Procter & Gamble (#9), Wells Fargo (#11), JPMorgan Chase (#21), Microsoft (#30), Salesforce (#36), BlackRock (#37), The Walt Disney Company (#38), Alphabet (Google) (#45), Ecolab (#48), WM (#51), Oracle (#59), CBRE (#65), PepsiCo (#77), Morgan Stanley (#80), Honeywell International (#87), Lockheed Martin (#88), UPS (#96), and 3M (#100). (June 2023)
Deep Green: How Data, Technology, and Collaboration Will Drive the Next Phase of Sustainability in Business (Cognizant) — Explores how businesses are increasingly embedding sustainability into their core cultures (i.e. becoming “deeply green”). This survey of 3,000 executives from a diverse set of markets and sectors finds (May 2023):
- The number of respondents who expect their sustainability efforts to drive stronger financial performance more than doubles between now and 2025 (from 31% to 65%);
- The most important drivers for sustainability are: doing the right thing for society and ensuring economic sustainability (59%); improving business performance (57%); and demonstrating action to the investment community (45%);
- 66% of respondents said their sustainability focus is on internal operations;
- Between 2020 and 2025, the percentage of respondents increasing their sustainability spending by 10% or more nearly doubles (from 26% to 51%);
- 62% say they are currently sourcing assets, products, components and raw materials that require less energy, and by 2025 42% aim to select suppliers that have “a net positive impact on the environment;”
- 62% believe that significant technological advancements are needed to achieve net-zero compliance; and
- Only 32% reported incentivizing employees at all levels to improve sustainability in their workplace. However, 71% identified incentivization as the most effective method for promoting a cultural shift towards sustainable practices.
The Effect of Multinational Enterprises on Climate Change (World Bank) — 157 multinational enterprises (MNEs) jointly account for up to 60% of global industrial emissions, with 10% coming from MNEs’ direct activities and 50% from their supply chains. The report finds that most of these 157 are insufficiently committed to decarbonizing production and supply chains. Only 25% have a Net Zero by 2050 commitment, 20% have a long-term strategy, 13% a medium term strategy, 5% a short term strategy, and none have a capital allocation strategy that aligned to Net Zero by 2050. However, MNEs are shifting their new investments to green sectors and avoiding polluting sectors. Foreign direct investment (FDI) in green sectors has increased 700% while FDI in polluting sectors declined 80% between 2003 and 2021. The report concludes with 5Ps to shape MNEs’ impact on climate change: patrolling (monitoring emissions); prescription (regulate); penalties (taxes); payments (incentives); and persuasion (corporate commitments). (May 2023)
The MSCI Net-Zero Tracker (MSCI) — Assesses the climate change progress of companies within the MSCI All Country World Investable Market Index. Key findings in this latest update (May 2023):
- Listed companies are on a path to warm the planet by 2.7°C this century;
- 51% of listed companies align with warming less than or equal to 2°C; 19% align with 1.5°C;
- 35% have disclosed at least some of their Scope 3 emissions, up 4% from the last assessment in November 2022;
- 44% have set a decarbonization target, up 8% from November;
- Listed companies are projected to emit 11.2 gigatons of CO2 equivalent in 2023, unchanged from 2022;
- Listed companies will use their share of the global carbon budget for keeping temperature rise below 1.5°C within 43 months (31 October 2026).
Do ESG Efforts Create Value? (Bain & Company and EcoVadis) — Investigated how ESG activities (such as setting ESG targets, embedding sustainability into management processes, sustainable procurement) correlate with both ESG outcomes and financial performance. The research found that along with environmental and social benefits, ESG activities are associated with encouraging revenue growth and EBITDA margins. Essentially, ESG activities affect ESG outcomes and improve financial and operational results, including profitability, and customer and employee satisfaction. Some examples (April 2023):
- Leaders in sustainable procurement have a median EBITDA margin of 14% while laggards have 11%;
- Those with the most women on executive teams have a median EBITDA margin of 12% vs. 9% for the least women;
- Companies where 81% of employees or more would recommend their workplace to a friend have a median EBITDA margin of 16%, vs. 10% where 60% or less would.
Sustainability initiatives remain top priority in the next six months for 75% of business, technology, and sustainability professionals surveyed in Honeywell’s Environmental Sustainability Index Q2 2023. However, economic or geopolitical issues and pandemic-related issues remain the top two barriers affecting environmental sustainability (ES) initiatives. 92% continue to see their prior 12-month ES goals as successful and 76% remain optimistic over the coming 12-month goals. 83% of organizations reported plans to increase investments in ES initiatives, down from 87% in Q1. Energy evolution and efficiency remains top priority for 64% of respondents. (April 2023)
Show & Tell: An Analysis of Corporate Climate Messaging and its Financial Impacts Pilot (Lazard) — Finds that large-cap U.S. firms increased the frequency of all forms of climate communication from 2011-2020, particularly in emission-intensive sectors. Firms increasingly disclose Scope 1 emissions (174% increase) and have pledged to decarbonize operations (105% increase in CDP commitments). However, 72% of firms are behind on their decarbonization commitments and will need to reduce emissions at a more aggressive yearly rate in order to meet their pledged targets. The report found a significant negative relationship between Scope 1 emissions and price-to-earnings (P/E) ratios but also found that increased transparency from disclosure offsets 48% of the P/E valuation discount tied to emissions on average. (April 2023)
Google Cloud Sustainability Survey 2023 (Google Cloud) — ESG efforts dropped from the #1 organizational priority in 2022 to #3 in 2023, according to this survey of 1,476 top-level executives in 16 countries. Executives cite macroeconomic issues and external pressure to cut sustainability initiatives and prioritize optimizing client relationships and driving revenues. Other key findings include (April 2023):
- The number of sustainability programs moving into the implementation phase was down 8% from 2022;
- 72% of respondents agreed that, "Everyone says they want to advance sustainability efforts, but no one knows how to actually do it,” up 7% from last year;
- Corporate greenwashing remained pervasive concerns among this year’s respondents, with 59% admitting to overstating or inaccurately representing their sustainability activities;
- 87% of respondents are looking to incorporate better measurement into their organizations to help make more accurate sustainability targets;
- 84% believe their sustainability initiatives would be more effective if they had a better structure with clear accountability;
- 96% of companies have at least one program in place to advance their sustainability initiatives, and participation in programs remains mostly unchanged from 2022.
EY Europe Long-Term Value and Corporate Governance Survey 2023 (EY) — Found a distinct difference between high-performing sustainability governance “experts” and “beginners” in corporations, according to this survey of 200 senior leaders. While 76% of experts are optimistic about revenue growth prospects, only 45% of beginners were. While 52% of experts were “very satisfied” with climate target progress, only 13% of beginners were. While 83% of experts were effective at managing the board agenda to ensure long-term ESG risks were discussed, only 52% of beginners felt they were. The report also explores themes on what separates experts from the rest to help support more effective sustainability governance. (March 2023)
ETHISPHERE’S “2023 WORLD’S MOST ETHICAL COMPANIES” LIST — Ethisphere released its 17th annual list honoring 135 companies from 19 countries and 46 industries that have “demonstrated a commitment to ethical business practices.” Eighteen CEF member companies are included in this year’s ranking, including Ecolab, International Paper, and PepsiCo, which have been recognized all 17 years of the award. (March 2023)
Nearly 98% of organizations have been at least somewhat or extremely successful in achieving one or more sustainability goals over the past 12 months, according to Honeywell’s 1Q 2023 Environmental Sustainability Index, which surveys 753 business leaders quarterly. Other highlights include (Feb 2023):
- 71% of companies see sustainability goals as one of their top five priorities;
- 74% are optimistic about achieving both their upcoming 12-month goals and 2030 goals on emissions reduction, up from 66% and 63% respectively in the prior quarter’s survey;
- 88% of companies expect to increase investments for energy efficiency and 85% for emissions reduction in the coming 12 months;
- Economic concerns and their impacts are now cited as the top anticipated barrier to successfully achieving their sustainability goals over the next year.
Global Impact at Scale: 2022 Edition (Chief Executives for Corporate Purpose (CECP) in collaboration with CECP Global Exchange) — Highlights international trends in corporate purpose strategies such as tracking progress on environmental, social, governance (ESG) factors; commitment to the U.N. Sustainable Development Goals (SDGs); community investment; and employee engagement. Key findings include (Jan 2023):
- 98% of companies have some form of ESG board oversight but few link executive bonus to ESG performance;
- 76% of companies increased the amount of publicly reported ESG data in 2021 from the prior year;
- 98% of companies used some form of voluntary standards for ESG reporting, with 63% using the Global Reporting Index (GRI);
- 50% of companies indicated that ESG data is helping attract ESG investors.
- 54% of companies find measuring the social areas of ESG more challenging than others.
- 44% of survey respondents have set net-zero goals.
The Ongoing Evolution of Sustainable Business: 2023 Trends Report (The SustainAbility Institute by ERM) — Reviews ten sustainability highlights from 2022, including companies linking executive compensation to ESG factors; setting net zero and nature positive goals; pursuing circular solutions like reuse and repair business models; and increasing supplier diversity to strengthen inclusion and equity efforts. The report also ventures into efforts to make supply chains more resilient; the use of AI to improve corporate sustainability initiatives; the growth of laws codifying human rights due diligence; and the growth of pay transparency, human capital development, and sustainability professionals within corporations. (Jan 2023)
State of Green Business 2023 (GreenBiz Group) — Explores 10 sustainability trends worth watching in 2023, with topics ranging from expanding micromobility to increasing sustainability training for workers. A few key trends include the shift of carbon disclosures from voluntary to mandatory; the incorporation of circularity principles into companies’ business models; the rapid growth in alternative proteins (with $5 billion in disclosed investments in companies in the industry in 2021); and in carbon capture technologies, with venture capital investments reaching $10.7 billion in the first three-quarters of 2022. (Jan 2023)
2023 Edelman Trust Barometer (Edelman) —
Business continues to be the most trusted institution globally, remaining at 62% from the previous year. NGOs were second most trusted at 59% (down from 60%), governments at 51%, and the media at 50% (down from 51%), according to this survey of 32,000+ respondents from 28 countries. Respondents also saw businesses as a leading source of trustworthy information (48%), second only to NGOs (51%) and above the media (42%) and government (39%). Other key findings include (Jan 2023):
- Only business was seen as both competent and ethical, increasing 20 points in its ethics rating from 2020 to 2023.
- Half or more of respondents feel business isn’t doing enough on climate change, economic inequality, and energy shortages (while 8% feel like they’re overstepping);
- Optimism that “my family and I will be better off in five years” declined globally 10 points to 40%;
- Respondents have both personal and societal fears, with 89% worried about job loss and 74% about inflation, and 76% about climate change and 72% about nuclear war;
- 65% agree that “the lack of civility and mutual respect today is the worst I have ever seen;”
- And yet only 30% agreed they would help a person who strongly disagreed with them or their point of view, while only 20% would be willing to live in the same neighborhood or have them as a coworker.
Sustainable Business Now (GlobeScan, Leaders on Purpose, and SAP) — This new platform showcases how leading companies from around the world are tackling sustainability challenges, providing replicable, scalable best practices to users. The platform provides case studies from a variety of industries, addressing issues such as decarbonization, inequality, and how to improve and scale social programs. (Jan 2023)
CORPORATE KNIGHTS — Released its 2023 Global 100 List, ranking the world’s most sustainable companies along 25 indicators, out of 6,000 public companies with revenues of over $1 billion. The top list has outperformed the MSCI All Country World Index on an annual basis for seven of the past 11 years. The top spot went to Schnitzer Steel Industries, a steel recycler that increased energy productivity by 74%, water productivity by 69%, and carbon productivity by 55% in 2021. CEF Members in the Global 100 include: Schneider Electric (#7), Alphabet (#26), Ecolab (#30), Unilever (#38), HP (#39), Cisco (#48), Hewlett Packard Enterprise (#67), and Apple (#73). (Jan 2023)
Corporate Minds on Climate Action (Conservation International and We Mean Business Coalition) — The vast majority of business leaders see long term-decarbonization as a priority (92%) and say the responsible use of carbon credits is important to reducing emissions (89%), according to this new survey of business managers engaged in sustainability from over 500 global organizations in the U.S., UK, and Europe. 79% of respondents also agree that science-based targets are critical for keeping companies on track, and 100% have or are already working towards climate targets. However, respondents also reported that they face challenges in meeting decarbonization goals, sharing that they see budget constraints (86%), a lack of consistency and collaboration across their organization (86%), and technological constraints (84%) as major barriers to reducing emissions and meeting targets. (Jan 2023)
JUST CAPITAL — Released its JUST 100 list for 2023 in collaboration with CNBC. Of 951 large public companies, 100 were scored for their just business behaviors, such as paying a fair living wage, protecting workers’ health, and minimizing pollution (based on the polling of 3,002 Americans). Of the top 10, five were CEF members, including Bank of America (#1), Microsoft (#3), Hewlett Packard Enterprise (#7), Apple (#8), and JPMorgan Chase (#10). In total, 23 CEF member companies were included in the 2023 JUST 100 list. (Jan 2023)
CDP — Highlighted 330+ global companies worth $11 trillion in market capitalization that have been named to CDP’s annual A List (out of 15,000 companies scored) for their transparency and action on climate change, forests, and water security. Of those, just 12 companies (including CEF Member HP Inc.), out of 900+ companies, were awarded a Triple A (receiving top scores across all three categories), down from 14 last year. More than 29,500 companies, worth $24.5 trillion, received an F for failing to respond to disclosure requests or providing insufficient information. (Dec 2022)
NEWSWEEK / STATISTA — Released its “America’s Most Responsible Companies 2023” list, which ranks 500 of the U.S. largest public companies based on their ESG performance. The top 50 include CEF members: HP (#1), Qualcomm (#13), Microsoft (#17), Cisco (#19), Hewlett Packard Enterprise (#34), Walt Disney (#39), Mastercard (#40), and Ecolab (#46). (Dec 2022)
A World in Balance (Capgemini Research Institute) —Many executives continue to be unclear of the business case for sustainability, with around half believing sustainability is “a non-viable option” with the costs outweighing the benefits, according to a new survey of over 2,000 respondents from 668 organizations. However, this research finds that sustainability frontrunners have witnessed 83% higher revenue per employee from 2020 to 2021 compared to the average, while sustainability beginners realized revenue per employee 13% below the average. (Nov 2022)
2022 Sustainable Value Study (EY) — This new survey finds that 70% of more than 500 global companies report higher than expected financial returns on climate initiatives benefiting the planet. Companies are also seeing other positive benefits like staff retention, recruitment, brand perception and customer purchasing behavior. This evidence counters the concerns that climate action may harm financial performance, which are among the greatest barriers to companies taking further climate action, with 36% of survey respondents being concerned climate action will have an impact on both their financial performance and their competition in the market in the short term. (Nov 2022)
Philanthropic giving by foundations and individuals to climate change mitigation increased 25% in 2021, building on growth in 2019 and 2020, according to Climateworks Foundation’s latest report on climate change funding trends. Total funding reached between $7.5-12.5 billion in 2021 but was still less than 2% of global philanthropic giving. Foundation funding increased 40% over 2020 amounts, and tripled since 2015, growing from $900 million that year to $3 billion in 2021. Clean electricity received the most funding at $215 million, with public engagement a close second at $210 million. Forest conservation and carbon dioxide removal saw sizable funding increases in 2021. (Nov 2022)
SystemsChangeLab.org (Systems Change Lab) — An open-source data platform to track global progress on key transformational changes across major systems, including power, industry, transport, finance, and carbon removal. The platform identified more than 70 shifts within these five systems, and offers a data-rich “virtual situation room” that showcases research, analysis, interactive dashboards and data visualizations based on System Change Lab’s State of Climate Action 2022 report. (Nov 2022)
Honeywell launched a new Environmental Sustainability Index, the first quarterly indicator of key trends pertaining to global efforts in climate change mitigation and other sustainability initiatives across sectors and regions. In its first quarterly survey report, Honeywell found that over 90% of 653 business leaders surveyed were optimistic about overall success with prior twelve-month goals across the four sustainability categories of energy evolution and efficiency, emissions reduction, pollution prevention and circularity/recycling. 97% of organizations plan to increase current year budgets in at least one of these sustainability categories and nearly 75% plan to increase budgets in all four categories. 73% stated that Energy Evolution and Efficiency is their top sustainability priority. (Oct 2022)
Three years after the Business Roundtable’s (BRT) statement redefining the purpose of a corporation,
JUST Capital released two reports analyzing the performance of the 239 BRT members and how Americans view the performance of the nation’s largest companies. (Aug 2022)
Performance highlights of BRT signatories compared to non-BRT peers include:
- Produce 66% less direct and indirect GHG emissions per dollar of revenue.
- Use 2.4 times more renewable energy as a proportion of total energy use.
- Are 3.2 times more likely to disclose measurable diversity and inclusion targets, 2.9 times to disclose conducting a pay equity analysis, and 3.4 more likely to disclose providing a subsidy for child care services.
- Are twice as likely to have a paid parental leave policy.
- Are 1.7 times more likely to include ESG key performance indicators in executive compensation or remuneration metrics.
Highlights of Americans’ expectations and beliefs include:
- 93% agree it’s important for companies to promote an economy that serves all Americans, but only 48% agree they are.
- 37% feel companies are having a positive impact on the environment and 49% believe they’re having a positive impact on society overall.
JUST CAPITAL — Released its 2022 Workforce Equity and Mobility Ranking. This listing identifies the Top 100 companies out of the Russell 1000, along 15 metrics that address equity, opportunity, and mobility. CEF members in the top 100 include Mastercard (#2), Microsoft (#3), Wells Fargo (#4), Alphabet (#6), JPMorgan Chase (#9), Bank of America (#11), Cisco (#13), PepsiCo (#18), Visa (#26), GM (#28), Ford (#32), Boeing (#38), Ecolab (#41), Hewlett Packard Enterprise (#47), Lockheed Martin (#51), Dow (#59), Amazon (#78), BlackRock (#87), Chevron (#89), 3M (#92). Compared to other companies in the Russell 1000, the top 100 performers (Aug 2022):
- Were 4.6 times more likely to disclose a Diversity, Equity, and Inclusion target (62% compared to 13%)
- Were 8.2 times more likely to have conducted a race/ethnicity pay gap analysis (68% to 8%)
- Were 7.3 times more likely to disclose they had a “fair chance hiring” policy (post-incarceration re-entry program) (12% to 1.6%)
- Offered an average of 1.7 more weeks of parental leave for primary caregivers (12 weeks compared to 10.3 weeks).
JUST CAPITAL — Released its 2022 Top 100 U.S. Companies Supporting Healthy Families and Communities list. Companies were selected from the Russell 1000 Index of largest US companies by market capitalization. JUST Capital made its selections based on companies’ prioritization of environmental, community, and workplace issues "at the intersection of [JUST Capital's] five key stakeholders—Workers, Customers, Communities, the environment, and Shareholders/Governance." Key findings among the top 100 (Aug 2021):
- 46% committed to reaching Net-Zero by 2050, compared to 6% of the rest of the Russell 1000.
- They offer, on average, 2.7 more weeks of paid parental leave for primary caregivers and 3.4 more weeks of paid parental leave for secondary caregivers than the rest of the Russell 1000.
- 71% conduct a general pay gap analysis and 57% conduct a race/ethnicity pay gap analysis, compared to the rest of the Russell 1000 at 16% and 9.6%, respectively.
- 39% disclosed ties between executive compensation and meeting ESG KPIs, compared to 11% of the rest of Russell 1000.
CEF members in the top 100 include Microsoft (#6), Apple (#10), Cisco (#21), General Motors (#24), Bank of America (#25), BlackRock (#26), Wells Fargo (#29), Hewlett Packard Enterprise (#32), HP (#36), Johnson & Johnson (#39), Mastercard (#42), Chevron (#45), Dow (#53), Ford (#54), PepsiCo (#63), Visa (#64), Morgan Stanley (#65), Procter & Gamble (#76), CBRE (#82), and JPMorgan Chase (#96).
CSR Insights Survey (Association of Corporate Citizenship Professionals (ACCP)) — Delivers insights from CSR professionals from more than 100 companies about resources, expectations, focus areas, and support from leadership related to their work. Overall, the trend toward increasing demands on CSR staff continues to increase, but without commensurate support. Specifically, of those surveyed (June 2022):
- With respect to increased demands from leadership, respondents singled out integration with ESG (44%), availability of impact data (39%), and integration with DEI (36%) as priorities.
- Only 20% feel that they have sufficient staff to meet increased demands; 25% feel they have sufficient budget.
- Only 33% consider their leadership’s understanding of CSR strategy to be high, and 22% identified improvement in that area as having the greatest potential for increased CSR impact.
- 50% believe there’s a need for greater integration of CSR strategy across the business, and 30% identified improvement in that area as having the greatest potential for increased CSR impact.
The BoF Sustainability Index 2022 (The Business of Fashion) — Assesses the progress of the world’s 30 largest publicly traded apparel companies against their stated 2030 environmental and social commitments. Each company is scored (methodology in the FAQ here) on a scale of 1–100 in the following “impact categories”: Transparency, Emissions, Water & Chemicals, Waste, Materials and Workers’ Rights. The report finds that (June 2022):
- All the companies have overall scores lower than 50 (highest (Puma)=49; avg.=28), indicating that the industry as a whole is not on track to hit 2030 targets in most impact categories.
- Average scores in 5 of the 6 impact categories (excepting Emissions) decreased year-over-year, owing in large part to the poor performance of 15 companies added to the index in 2022.
- The best scores are in the Emissions impact category (high=79; avg.=38); The worst scores are in the Waste impact category (high=38; avg.=19).
- Some of the largest companies, including URBN, Skechers, Fila Holdings, Anta and HLA Group had the lowest scores (<10) because they provided little or no public disclosure about specific environmental or social action plans.
GARTNER — Published its annual Global Supply Chain Top 25, a ranked list of companies that "demonstrate excellence in supply chain management amid high-risk supply chain disruption." The list includes CEF Members Cisco Systems (#1), Schneider Electric (#2), Johnson & Johnson (#4), PepsiCo (#5), Microsoft (#10), HP Inc. (#15), Dell Technologies (#17), and Siemens (#21). An additional “Masters” category, for companies with top-five composite scores in 7 of the last 10 years, is comprised entirely of CEF members: Amazon, Apple, McDonald’s, Procter & Gamble, and Unilever. Gartner’s analysis of top-performing companies’ practices revealed the following trends (June 2022):
- Dynamic Chief Supply Chain Officers (CSCOs) who form alliances with other companies to solve specific supply chain challenges for the benefit of everyone involved.
- Flexible staff responsibilities and budgets that can be easily adapted to address market disruptions.
- Ambitious goals for Scope 3 emissions reductions and improved circularity
- Data analytics training for key employees, empowering them to make data-driven decisions related to supply chains.
Costs and Benefits of Climate-Related Disclosure Activities by Corporate Issuers and Institutional Investors (The SustainAbility Institute by ERM) — Presents survey results from corporate issuers and institutional investors to determine how much US organizations spend on climate-related disclosure activities. The findings are intended to inform discussions related to proposed SEC rules on climate-related disclosures and provide a comparison to the SEC’s cost estimates included in its draft rules. Key findings include (May 2022):
- Average corporate issuers spend $533,000 annually on climate-related disclosure (SEC estimate $530,000), with the largest portion of spending going to GHG analysis and/or disclosures ($237,000 average annual cost).
- Issuer average annual cost rises to $677,000 when survey categories not covered by the proposed SEC rule are included.
- Institutional investors spend an average of $1,372,000 annually to collect, analyze, and report climate data to inform their investment decisions.
- Institutional investors spend the most on external ESG ratings, data providers, and consultants ($487,000 average annual cost) and in-house, outside counsel, and proxy solicitor analysis of shareholder voting for ballot items related to gathering climate risk management information ($405,000 average annual cost).
The 2022 edition of the annual Axios Harris Poll 100 indicates a slow or inconsistent response to political crises can damage consumer’s trust in a company. Findings of the annual survey, which appraises the reputations of the 100 most visible brands in the country, suggest that companies are increasingly having to balance the expectations of their employees, consumers, and politicians. When polled on whose views a company should prioritize, 31% of respondents said their customers, 28% said employees, and just 16% said shareholders. Brands with clear, partisan political affiliations mostly saw their reputation rankings decline. (May 2022)
The 2022 Edelman Trust Barometer Special Report: The Geopolitical Business provides insights from the firm’s recent survey of 14,000 people in 14 countries and includes these key takeaways (May 2022):
- Businesses are expected to be active and ethical participants in society. A majority of respondents believe businesses have economic (85%), societal (77%), and geopolitical (59%) responsibilities.
- CEOs are expected to be publicly visible leaders and primary communicators for their companies’ responses to pressing social and environmental issues.
- Russia’s invasion of Ukraine has created a new test for business. 47% of respondents have either bought from or boycotted brands/companies based on their response to the crisis, and trust in companies continuing to operate in Russia fell 38 percentage points.
- Expected geopolitical action goes beyond active conflicts: The majority of respondents expect a response from business when countries in which they operate have abusive labor practices (97%), repressive governments (95%), and inadequate environmental protections (94%).
3BL MEDIA — Released its 100 Best Corporate Citizens List, an annual ranking of ESG transparency and performance (methodology here) among the 1,000 largest US public companies. Owens Corning earned the top spot for the fourth consecutive year. The ranking includes CEF members PepsiCo (#2), Apple (#3), HP (#4), Cisco (#5), Microsoft (#7), Ford (#9), Johnson & Johnson (#12), Ecolab (#15), General Motors (#19), Trane Technologies (#24), Kimberly-Clark (#29), HPE (#43), Mastercard (#48), International Paper (#63), 3M (#69), Dell Technologies (#72), Wells Fargo (#74), CBRE (#76), ADM (#79), Procter & Gamble (#82), WM (#91), and Marriott International (#99). (May 2022)
Science Based Targets Initiative Annual Progress Report, 2021 (SBTi) — Breaks down last year’s statistics, current trends, and ongoing challenges with respect to the adoption of—and performance against—science-based emission-reduction targets. Highlights from the report include (May 2022):
- At the end of 2021, 2,253 companies across 70 countries and 15 industries, representing more than one third ($38 trillion USD) of global market capitalization, had either SBTi-approved emissions reduction targets or had commitments in process.
- Almost 80% of targets approved in 2021 (and almost 66% of all approved targets) were aligned with 1.5°C. Between 2015-2020, and most companies with 1.5°C targets cut emissions twice as fast as required.
- As of July 15, 2022, SBTi will only accept target submissions aligned with its 1.5°C standard. This supersedes the previous “well below 2°C” threshold.
- Science-based targets are associated with a 12% emissions reduction across scope 1 and 2 emissions in 2020 and a longer-term reduction of 29% since 2015. About 96% of companies with SBTi-approved targets include Scope 3 emissions in those targets.
- Geographic and sectoral adoption of science-based targets remain uneven. Adoption in developing countries and among heavy-emitting industries continues to lag, but all regions and sectors of concern are believed to have crossed a tipping point, calculated at 20% participation, indicating that adoption within them is now likely to accelerate.
- SBTi announced that it will be launching its new measurement, reporting, and verification framework in 2023. This “Project Framework” will deliver increased transparency and accountability of companies’ progress against their science-based targets.
Investing in Society: 2022 Edition (CECP) — Provides quantitative and qualitative analyses of the “current state of corporate purpose” among the Fortune 500. The newly released edition examines trends related to ESG metrics and disclosure, and summarizes corporate performance in the CECP ESG Scorecard, which breaks down 22 Key Performance Indicators; and CECP’s ESG Factor Analysis, which offers a way to determine positive or negative ESG performance. The analysis folds in CECP’s thought leadership and a review of current opinion research spanning sectors. For the period between 2018 to 2020, CECP reported several significant findings, including (May 2022):
- Fortune 500 companies with net-zero emissions targets rose from 2.9% to 31.6%
- The percentage of company boards with a dedicated Sustainability Committee increased from 41% to 59%.
- Community investment nearly doubled from a median total community investment of $27B in to $45B.
- The number of companies actively managing social supply chain issues—such as supporting human rights or eliminating the use of child labor—increased from 71.3% to 82%.
- Women’s representation in management barely increased from 29% to 30%, and representation in the workforce overall increased less than 1%.
- Despite high numbers of companies having diversity and inclusion initiatives, the percentage of minorities in management positions across all sectors increased only 1%, to 26%.
ETHISPHERE’S “WORLD’S MOST ETHICAL COMPANIES®” LIST — Ethisphere released its list of the World’s Most Ethical Companies® in 2022, recognizing 136 companies that “demonstrated a commitment to ethical business practices.” Fourteen companies (including CEF member Apple) are first-time honorees, and six companies (including CEF members Ecolab, International Paper, and PepsiCo) have been recognized all 16 years since the awards’ inception. (March 2022)
Now For Nature: The Decade of Delivery (CDP, in partnership with Oliver Wyman) — Examines the data related to climate, forests, and water security that 1,228 European companies disclosed to CDP in 2021 and identifies priorities for action. Eighty-five percent more companies have approved science-based targets than in 2020, but only 16% of companies have 1.5°C-aligned targets. Only 5% of companies disclosing on all three topics have a “robust” emissions target, a target to reduce water withdrawals, and a “best-practice forests commitment” that includes zero deforestation. (March 2022)
2021 Climate Transition Plan Disclosure: Are Companies Being Transparent in Their Transition? (CDP) — Analyzes the data related to climate transition plans that over 13,000 companies disclosed to CDP in 2021, including industry and geographic trends. It finds that only a third of companies are developing climate transition plans, and only 1% of companies disclosed against all 24 indicators “associated with a credible plan.” The financial services, power, and fossil fuel sectors have the highest rates of plan disclosure, while transportation and apparel have the worst rates. (March 2022)
Shareholder advocacy group As You Sow released a report ranking 55 of the largest US companies’ progress in aligning their GHG emission reductions with 1.5°C of warming. Only three companies—CEF members Ecolab, Microsoft, and PepsiCo—received an overall “A” grade, and two—CEF members Alphabet and Apple—received an overall “B” grade, with 84% of companies receiving an overall “D” or “F.” Zero companies received an “A” for GHG target setting. (March 2022)
AS YOU SOW / CORPORATE KNIGHTS “CLEAN200” LIST — Shareholder advocacy group As You Sow and Corporate Knights released their annual list of the 200 largest public companies “ranked by green energy revenues.” On average, it found 58% of revenues earned by Clean200 companies to be “clean,” up from 39% in 2021 and significantly above the 20% average for their MSCI ACWI peers. The top 10 includes CEF members Apple (#1), Alphabet (#2), Cisco Systems (#7), HP (#8), Schneider Electric (#9), and Siemens (#10). (Feb 2022)
Key Trends That Will Drive the ESG Agenda in 2022 (S&P Global) — Outlines nine trends that S&P Global expects will drive the 2022 ESG agenda, which include the growth in sustainable debt issuance, scrutiny of corporate sustainability efforts, and pressure on business and government leaders. Key findings (Feb 2022):
- New regulations and reporting standards will demand more credible corporate disclosures backed by better data.
- Corporate boards and government leaders will be more pressured to enhance their ESG skills.
- Climate transition strategies will increasingly integrate social issues.
- Climate stress testing will become prominent in the financial services industry.
- Assessing natural capital and biodiversity risks will become even more important.
SPG GLOBAL’S “2022 SUSTAINABILITY YEARBOOK” — Over 700 companies made SPG Global’s 2022 Yearbook, an annual assessment to distinguish the top-performing companies in corporate sustainability. CEF members Cisco Systems, General Motors, Siemens, Unilever, and Waste Management earned the highest “Gold Class” status,achieving an S&P Global ESG Score within 1% of their industry's top-performing company's score. (Feb 2022)
Global Impact at Scale: 2021 Edition (Chief Executives for Corporate Purpose, CECP, in collaboration with the CECP Global Exchange) — Provides a global snapshot of corporate ESG action, social investment, and volunteerism in 2020, including progress toward the UN SDGs and diversity, equity, and inclusion (DEI). 75% of companies predicted that ESG would be integrated across their company within five years; 70% allocated more resources to DEI; and 69% said ESG data helps them attract “a new generation of empowered employees.” (Jan 2022)
State of Green Business 2022 (GreenBiz Group, in collaboration with LinkedIn and S&P Global Sustainable1) — Explores the top 10 sustainable business trends of 2022, the state of green jobs and skills, and the state of net zero. Key findings (Jan 2022):
- 80% of companies disclose carbon emissions, up 22% since 2016, yet companies are 65% short on emission reductions needed to align with a 1.5°C pathway
- 78% of companies are expected to face moderate to high physical climate risk by 2050
- Supply chain data is expected to “get granular” and change approaches to investing, product marketing, and how employees demand change
- Power companies will work toward ways to match energy use with a real-time clean energy supply
- Logistics decarbonization efforts are expected to grow across sectors
- Biodiversity standards could become more common
- Circular mining initiatives are expected to rise alongside demand for metals and raw materials for the clean economy transition
- “Circular economy leads/executives” are being hired across industries
CORPORATE KNIGHTS “GLOBAL 100” LIST — Corporate Knights released the annual 2022 Global 100 list, which ranks the world’s most sustainable companies out of nearly 7,000 companies with over $1 billion in revenue. Notably, the top 100 companies put an average of 48% of investments into clean activities and have generated a total investment return of 331% since 2005 (compared with 279% for MSCI All Country World Index). The top 10 include: (Jan 2022)
- Vestas Wind Systems
- Chr. Hansen
- Autodesk
- Schneider Electric (CEF member)
- City Developments
- American Water Works Company
- Ørsted
- Atlantica Sustainable Infrastructure
- Dassault Systemes
- Brambles
Winning the Race to Net Zero: The CEO Guide to Climate Advantage (World Economic Forum, in collaboration with Boston Consulting Group) — Outlines how companies can “close the emissions gap, translate targets into concrete roadmaps,” and adapt their business in an evolving economic landscape. It concludes that early movers in the net-zero transition are likely to see “higher shareholder returns and a sustainable source of competitive advantage.” Key findings:
- Nearly all companies can cut their emissions by 30% at net-zero cost to their business.
- Companies that “decarbonize early” are likely to see EBIT (earnings before interest and taxes) margins of 2 to 12 percentage points higher than those that decarbonize later.
- Across 10 sectors, sustainability leaders secured capital that cost an average of 100 basis points less than what “sector laggards” secured.
- Corporate climate leaders “play in higher-growth segments.”
- Nearly half of job seekers see sustainability as a reason to change or not choose a job.
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Sustainability Disclosure Practices in the Russell 3000, S&P 500, and S&P MidCap 400: 2022 Edition (The Conference Board, Heidrick & Struggles, ESGAUGE) — Analyzes US publicly traded companies’ climate disclosure and performance data in key areas: climate, water, biodiversity, use of external assurance, and gender diversity. It recommends ways for companies to “take a fresh look” at their disclosures and “provide greater information.” Key findings:
- Larger US firms disclose their GHG emissions at 2.5 times the rate of smaller US firms and obtain external assurance for their sustainability information at 6 times the rate.
- Across all three indexes, fewer than 12% of companies disclose the amount of water taken from water-stressed areas and fewer than 15% have biodiversity policies.
- Three times as many shareholder proposals on board and workplace diversity were voted on last year (2020 baseline).
MORE » (Jan 2022)
JUST CAPITAL 2022 “JUST 100 LIST” — 100 companies out of 954 public companies scored by JUST Capital, in collaboration with CNBC, made the 2022 “JUST 100” list, which recognizes companies that perform the best against 20 “priorities for just business behavior” (e.g., accountability to all stakeholders, paying a fair, living wage) that are identified based on polling of the American public. The top 10 includes CEF members Alphabet (#1), Microsoft (#3), Bank of America (#5), Apple (#7), and Cisco Systems (#10). (Jan 2022)
List of Business Sustainability Performance & Trends, 2021-2019 (PDF)
State of Sustainability Profession
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Future of Jobs Report 2025 (World Economic Forum (WEF)) — Examines global labor market trends,surveying 1,000 global employers, collectively representing over 14 million workers across 22 industry clusters. Key trends (Jan 2025):
- About 170 million new jobs will be created by global macrotrends over the next five years, while 92 million roles will be displaced, providing a net employment increase of 78 million jobs. Driving trends include: technological change, demographic shifts, and the green transition.
- Green transition trends, including reducing carbon emissions and climate adaptation, will drive farmworker job growth by 35 million jobs by 2030 (up from over 200 million today).
- The climate transition is driving demand for roles such as renewable energy engineers, environmental engineers, and electric and autonomous vehicle specialists, all among the 15 fastest-growing jobs.
- Climate trends are also driving environmental stewardship, which is among job skills expected to increase significantly in use in 2030.
- 59% of the world’s workforce will need upskilling or reskilling by 2030.
- Diversity, equity, and inclusion initiatives have become more prevalent, with 83% of employers reporting an initiative in place, compared to 67% in 2023.
The CSO at a Crossroads: Three Paths Forward for Sustainability Leaders (Business for Social Responsibility (BSR)) — Interviews 31 Chief Sustainability Officers (CSOs) to understand the increasing conflict between expectations to focus on compliance versus innovation and strategic foresight. Three insights gleaned from respondents:
- 64% feel that regulation enables meaningful strategic impact.
- 83% feel that increased involvement by other C-suite executives helps advance ambitious sustainability objectives.
- Only half spend 70% or more of their time on “high-impact” work.
The report finds three potential paths forward for CSOs: the steady manager who prioritizes risk management and compliance; the integrated strategist who incorporates sustainability considerations into core business decisions; and the transformative agent who has a mandate to explore ways to influence and potentially reshape the company’s fundamental business strategy, governance, and products and services. (Oct 2024)
The State of the Sustainability Profession 2024 (Trellis) — Explores the evolution of the sustainability leader in business, based on 1,185 responses, 75% of which are employees of organizations with revenue greater than $1 billion. Insights include (Oct 2024):
- 74% of respondents increased sustainability team staff over the past two years.
- 20% said their organization has created an ESG controller function, a term “virtually non-existent” two years ago.
- The number of high-ranking sustainability executives who report directly to the CEO has risen from 22% to 30% in the past two years.
- 14% report having started to cut back on the use of terms like “green” and “ESG” in their public communications.
- 57% saw their sustainability budgets increase in 2024 versus 74% in 2022.
- Salaries for sustainability professionals have grown more than in the past 14 years (since data has been collected for this report series).
Global demand for green talent grew twice as quickly as supply between 2023 and 2024 (11.6% to 5.6%), according to LinkedIn’s Global Climate Talent Stocktake. Globally, the hiring rate for job seekers with green skills or titles is 56.4% higher than that of the workforce overall. (Sept 2024)
Forget the Sustainability Unicorn. How to Upskill a Climate Workforce (OnePointFive) — Explores the widening gap between demand and supply of workers with green skills, with demand growth nearly twice that of supply growth (22.4% to 12.3% annually). Using surveys and expert interviews, the report argues that businesses should prioritize training to “keep pace” with green skills needed in the climate workforce (rather than attempt to hire highly experienced “sustainability unicorns”). The report also finds that employers overvalue broad “climate fluency” over specialized skills, like supply chain management and technical skills. It then maps out a framework to facilitate a workforce transition, including a baseline assessment, creating goals and a plan, and building a team, through a mix of hiring and internal upskilling. It concludes with sector specific playbooks for energy, fashion, and finance with industry specific takeaways. (Sept 2024)
Global Green Skills Report 2023 (LinkedIn Economic Graph) — Identifies trends at the intersection of the workforce and sustainability, based on the activity of more than 930 million LinkedIn users worldwide. It analyzes three sectors critical to meeting sustainability targets: energy production, transportation, and finance. Insights include (June 2024):
- Around the world, only one in eight workers has one or more green skills.
- Between 2022 and 2023, the share of workers who held a green job or list at least one green skill on their LinkedIn profile grew 12.3% across 48 countries examined.
- During the same period, the share of job postings requiring at least one green skill grew by a median of 22.4%.
- The median LinkedIn hiring rate for workers with at least one green skill is 29% higher than the workforce average.
- From 2015 to 2023, employment in the renewable energy industry grew in every country studied.
- Fewer workers in the finance industry (6.8%) list having green skills, though it is greening faster than most industries (with a 14.8% year-over-year increase).
2024 Global Trends in Stakeholder Incentives: What’s Next? (Farient Advisors and the Global Governance Executive Compensation Group) — Analyzes the executive compensation practices and ESG incentives of over 500 global companies. Insights include (April 2024):
- 87% of large companies globally incorporate ESG measures into their incentive plans, up from 78% the previous year.
- Sectors with previously low use of ESG incentives (such as information technology and consumer staples) are catching up with early adopters.
- While companies are aware of an ESG backlash in the U.S., they maintain their focus on long-term value drivers, which often are tied to ESG factors. For example, the use of a DEI metric grew from 60% in 2022 to 66% in 2023.
- Prevalence of environmental measures has grown rapidly, from 23% in 2020 to 61% in 2023 (up from 50% in 2022), driven particularly by a steep increase in incentives tied to emissions reductions (up from 52% in 2022 among companies using environmental measures to 85% in 2023).
- The incorporation of ESG measures in Long-Term Incentive (LTI) Plans is also growing, with large companies going from 28% using ESG measures in LTI plans in 2022 to 34% in 2023.
Asia Pacific Real Estate Chief Sustainability Officer Survey (CBRE and U.S. Green Building Council) — The role of Chief Sustainability Officer (CSO) is growing in the Asia Pacific region, according to this survey of 67 Asia Pacific real estate leasing and investment companies. Highlights include (March 2024):
- 84% of respondents have established CSO positions, with about half of these created in the past three years.
- The net zero target date of asset owners is 20 years later than occupiers, with 53% of occupiers having net zero targets by 2030, and 51% of asset owners having net zero targets by 2050.
- 75% of asset owners adopted green finance, such as for capital-intensive construction or acquisition of green buildings.
- Asset owners plan to increase green buildings in their portfolios from 39% to 63% over the next three years.
The Global Energy Talent Index Report 2024 (Airswift) — Charts emerging trends across the global energy workforce, with a special focus on AI, surveying almost 12,000 energy professionals in 149 countries. Highlights from the renewables sector include (Feb 2024):
- 51% of professionals reported a pay rise, compared to 47% last year.
- 32% of renewables workers have been headhunted for a job six or more times, and 13% over 16 times last year.
- 32% use AI in their role and 36% of companies have an AI policy (with 36% of those policies covering what AI can be used for).
- The main uses of AI include automated workflow and collaboration (30%); optimizing energy production (28%); improving products and services (22%); and for machine learning (19%).
Addressing the Strategy Execution Gap in Sustainability Reporting (KPMG) — Investigates large companies’ ESG data and reporting capabilities, surveying 550 board members, executives and managers at public and private corporations with annual revenues above $500 million (and 66% above $1 billion in revenues). Key findings (Feb 2024):
- 90% of companies surveyed will increase ESG investment in the next three years, with top areas of investment including: dedicated ESG personnel (43%); ESG-specific software (40%); and employee training (38%).
- 83% believe they are ahead of peers regarding ESG reporting, but 47% still use spreadsheets to manage ESG data.
- 76% are planning to restructure teams to better align ESG goals with business strategy.
- 71% of core ESG reporting activities are currently or planned to be outsourced in the next three years.
- 58% plan to improve ESG data collection with AI.
- 83% anticipate an increase in ESG integration across company roles.
Green Skills: Driving the transition to a more sustainable future (Economist Impact) — Investigates the impact of the green transition on the labor market, particularly the demand and supply of green skills, based on a survey of 1,000 business leaders. Key findings (Jan 2024):
- 80% of respondents agree green skills will be the most important driver of the green transition. However, only 55% report their businesses are implementing or planning to implement green skills programs.
- 79% of respondents agree the green transition presents more opportunities than challenges, and 73% believe it will create more jobs than it eliminates (with 81% believing these jobs will be higher-quality).
- 76% agree that the transition will require most workers to acquire green skills, not just those working in explicitly green jobs or functions.
- Bridging emerging gaps in green skills will require innovative strategies by governments, educational institutions, and the private sector.
The Sustainability Census 2023/24 (Acre) — This report, based on a survey of 2,253 responses, provides a holistic overview of the sustainability profession within business and finance. Key findings include (Dec 2023):
- 65% of organizations worldwide have made public commitments to sustainability.
- Sustainability professionals across all sectors are skeptical about their organization's ability to meet its sustainability commitments within the designated timeframes.
- 9% of respondents receive bonuses that are partially determined by their sustainability/ESG performance.
- More than half of organizations in North America and Asia are boosting their sustainability team budgets.
- The property & real estate sector reports the most widespread sustainability budget increases.
- Respondents in North America express the highest level of satisfaction with their available resources.
- 65% of sustainability professionals have completed a master’s degree.
- Sustainability professionals in Europe report the highest level of traditional educational qualifications.
Global Green Skills Report 2023 (LinkedIn Economic Graph) — Identifies trends at the intersection of the workforce and sustainability, based on the activity of more than 930 million LinkedIn users worldwide. Key takeaways (Dec 2023):
- 1 in 8 workers has one or more green skills across all industries. But only 1 in 15 in the finance industry has one or more green skills.
- Between 2022 and 2023, the share of green talent in the workforce rose by a median of 12.3%, while the share of job postings requiring at least one green skill by 22.4%, nearly twice as quickly.
- Even as overall hiring slowed over the past year, LinkedIn job postings requiring at least one green skill have grown by a median of 15.2%.
- The median LinkedIn hiring rate for workers with at least one green skill is 29% higher than the workforce average.
- From 2015 to 2023, employment in the renewable energy industry grew in every country studied. For every 100 workers who left the global renewable energy sector, 120 workers joined.
The number of clean energy jobs surpassed fossil fuel jobs in 2021 for the first time, reaching 35 million in 2022 (compared to 32 million fossil fuel jobs), according to an International Energy Agency report. Clean energy sectors added 4.7 million jobs between 2019 and 2022, compared to a loss of 1.3 million jobs in the fossil fuel sector. The report also found that while there are shortages affecting the clean energy sector, with training not keeping up with growing demand, many fossil fuel workers have the skills and specializations to fill clean energy roles. (Nov 2023)
A majority of over 500 sustainability professionals surveyed by Linklaters said they are putting off collaborating on ESG issues with other companies due to fear of breaking competition rules (60%) or because legal risks were too high (56%). However, about one-third did report having been involved in one or more sustainability collaborations. And 82% believe it is important to work with peers to pursue sustainability goals. Only about 57% were aware of the EU and UK Guidance on sustainability collaborations from competition authorities. (Nov 2023)
Global Green Skills Report 2022 (LinkedIn) — In 2021, less than 1% of hiring involved green jobs, and half involved jobs with no green skills at all. Including jobs that are “greening” (i.e. could be performed without green skills but typically require at least several green skills), the percentage increases to 10% (The remaining 40% of jobs have “greening potential”). The share of green talent in the workforce is also increasing, growing from 9.6% in 2015 to 13.3% in 2021 (roughly 6% per year). Job postings requiring green skills grew 8% annually over the past five years, indicating a gap between talent and demands. The report also found a gender gap in green jobs, with 62 women for every 100 men considered green talent, a number that has remained stagnant since 2015. The education gap is also not closing, with green talent growing faster among members with Bachelor’s degrees or more. (June 2023)
35% of sustainability leaders (from 506 UK businesses of at least £1 billion ($1.24 billion) in annual revenues) warned that the difficulty in hiring talent with climate change skills is a barrier to achieving Net Zero, according to research from EY. 33% say a lack of board-level climate expertise is also a barrier. 30% believed that the difficulty in retaining or upskilling green talent represents a major internal barrier to addressing climate change. Though 50% of sustainability leaders surveyed did say their organizations are in the process of appointing new employees or retraining existing employees. More than 60% also said that joint ventures could prove useful in reducing emissions of products and creating innovative climate solutions. However, 56% said that regulatory concerns represented a barrier to establishing these partnerships. (June 2023)
Bankers and money managers in the U.S. whose job titles include “ESG” or “sustainability” earned around 20% higher base salaries on average, according to data from Revelio Labs shared with Reuters. The rate of base salary growth for ESG roles has been about 38% higher than non-ESG personnel since 2019. (May 2023)
The Future of Jobs Report 2023 (World Economic Forum (WEF)) — Some 23% of jobs are expected to change by 2027, with 69 million new jobs created and 83 million eliminated, according to survey of 803 companies employing 11.3 million workers. This is a net decrease of 14 million (or 2% of) current jobs. Some key trends include (May 2023):
- Largest job losses are expected in administrative, security, factory, and commerce roles;
- Largest absolute gains will come in education, agriculture, and digital commerce sectors, with 3 million, 3 million, and 4 million jobs added respectively;
- Businesses expect big-data analytics and AI to positively affect job trends;
- Six in 10 workers will require training before 2027, while only half have access to adequate training opportunities currently;
- The hiring rate for green jobs has been higher than overall hiring rate since 2019;
- Sustainability jobs were 3 of the top 10 fastest growing roles on LinkedIn over the past four years;
- The proportion of the labor force reporting green skills grew to 13% up from 9% in 2015;
- Analytical thinking and creative thinking remain the most important skill for workers in 2023.
2023 Weinreb Group Chief Sustainability Officer Report (Weinreb Group) — The total number of U.S. companies with a Chief Sustainability Officer grew to 183, up from 95 in 2021 and 29 in 2011, according to a survey of U.S. publicly traded companies. CSO team size has also doubled in the past 12 years, with direct reports doubling from four in 2011 to eight in 2023. Plus, more employees work on sustainability, with an average of 26 employees outside the core team spending at least 50% of their job on sustainability. The number of CSOs who have that job as a stand-alone title has grown to 71%, up from 48% in 2011. 34% of CSOs now report directly to the CEO and the rest were two steps away. In 2011, 11% of CSOs reported through marketing; in 2023 this fell to zero. The report also found that 76% of CSOs sit on the corporate leadership team today, while only 41% did in 2011, and 99% of CSOs surveyed say they engage with the board, both revealing the CSO’s growing importance. (March 2023)
Strategy&, part of the PricewaterhouseCoopers consulting network, released an analysis of the presence and roles of CSOs among 1,640 companies across 62 countries in the context of a rapidly changing ESG landscape. As companies respond to increasing ESG disclosure requirements and work to integrate ESG business elements in practice, the need for internal leadership becomes more essential. Insights from the report include (May 2022):
- The number of companies with formal CSOs that have executive-level status and influence, alongside the CEO and CFO, hit 28% in 2021, up from 9% in 2016. Another 48% of companies had a CSO with more limited status and influence.
- ESG ratings from financial market data provider Refinitiv show that, of companies receiving an A-rating, 98% had an executive with at least some sustainability responsibility.
- High-level CSO presence varies by sector. Companies selling consumer products, chemicals, and oil & gas were more likely to have CSOs, in line with the high levels of regulatory requirements and scrutiny from investors, NGOs, and the media.
- High-level CSO presence varies by region. North American and European companies were more likely to appoint high-level CSOs—48% and 35%, respectively. Those in the Middle East and Asia Pacific ranked last, with just 14%.
State of the Profession 2022 (GreenBiz) — Offers an overview of current sustainability profession trends inside both large and smaller companies based on 1,500 survey responses from sustainability professionals (a record for the seventh biennial report) and additional data collection with assistance from the Weinreb Group Sustainability Recruiting, Global Reporting Initiative, and Environmental Defense Fund. Highlights (April 2022):
- 76% of respondents from large companies reported a headcount increase of FTE sustainability professionals, an 18-point jump since 2019.
- 31% are part of a sustainability team of 20 or more FTEs, a 12-point jump from 2010.
- 74% reported that their budgets had increased, a 24-point jump from 2020.
- On a scale from 1 to 7, 60% rated CEO interest in the company’s sustainability program as either a 7 (20 percent) or 6 (40 percent).
- Average total compensation (base salary plus additional compensation) is $146,900 for sustainability managers, $227,158 for directors, and $404,972 for vice presidents.
Global Green Skills Report (LinkedIn Economic Graph) — Identifies key trends in green skills and jobs in different sectors around the world, based on data from LinkedIn’s 774 million-plus members. It also provides recommendations for businesses to upskill workers and “close the green skills gap.” Key findings (Feb 2022):
- Hiring for green skills grew almost 40% globally from 2016-2021, but demand for green talent will soon outpace supply
- “[W]e are nowhere close to having sufficient green talent … or green jobs to deliver the green transition”
- Green jobs and technology tend to go “hand in hand”
- Most jobs requiring green skills aren’t traditional green jobs, and some of the fastest-growing jobs are less specialized (e.g., compliance manager, facilities manager)
- Demand for green talent is expanding in all sectors, with the highest intensity of green skills globally found in corporate services, manufacturing, energy and mining, public administration, and construction
- US LinkedIn job listings in "Renewables & Environment" grew 237% over the last five years and are expected to outnumber oil and gas jobs by 2023
The Rise and Role of the Chief Integrity Officer (World Economic Forum) — Explores trends in corporate governance, including how organizations are reassessing their structures, culture, and engagement to support the ongoing transformation of business as a driver of change. (Dec 2021)
The Chief Sustainability Officer 10 Years Later: The Rise of ESG in the C-Suite (Weinreb Group) — Examines the rise of demand for Chief Sustainability Officers (CSOs) within U.S. Fortune 500 companies. Key insights (May 2021):
- More companies hired their first CSO in 2020 than the previous three years combined: Last year, 31 companies hired their first CSO. The field has grown by more than 228% in 10 years, from 29 to 95.
- CSO teams are growing — but responsibility is decentralized: Sustainability teams are expanding, with an average team size of 15 (5 in 2011). Yet, in the corporate leadership hierarchy, CSOs are not quite as close as they once were to the CEO.
- CSO succession is not a guarantee: Some firms have started eliminating the CSO position, which is a potential counterpoint to other data.
- More women; little racial diversity: The percentage of women in CSO roles has almost doubled—women now account for 54% of CSO positions—however, the field remains overwhelmingly white.
- The CSO role is expanding — and shifting: The data finds many companies are now paying more attention to the ‘S’ in the ESG equation, rather than just the ‘E,’ and the broadening of CSOs’ role reflects this trend.
Additional coverage by Sustainable Brands
“The Rise of the Chief Sustainability Officer” (Korn Ferry) explores the nature of the CSO role and how sustainability is integrated into the operations, strategies, culture, and leadership of today's corporate landscape. Researchers interviewed more than 50 CEOs and CSOs in leading organizations worldwide to deliver insight into how sustainability leadership can unlock business resilience, innovation, and future performance. (February 2021)
"The Future of the Chief Sustainability Officer: Sense-Maker In Chief" (Deloitte and Institute of International Finance) surveyed 80 sustainability professionals at 70 financial services firms to understand how their companies are mobilizing to address the ESG imperative and how the role of Chief Sustainability Officer (CSO) is fulfilling their aspirations.
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“State of the Profession 2020” (GreenBiz Group, May 2020) provides an overview of the modern day sustainability professional based on findings from an annual Intelligence Panel member survey and external outreach. Select key findings included the following:
- 67% reported being hired from the outside for their sustainability role in large companies, compared to 45% in 2012.
- 58% of sustainability executives in large companies are women and 54% are women in smaller firms. In 2010, men comprised 60% of sustainability executives in large companies and 54% in smaller firms.
- 75% of VPs, around 57% of directors, and 75% of managers now report having a master’s degree. However, the higher degree doesn’t necessarily translate to higher pay, especially for directors and managers. It is more likely the price of entry into the profession.
- There was a 10% increase in sustainability job postings on LinkedIn and a 7.5% increase in LinkedIn members with a sustainability-related job title in 2019.
CEO & C-Suite Attitudes on Sustainability
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2025 Inclusion, Equity, and Diversity C-Suite Survey Report (Littler) — Surveyed nearly 350 corporate executives across the U.S., on inclusion, equity, and diversity (IE&D) initiatives amid new anti-IE&D government policies, and how companies are adapting their programs. Key findings (March 2025):
- 53% of executives said the Trump Administration’s anti-IE&D policies and rhetoric are likely to decrease corporate commitments in 2025.
- 52% said the rollback of IE&D programs by competitors or peers are likely to decrease commitments.
- 60% said their companies are taking a “wait-and-see” approach, awaiting further developments before making any changes.
- 55% are more worried post-inauguration about IE&D-related lawsuits, government enforcement actions, and/or shareholder proposals.
- 24% said their organizations decreased IE&D efforts in 2024, up from 6% the previous year.
- 61% are considering whether to remove or reduce IE&D-related language from their external communications.
- 22% are considering reducing or eliminating IE&D-focused roles.
69% of CFOs anticipate higher returns from sustainability initiatives compared to traditional investments, according to a survey of 500 CFOs across the U.S., UK, UAE, and India conducted by Kearney and We Don’t Have Time. Among the survey’s highlights (Feb 2025):
- 92% of CFOs say they will invest more in sustainability, with nearly two thirds saying they plan to allocate more than 2.1% % of their revenue to sustainability in 2025.
- 93% say they see a clear business case for investing in sustainability, a sentiment that is consistent across geographies.
- 71% consider sustainability when choosing employee retirement funds.
- 94% incorporate sustainability considerations into their overall investment decisions.
- CFOs are prioritizing tangible, near-term impacts in the following focus areas: increasing the use of sustainable materials, driving sustainable innovation and partnerships, managing energy, reducing waste, and focusing on ESG regulations and ratings.
Staying the Course in an Era of Increased Regulation and Political Volatility (Weinreb Group) — This 7th edition of the Chief Sustainability Officer (CSO) Report analyzes shifting sustainability leadership trends (based on a survey sent to 220 CSOs at U.S. public companies). Insights include (Feb 2025):
- 87% of CSOs say they are spending more time on regulation and compliance, with 60% saying regulatory is their biggest challenge.
- 31% said ESG politicization is one of their biggest challenges in the past two years.
- 90% say they have not changed their approach due to the political landscape, though 24% say they are more careful of what they communicate externally.
- 91% say leadership alignment on sustainability has either stayed the same or increased since 2023.
- In the past two years, the number of non-white CSOs dropped from 26% to 20% (after growing from 10% in 2011).
- The percentage of women CSOs has risen steadily over time, reaching 65% of all CSOs in 2025 (up from 28% in 2011).
91% of CEOs said they are recalibrating their company’s ESG programs amidst evolving investor and stakeholder expectations, according to a survey of 300 CEOs and 380 institutional investors by Teneo. 35% of CEOs said they plan to continue to do what they believe is right but discuss it less publicly, while 23% said they have ramped down their ESG-related programs. 56% of CEOs and 54% of investors remain committed to balancing ESG programs with core business objectives, down 6% and 14% from the previous year, respectively. 94% of CEOs said they plan to continue or expand their company’s Diversity, Equity and Inclusion (DEI) programs, while 0% of investors expressed a desire for companies to end DEI efforts. (Dec 2024)
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The True State of Sustainability (Leafr) — Interviews 50 Heads of Sustainability from leading companies and surveys over 400 additional sustainability leaders to better understand how much sustainability progress companies are making. Key findings (Nov 2024):
- 39% of leaders feel their companies are undertaking sustainability initiatives primarily due to a genuine commitment to sustainability, while another 39% due to a mix of genuine commitment and regulatory requirements.
- 75% report their teams are either severely or very under-resourced to excel.
- 75% express doubt that they will achieve net zero targets.
- 29% feel their sustainability efforts are integrated with the broader business objectives, while 35% do not feel they are aligned at all.
- 89% believed that their business leaders were not fully aware of the potential fines and risk associated with non-compliance.
How can CFOs be confident in value creation without confidence in reporting? (EY) — Surveys over 2,000 finance leaders and 815 institutional investors revealing concerns about sustainability and transparency. Key insights (Nov 2024):
- Less than half (47%) of finance leaders think it’s “very likely” that their organization will deliver against their major sustainability priorities and meet stated targets, such as achieving net zero, on time.
- 55% feel sustainability reporting in their industry risks being perceived as including elements of greenwashing.
- 96% report some problems with the nonfinancial data they receive for reporting, such as data inconsistencies (35%), incomplete data (34%), incorrect data (28%), and out-of-date data (28%).
- 69% say investors ask more questions about nonfinancial drivers of value than two years ago.
- 78% of investors feel that new reporting regulations and standards will have a positive impact on the accuracy and comparability of companies’ sustainability disclosures.
69% of business leaders acknowledge that while they have retained the same climate-related strategies over the last 12 months, they have adapted the language they use both internally and externally to meet changing stakeholder needs, according to a KPMG survey of 1,325 global CEOs. 66% also admit they are not prepared to withstand potential shareholder scrutiny and expectations regarding ESG issues. And 30% say the greatest barrier to achieving their climate ambitions is the complexity around decarbonizing their supply chains. (Oct 2024)
Deloitte 2024 CxO Sustainability Report (Deloitte) — Surveys over 2,100 corporate executives across 27 countries on sustainability strategies. Key findings (Sept 2024):
- Climate change remains a top three issue for C-suite level business leaders (CxOs), with 70% expecting it to have a high or very high impact on their companies’ strategies or operations over the next three years, up from 61% last year.
- 85% say they have increased investments in sustainability in the past year, up from 75% in 2023.
- 45% say they are transforming their business model to address climate change and sustainability in a way that is central to their companies’ strategy.
- 92% believe their companies can grow while reducing greenhouse gas emissions.
- 50% of CxOs have already begun implementing technology solutions to achieve climate or environmental goals, and another 42% say they expect to in the next two years.
- 17% have made significant strides in implementing sustainability efforts. However, 27% have taken minimal actions, while 56% are focusing on just two to three significant actions, such as developing new climate-friendly products, lobbying in support of climate initiatives, or tying senior leaders’ compensation to sustainability performance.
The Visionary CEO’s Guide to Sustainability 2024 (Bain & Company) —Surveys nearly 19,000 consumers and 500 Business-to-Business (B2B) buyers and sellers on sustainability trends.Takeaways include (Sept 2024):
- CEO’s prioritization of sustainability has declined sharply over the past year, as other concerns including AI, growth, inflation and geopolitical uncertainly increase.
- 85% of suppliers are embedding sustainability into what they sell but only 53% of customers say those efforts are meeting all their needs.
- 36% of B2B customers say they would change suppliers if sustainability needs aren’t met.
- 60% of consumers say their climate concerns have increased over the past two years.
- 76% of consumers say practicing a sustainable lifestyle makes a positive difference.
- 54% of consumers in developed markets think living sustainably is more expensive, while 38% in fast-growing markets think it is less expensive.
81% of Chief Financial Officers (CFOs) feel pressure from at least three different stakeholders to take more action on sustainability issues, according to a new Accenture survey. 85% of CFOs expect an increase in mandatory disclosure over the next three years, while just 22% said they are well prepared to report on both climate risks and opportunities and seek external assurance on their disclosures. (July 2024)
54% of CEOs say decarbonizing their companies to reach net zero is a higher priority than it was 12 months ago, according to a survey of 1,200 CEOs from 21 countries by EY. 77% agreed sustainability issues will increasingly impact their supply chain and partners, and 76% agreed that coordinated and consistent action by governments is crucial for effectively addressing climate change. (May 2024)
55% of CEOs expect significant returns on sustainability investments in the next 3-5 years (versus 1-3 years, 19%, and 5-7 years, 25%), according to a survey of 100 CEOs of large companies in the U.S. by KPMG. The survey also found that 42% of CEOs are focusing sustainability efforts on operations (versus products, 24%, and governance, 16%), and that execution of ESG initiatives is CEOs’ top operational priority in the next year (17%), edging out inflation proofing (14%), digitization, supply chain resilience, and improving customer experience (all 11%). (April 2024)
Beyond checking the box: How to create business value with embedded sustainability (IBM Institute for Business Value) — Surveys 5,000 C-suite executives across 22 industries and 22 countries about sustainability’s business impact, with a special focus on companies that “embed” sustainability deep into their organizations, including their strategy, workflows, organization, and decisions. Key takeaways (March 2024):
- Nearly half of executives said they are struggling to fund sustainability investments, while 60% said they have to make trade-offs between financial and sustainability outcomes.
- Spending on sustainability reporting exceeds spending on sustainability innovation by 43%.
- Those companies that embed sustainability (embedders) are 52% more likely to outperform their peers on profitability, with a 16% higher rate of revenue growth.
- 53% of embedders say business benefits are essential for justifying sustainability investments. And only 17% say meeting sustainability objectives is in itself sufficient to justify investment.
- Embedders are 90% more likely to incorporate sustainability factors into their innovation activities.
Embracing a brighter future: Investment priorities for 2024 (Capgemini Research Institute) — 56% of business leaders are optimistic about their future growth, up from 42% the previous year, according to this survey of 2,000 business leaders from 15 countries. Sustainability findings include (Jan 2024):
- 52% of businesses expect to increase their investments in sustainability (up from 33% in 2023).
- 57% said they are likely to increase investments in clean technology in the U.S. and Europe over the next 2-3 years, due to government incentives.
- 61% view a lack of sustainable practices and processes as a long-term existential risk for their organizations.
- 48% say climate change will cause the majority of operational disruptions in the next decade.
- 41% see supply chain vulnerability as a concern, with 45% considering shifting a significant portion of their sourcing or production in the future to politically and economically aligned countries (“friend-shoring”).
Leading for Tomorrow: The Conference Board C-Suite Outlook 2024 (The Conference Board) — Surveys 1,247 executives from the U.S., Europe, Latin America, and Japan about a range of issues from growth plans and geopolitics to AI and ESG. Key ESG findings (Jan 2024):
- Globally, 51% of CEOs say the transition to renewable energy will be significantly positive for their companies, while only 32% of U.S. CEOs say so, and put renewable energy at 20th priority (out of 23) for plans for growth.
- Education, economic opportunity, and greenhouse gas emissions are the top three ESG issues for both boards and CEOs.
- 64% of board directors say ESG is being effectively integrated into business vs. 76% of CEOs.
- 56% of board members say their companies are handling the ESG backlash well, compared with 70% of CEOs and 75% of other C-Suite executives, and with 84% of C-Suite executives with ESG responsibility.
PwC’s 27th Annual Global CEO Survey: Thriving in an age of continuous reinvention (PwC) — While a larger percentage of CEOs are optimistic about global growth prospects (38%, up from 18% in 2023), 45% do not believe their business will be viable in a decade without reinvention (up from 39%) as tech and climate pressures accelerate, according to this survey of 4,702 CEOs across 105 countries and territories. Additional insights (Jan 2024):
- Nearly one-third of CEOs expect climate change to shift the way they create, deliver, and capture value over the next three years, up from less than one-quarter who said as much regarding the past 5 years.
- 76% report having either begun or completed steps to improve energy efficiency, and 58% have made similar progress innovating new, climate-friendly products, services, or technologies.
- 45% report having made progress on or completed incorporating climate risk into financial planning (with 31% noting no plans to do so), and 47% have acted on adaptation to physical climate risks (with 29% noting no plans to act).
- CEOs report that regulatory complexity (54%) and lower economic returns for climate friendly investments (51%) are the biggest barriers to overcome in their efforts to decarbonize.
- And 40% of CEOs report they have accepted lower hurdle rates for climate-friendly investments than for other investments.
68% of CEOs indicate that their current ESG progress is not strong enough to withstand the potential scrutiny of stakeholders or shareholders, according to the KPMG 2023 CEO Outlook. 69% of CEOs also reported having fully embedded ESG into their business as a means to value creation. 35% said they have changed the language they use to refer to ESG both internally and externally. (Oct 2023)
92% of executives plan to increase ESG spending by at least 10%, with 18% planning to increase spending by 50% or more, according to a survey by Bloomberg and Adox Research. The top areas in which firms are prioritizing this spend are ESG benchmarks and indices (29%), company-reported data (23%), ESG scores (20%), and sustainable debt (19%). 99% of executives agree their organizations value ESG data, citing its importance to keep pace with their peers (45%), achieve a competitive advantage (44%), and for regulatory compliance (10%). 64% of respondents considered themselves ahead of the competition, while 30% acknowledged feeling somewhat or significantly behind. (Aug 2023)
Just 28% of Chief Financial Officers (CFOs) described their organization as being “advanced” on its ESG journey, meaning it can drive business innovation, supply chain sustainability and public reporting against ESG goals, according to this annual EY survey of 1,600 CFOs across 32 jurisdictions. 51% said they are at mid-stage, and 21% at early stages. Many also reported that new or emerging reporting requirements will have a significant impact on their tax and finance function (47% for green or sustainability taxes and 41% for the EU Carbon Border Adjustment Mechanism). (Aug 2023)
2023 Global EY DNA of the CFO Report (EY) — Chief Financial Officers (CFOs) ranked ESG programs as the number one long-term priority, along with technology and digital innovation (both 43%). However, 37% also acknowledged pursuing near-term cuts in ESG programs to hit short-term earnings targets, reflecting the contradictory pressures on CFOs according to this survey of 1,000 Chief Financial Officers and senior finance leaders of companies with revenues over $1 billion and across 13 industry segments. 50% of respondents said they are meeting earnings targets by cutting long-term priorities and 67% said “there are tensions and disagreements within our leadership team on how to balance short-term and long-term priorities.” 32% noted differences of opinion on how to balance “short-term financial performance with long-term investments into sustainability priorities.” Overall, 72% of respondents said “traditional back-office behaviors and mindsets” are slowing the modernization of the function of the CFO. (July 2023)
The ESG Conundrum (IBM) — Reports that more than 70% of executives view ESG as a revenue enabler, and 45% expect ESG efforts to add to profitability. The study surveyed 2,500 executives on ESG strategy, approach, and operationalization, and 20,000 consumers regarding their attitudes toward sustainability. Two-thirds of consumers surveyed said that environmental sustainability and social responsibility are very or extremely important to them. More than 40% said they were willing to accept a lower salary to work for a company that shares these values. But only 20% of consumers reported that they trust company statements about environmental sustainability, down from 48% in 2021. (April 2023)
State of Sustainability (Forbes Research) — The share of companies that consider sustainability a top-three priority rose from 26% in 2020 to 43% in 2023, based on a survey of 1,000 global corporate leaders from companies with at least $500 million in annual revenues. Other findings include (March 2023):
- Three initiatives with the largest percentage growth in the next 12 months include: ensuring sustainable supply chains (66%), lowering greenhouse gas emissions (61%), and reducing plastic waste (38%);
- Companies with chief sustainability officers are more likely to hit emission reduction goals, with 56% of companies with CSOs on track to halve emissions by 2030 vs. 46% without a CSO;
- 42% of respondents listed unclear regulations and requirements as the biggest sustainability reporting and accountability challenge.
70% of U.S. corporate leaders said they will not wait for the Securities and Exchange Commission to finalize its climate disclosure rules, and will proceed with compliance regardless of when the rules become law, according to
a new survey
by PwC and Workiva of 300 senior-level executive at public companies with at least $500 million in revenues. 95% said their companies are prioritizing ESG reporting more now than before the rule was proposed, though 40% admitted their companies are not fully prepared to meet the expected disclosure requirements. All executives surveyed shared that their companies had taken at least one action in anticipation of the rule becoming law, with many taking more than one, including: investments in ESG reporting technology (40%) and in people (33%), and accelerating (35%), or establishing, if necessary (33%), climate ambitions or goal timelines.
Workiva and PwC US will
host a free webinar
on March 14 at 2 p.m. EST exploring how companies are preparing for the SEC climate disclosure requirements and planning to address barriers to compliance. (March 2023)
24% of EU CEOs believe their companies will be highly or extremely exposed to the impact of climate change on a five year outlook, with a certain or high probability of significant financial loss, according to a new PwC survey of 1,254 CEOs in 20 EU member states. 14% of CEOs think they’ll be exposed to climate impacts on a one year outlook, and just 16% said they will be only minimally exposed to the impact of climate change over the next five years. Nearly 40% of CEOs also support the need for radical change in their businesses, saying that their businesses won't be viable in ten years if they continue on their current path. (March 2023)
Deloitte 2023 CxO Sustainability Report (Deloitte) — Companies are feeling broad pressure to act across stakeholder groups—from the board and management to customers and employees, according to this survey of over 2,000 Chief Experience Officers (CxOs) in 24 countries. Key takeaways (Jan 2023):
- 97% of CxOs expect climate change’s impact on their company’s strategies and operations to be at least moderate (with 61% seeing it as high or very high);
- Climate change is already affecting companies, with 46% of respondents pointing to scarcity/cost of resources; 45% changing consumption preferences; 43% regulation of emissions; 41% operational impacts of climate-related disasters; and 41% shareholder pressure;
- More than half of CxOs said employee activism on climate matters has led their organizations to increase sustainability actions over the last year—24% of which said it led to a “significant” increase;
- 65% said the changing regulatory environment has led their organization to increase climate action over the last year;
- However, only 29% believe the private sector is “very serious” about addressing climate change and only 46% said ensuring a just transition is “extremely important” to their organizations.
PwC’s 26th Annual Global CEO Survey (PwC) — PwC surveyed 4,410 chief executives from 105 countries and territories in its 2023 CEO Survey. Key insights include (Jan 2023):
- Nearly 40% of CEOs think their company will no longer be economically viable a decade from now, if it continues on its current path;
- Over the next 10 years, CEOs think industry profitability will be affected by changing customer preferences (56%), regulatory changes (53%), skill shortages (52%) and technology disruptions (49%), supply chain disruptions (43%) and the energy transition (37%);
- 50% of CEOs expect climate risk to affect their cost profiles (and 42% their supply chains) over the next 12 months at least to a moderate extent. Only 24% worry about climate risk to their physical assets.
93% of CEOs report experiencing 10 or more simultaneous challenges to their businesses and 87% warn that current levels of disruption will limit delivery of the UN Sustainable Development Goals, according to a new survey by the UN Global Compact and Accenture. This survey, based on responses by 2,600 CEOs from 128 countries and 18 industries, also found that 72% of CEOs agreed they were responsible for their companies’ sustainability performance and that 98% of CEOs agreed sustainability is core to their role, up 15% over 2013. 66% of CEOs also said that their companies are engaging in long-term strategic partnerships to build resilience. (Jan 2023)
A new survey by KPMG found that one-third of CEOs both in the U.S. and globally said they had already paused or reconsidered ESG plans in preparation for a possible recession. 60% of U.S. CEOs and 50% of CEOs worldwide said they plan to pause or reconsider their companies’ efforts in the next six months. At the same time, 70% of U.S. CEOs and 45% of CEOs worldwide said ESG improves their financial performance. (Oct 2022)
2022 Climate Check (Deloitte) — Most executives are optimistic about the outcomes of their sustainability initiatives according to a new survey of 700 executives across 14 countries and all major sectors. 87% said that investing in environmentally sustainable practices has long-term economic benefits and 75% said their businesses can continue to grow as they reduce carbon emissions. 37% said they plan to accelerate sustainability efforts over the next 12 months. However, 45% reported that the Ukraine war and inflation have led them to cut back their climate and sustainability strategies over the next year. Two-thirds of executives also saw greenwashing as a serious concern in their industries with 63% saying governments should crack down on greenwashing to help businesses address climate change. (Oct 2022)
Own your impact: Practical pathways to transformational sustainability (The IBM Institute for Business Value, with Oxford Economics) — Surveys 3,000 CEOs from over 40 countries and 28 industries as part of the 25th edition of the IBM C-suite Study series, revealing that sustainability has become increasingly core to the mainstream business agenda. Authors define “transformational sustainability” as occurring “when sustainability becomes an integral part of an organization’s business strategy” and lay out a continuum of stages that companies should move through to achieve transformation.
Key survey findings include (May 2022):
- The majority (51%) of executives now cite it as a top near-term challenge above regulation, cyber risk and technology infrastructure, and supply chain disruption—a significant increase from 32% in 2021.
- Pressure from board members and investors to increase sustainability ranked significantly higher than from customers and employees, though demand has taken on greater intensity from all stakeholders.
- More than 80% of CEOs say sustainability investments will drive better business results in the next 5 years, but many (57%) still consider calculating ROI on sustainability a major hurdle.
43% of CEOs surveyed define their current sustainability level as “Operational,” and 13% at the “Transformational.”
CEOs are Ready to Fund a Sustainable Transformation (conducted by The Harris Poll for Google Cloud) — Finds most C-suite and VP-level executives of large global companies believe investing in sustainability is a priority but are concerned about measuring and communicating impact authentically. Highlights (April 2022):
- 74% agree that sustainability can drive powerful business transformations.
- 80% gave their organization an above-average rating for their environmental sustainability efforts.
- 58% said their organization is guilty of greenwashing, including 72% of respondents in North America.
- 36% said their organization has measurement tools in place to track their progress in detail.
C-suite Insights: How Purpose Delivers Value in Every Function and for the Enterprise (Deloitte)
— Assesses the extent to which purpose is a priority for C-suite leaders and their organizations, as well as key challenges and opportunities they face. It finds that
“A clear, authentic, and well-integrated approach to purpose is now a strategic imperative” but “implementation remains a challenge.” One in 5 says their company prioritizes and integrates purpose but doesn’t prioritize measuring and reporting on progress. (Feb 2022)
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2022 Disruption Index (AlixPartners) — Identifies over 3,000 global CEOs’ top areas of greatest concern: supply chain disruption, workforce crises, and digital transformation. It also identifies major forces that AlixPartners believes will transform the global economy in the coming years, including the climate transition and technological acceleration. Key findings (Feb 2022):
- 77% think their actions to address supply chain disruption aren’t effective enough, but 58% are focused on short-term solutions (e.g., paying more for materials, raising prices).
- 94% expect their business models to drastically change over the next three years.
- 78% believe adopting digital tools is critical to their company’s survival, and 46% of CEOs say their biggest challenge is making poor use of the tools and technology in which they’ve invested.
- 65% are concerned their employees won’t have the skills needed to succeed in the future.
- 72% are worried about losing their jobs due to disruption in their industry.
Global CEO Survey (PwC) — Analyzes nearly 4,500 CEOs’ sentiments on global trends and identifies priorities to help CEOs deliver on diverse stakeholder demands. It concludes that CEOs are more concerned with near-term financial needs than with challenges such as climate change and social inequality, which seem to pose smaller immediate threats to revenue. Key findings (Jan 2022):
- 22% of companies have made a net-zero commitment, and large companies are three times more likely to have one than the average company
- Companies without a net-zero target say they don’t have one because they lack a sectoral decarbonization approach (52%), don’t think they “produce a meaningful amount of GHG emissions” (57%), or can’t measure their emissions (55%)
- 37% of companies incorporate GHG emission targets in their long-term strategy, and 13% tie the targets to CEOs’ annual bonus or long-term incentive plan
- CEOs are concerned that cyber risks (49%), climate change (33%), and social inequality (18%) will negatively impact their company over the next 12 months
2022 Deloitte CxO Sustainability Report: The Disconnect Between Ambition and Impact (Deloitte) — Examines the evolvement of C-suite executives’ (CxOs) and companies’ sustainability-related concerns and actions, and compares the actions of “climate leaders” and “lagging orgs.” Nearly 79% of CxOs think the world is at a tipping point for responding to climate change (up from 59% just eight months prior). Climate leaders expect climate change to impact their business strategies in the coming years (73% vs. 50% of laggards) and believe their sustainability efforts will continue to have a positive impact on customer satisfaction (55% vs. 39%) and investor returns (45% vs. 23%). (Jan 2022)
EY CEO Survey 2022 (EY) — Examines how over 2,000 global CEOs are responding to the pandemic and reframing their company’s future, including strategic drivers and critical risks to growth. It concludes that CEOs are “[looking] beyond short-term pressures to invest in long-term value creation in 2022.” (US findings can be found here.) Key ESG findings (Jan 2022):
- 99% factor ESG and sustainability concerns into their buying strategies, and 6% have left deals in the last year due to ESG-related concerns.
- 73% of US CEOs have adopted ESG for strategic reasons (e.g., competitive advantage, lower cost of capital) rather than due to regulator pressure. Comparatively, in April 2019, only 43% saw ESG as a critical long-term value driver.
- 82% of US CEOs see ESG as a value driver for their business for the next few years, and almost all of them have a sustainability strategy.
- A quarter of US CEOs say strengthening their ESG ranking or their “sustainable footprint” is their top incentive for M&A.
List of CEO & C-Suite Attitudes on Sustainability, 2021-2019 (PDF)
Megatrends Influencing Business Sustainability
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Sustainability Leaders 2024 Survey (GlobeScan and ERM Sustainability Institute) — Surveys 484 sustainability experts worldwide on the priorities and forces shaping the sustainable development agenda. Key findings (July 2024):
- Legislation promoting sustainability is viewed as the most important positive development in the past year.
- 57% of experts say there is a significant backlash against the sustainability agenda (83% in North America).
- Climate change continues to be rated as the most urgent sustainability challenge (94%). Food security has increased 5%, moving up to fifth at 84% (after biodiversity loss, deforestation, and water scarcity).
- The forest products and life sciences/biotechnology sectors are viewed most positively by experts on managing their transition to sustainable development.
Sustainable Signals: Understanding Corporates’ Sustainability Priorities and Challenges (Morgan Stanley Institute for Sustainable Investing) — Assesses what drives corporations to pursue sustainability, drawing on survey results from more than 300 companies with more than $100 million in revenue across sectors and regions. The top reason was sustainability as a value creation opportunity (at 50%). Other reasons included compliance (48%), sustainability is a significant challenge in their industry that they have to react to (46%), and expectations from customers (45%), board (45%), or investors (44%). At the bottom of the list was pressure from civil society (26%). Asked about barriers to sustainability, 70% said required investment is either a very (31%) or somewhat significant barrier. Other very significant barriers include macroeconomic uncertainty (28%), public anti-ESG sentiment (22%), and lack of sustainability experience (19%). 23% acknowledged that climate change is already having an impact on their companies. And 55% said sustainability criteria comes into play in key business decisions, although only 37% said their boards had sustainability expertise. (June 2024)
The Elephant in the Sustainability Room (Business for Social Responsibility (BSR)) — Examines the tension between business growth and implementation of sustainability targets. The report explores potential solutions to this tension and how they can be leveraged by companies to credibly deliver on long-term environmental commitments. It discusses transformative business models such as circularity, sufficiency-based models, regenerative businesses, and impact businesses and social enterprises. It also highlights other factors needed for business transformation, including corporate governance and an enabling policy and financial environment. (May 2024)
Sustainable Value Creation: Closing the gap between stated commitments and operational realities (GlobeScan and Salesforce) — 93% of sustainability, finance, and technology leaders think sustainability is very or fairly important to the success of their organizations, according to this survey of 234 senior leaders. However, the report identifies four gaps (data, integration, capital, and implementation) limiting companies from making meaningful progress on corporate sustainability commitments (Feb 2024):
- Only 27% report having access to high-quality sustainability data.
- Only 37% perceive sustainability as very integrated across core business operations.
- While about half of leadership teams are highly focused on sustainability, only about half of those are getting the level of capital necessary to mitigate the risks and impacts or seize opportunities.
- Companies primarily see the value of sustainability for their reputation not implementation in their core operations, with 73% reporting high value for enhancing brand/reputation, while only 44% reporting high value for ensuring a stable supply chain and 42% for reducing costs.
Global Risks Report 2024 (World Economic Forum) — Misinformation/disinformation, Extreme weather events, and societal polarization are the top three short-term risks, while extreme weather, critical change to Earth systems, and biodiversity loss and ecosystem collapse are the top three long-term concerns, according to this survey of over 1,400 global risk experts, policymakers, and industry leaders. 30% of experts perceive an elevated chance of global catastrophe over the next two years, while 63% see this in the next 10 years. (Jan 2024)
AXA Future Risks Report 2023 (AXA) — Measures and ranks the perception of evolving and rising risks among both experts (3,500 surveyed in 50 countries) and the general population (20,000 in 15 countries). In this tenth edition, for the first time, both experts and the general public ranked climate change as the #1 risk in every region. Cybersecurity risks continue to rank second among experts and have entered the top three for the general population for the first time. The report also highlights the concept of the polycrisis—the inherent interconnectedness of risks—and finds that more than half of both experts and the public (54% and 52% respectively) see global solutions as the most effective way to address future risks. (Nov 2023)
Corruption and integrity risks in climate solutions: an emerging global challenge (Grantham Research Institute on Climate Change and the Environment and Centre for Climate Change Economics and Policy) — Recognizing the risk that corruption and poor integrity bring to the implementation of climate policies and projects, this report identifies three categories of corruption and integrity risk related to climate solutions, namely 1) the misuse and diversion of financial flows; 2) Climatewashing, and 3) Abuse of process. Along with defining and detailing types of these three categories, the report describes solutions including: 1) More robust governance structures; 2) Strengthened enforcement through existing anti-corruption laws; 3) Drawing lessons from the broader anti-bribery arena; and 4) Adopting a “rights-based approach to climate solutions” to actively respect the rights of communities. (October 2023)
Future Forces 2023 Report (Ashurst) — Reports that the transition to net zero was identified by executives to be the most attractive opportunity but also the toughest challenge to business in the next decade, out of six megatrends analyzed. The other five were changing global dynamics, digitalization, demographic change, skills for the future, and resilient cities. Two thirds of the 300 executives surveyed said that they had not given sufficient consideration to the six megatrends. In response, the report recommends that companies expand risk horizons and become more nimble in responding to risk; take seriously net zero and ESG commitments; become creative in securing needed skills; adapt to evolving value systems, aligning their company’s reputation with values that are important to the emerging workforce; build capabilities to harness technological advances; and practice transparency with all stakeholders. (July 2023)
Global Risks Report 2023 (World Economic Forum) — This report, drawing on the views of more than 1,200 global risk experts, policymakers, and industry leaders, assesses both leading short-term and long-term global risks. Top ranked short-term risks (risks over a 2-year period) include cost of living increases, extreme weather events, geoeconomic confrontation, and failure to mitigate climate change. Of the top long-term risks (over 10 years), six are environmental, including the top four: failure to mitigate climate change; failure to adapt to climate change; extreme weather events; and biodiversity loss and ecosystem collapse. (Jan 2023)
Work toward net zero (Deloitte) — Explores the impacts of climate change and decarbonization on the workforce. More than 800 million jobs worldwide — around a quarter of the global workforce today — are highly vulnerable to climate extremes and economic transition impacts, such as through disruptions of the agricultural and tourism sectors or the decline of emissions-intensive energy sectors. But more than 300 million additional jobs can be created by 2050 from the net-zero transition and generate a $43 trillion benefit to the global economy. Key will be to make this transition actively, using effective policy that will help prepare workers for the transition and limit the number of workers left behind. (Nov 2022)
Closing the Sustainability Skills Gap (Microsoft) — More than 3,900 companies around the world have issued climate pledges, but do not currently have the workforce with the necessary skills to move from pledges to progress, according to a new report by Microsoft based on interviews and surveys with nearly 250 employees at 15 companies whose jobs have sustainability commitments, either centrally or peripherally. There is a “huge sustainability skills gap” both in specialized knowledge and basic fluency in sustainability and climate science. To combat this, employers must quickly upskill their workforce and, longer-term, schools will need to provide sustainability education, at the primary and secondary levels, and at higher education institutions. (Nov 2022)
AXA Future Risks Report 2022 (AXA) — This ninth edition of AXA’s global survey on risks finds that climate change was at the top of experts’ risk list in all geographies for the first time. The survey is based on responses from 4,500 risk experts from 58 countries and 20,000 people from 15 countries, and explores risks based on potential societal impact over the next 5-10 years. Climate change was also the top concern in the US general population, also a first. Experts ranked geopolitical stability as the second top risk and cybersecurity as the third. (Oct 2022)
Global Risks Report 2022 (World Economic Forum) — Assesses global economic, environmental, geopolitical, societal, and technological risks that could pose a significant threat to our global system over the next 10 years. WEF finds that “The global divergence” in social and economic recovery from the pandemic “will create tensions … that risk worsening the pandemic’s cascading impacts and complicating the coordination needed to tackle common challenges.” The top 10 most severe risks include (in order): climate action failure, extreme weather, biodiversity loss, social cohesion erosion, livelihood crises, infectious diseases, human environmental damage, natural resource crises, debt crises, geoeconomics confrontation. (Jan 2022)
Global Trends 2040: A More Contested World (The National Intelligence Council) — Reviews critical factors that will impact national security and the global geopolitical environment over the next 20 years. Warns more frequent and intense global challenges—in the form of disease outbreaks, financial crises, negative effects of climate change, and new technologies—are likely to stress already brittle systems of government and international organizations over the next two decades. (April 2021)
“The Global Risks Report 2021” (World Economic Forum, January 2021) assesses the impact and likelihood of global economic, environmental, geopolitical, societal, and technological risks that could pose a significant threat to our global system over the next ten years. WEF finds that “the immediate human and economic cost of COVID-19 is severe.” The top 7 risks, in terms of likelihood and impact, included the following:
Top 7 global risks in terms of likelihood:
- Extreme weather
- Climate action failure
- Human environmental damage
- Infectious diseases
- Biodiversity loss
- Digital power concentration
- Digital inequality
Top 7 global risks in terms of impact:
- Infectious diseases
- Climate action failure
- Weapons of mass destructions
- Biodiversity loss
- Natural resource crises
- Human environmental damage
- Livelihood crises
“From System Shock to System Change: Time to Transform” (Forum for the Future, October 2020) examines five key dynamics that will define this decade and outlines four trajectories emerging from the COVID-19 crisis. The five dynamics examined in the report include: Biosphere breakdown, economic crisis and reform, tech and governance nexus, equitable transitions, and regenerative openings.
“World Risk Poll” (Lloyd’s Register Foundation and Gallup, October 2020) analyzes survey responses from 150,000 people in 142 countries to better understand the risks people face and how those risks are perceived. Select key findings included the following:
- 27% of women reported feeling less safe than they did five years ago.
- Experience of a serious injury while working was associated with experience of mental health issues.
- 17% of people globally said they or someone they personally know suffered serious harm in the past two years from the food they eat, and 14% reported having experienced serious harm from the water they drink.
- Almost 70% of people worldwide recognized the threat from climate change in their country in the next 20 years.
- People in 25% of the countries and territories polled did not trust their governments to provide critical basic infrastructure.
“Future Forces Disrupting Sustainable Business” (GEMI, June 2020) examines four external drivers of change that could disrupt business models over the next ten years:
- New Spectrums of Resources: Emerging at incredible speed and creating opportunities to rethink resource use, R&D investments, and product development, lead businesses towards the creation of more sustainable products.
- New Spectrums of Value Creation: Enabling new kinds of sustainable, distributed production systems as the norm.
- New Spectrums of Time: Enabling businesses to innovate and create more sustainable and profitable strategies by using long-term planning as a competitive advantage.
- New Spectrums of Meaning: Pushing sustainability into the forefront of concerns among young people, demanding new approaches to stakeholder engagement.
“Megatrends: The Forces Shaping Our Future” (BlackRock, August 2019) lays out five megatrends that will shift the future global economy. The five megatrends include the following:
- Technological breakthrough
- Demographics and social change
- Rapid urbanization
- Climate change and resource scarcity
- Emerging global wealth
“The Global Risks Report 2020” (World Economic Forum, Jan 2020) assesses the impact and likelihood of 30 global economic, environmental, geopolitical, societal, and technological risks that could pose a significant threat to our global system over the next 10 years. The top 10 risks, in terms of likelihood and impact, included the following:
Top 10 global risks in terms of likelihood:
- Extreme weather
- Climate action failure
- Natural disasters
- Biodiversity loss
- Human-made environmental disasters
- Data fraud or theft
- Cyberattacks
- Water crises
- Global governance failure
- Asset bubbles
Top 10 global risks in terms of impact:
- Climate action failure
- Weapons of mass destruction
- Biodiversity loss
- Extreme weather
- Water crises
- Information infrastructure breakdown
- Natural disasters
- Cyberattacks
- Human-made environmental disasters
- Infectious diseases
“The Future of Sustainability 2019: Driving Systems Change in Turbulent Times” (Forum for the Future, 2019) explores 7 global trends that are set to impact our ability to address global challenges. The seven global trends include the following:
- The plastics kickback
- Migration and the climate crisis
- Nationalism marches again
- The “onlife”
- The rise of participatory democracy
- Changing consumerism in Asia
- Biodiversity in free fall
Thought Leadership on Sustainability Strategy
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The Governance Playbook for Climate Standard-Setting (Stern Strategy Group) — Offers practical advice for improved governance of climate standard-setting organizations, drawing on conversations with key stakeholders in the area. The report introduces a playbook of best practices for better strategic clarity and procedural legitimacy in climate standard-setting, including discussing funding sources, legal structures, recruiting and retaining talent, and implementing fair and transparent processes. Register here for a webinar hosted by BSR to learn more (date and time to be determined). (May 2024)
Catching the Wave: Seizing Opportunities of Sustainability Transformation (World Business Council for Sustainable Development (WBCSD) and ERM Sustainability Institute) — Based on engagements with over 130 business executives and sustainability experts, this report presents a sustainability transformation framework to help companies navigate change and seize opportunities. After examining barriers for action, the report sets out the steps companies can take now to translate sustainability strategies into commercial success, operational efficiency, and resilience. Steps focus on five areas including: governance, strategy, innovation, networks, and integration. (May 2024)
The Visionary CEO’s Guide to Sustainability (Bain & Company) — Explores key business sustainability questions, including company purpose; consumer preference; scaling green solutions; the circular economy; and policy responses. The report also shares sector perspectives on Energy, Food and Agriculture, and Banks. Findings include (Dec 2023):
- Globally, 64% of consumers are highly concerned about sustainability, with consumers in fast-growing markets more concerned (e.g. 85% in India and 81% in Brazil).
- ESG considerations factor into brand purchases, with 35% of baby boomers avoiding a purchase because of negative employee treatment and 30% of Gen Z rejecting a brand because of a company’s inability to track its DEI record.
- On average, U.S. consumers say they are willing to pay 11% more for sustainable products, but companies charge an average 28% premium.
- 75% of executives believe they have not effectively embedded sustainability into their business.
- 24% of companies are not on track to meet their Scope 1 and 2 targets, and 35% are not on track to meet their Scope 3 targets.
- Executives expect the share of revenue from circular products and services to grow 30% by 2030 (from 2021 levels).
Integrated Performance Management (IPM) framework (WBCSD and AICPA & CIMA) — This new IPM Framework provides a roadmap for implementing a performance management system that aligns with the organization’s purpose and value, embraces multi-capital, multi-stakeholder, long-term value creation principles and places the workforce at the center of business success. The framework is designed for senior business executives involved in strategy, finance and sustainability to connect strategy with performance and incentives more effectively. The framework is supported by an IPM maturity model, which provides guidance on the steps companies can take to transition from traditional performance to an integrated performance management approach. (Oct 2023)
The Breakthrough Effect: How to Trigger a Cascade of Tipping Points to Accelerate the Net Zero Transition (Systemiq) — Examines positive climate tipping points, where a zero-carbon solution advances to a point that it outcompetes the existing high-carbon solution, driving exponential growth in the adoption of the new solution and rapid decline of the old. The report also explores three “super-leverage points,” where a small intervention can not only cut emissions in one key sector but also support faster changes in other parts of the economy. The three include (April 2023):
- Mandates for the sale of electric vehicles, which could lead to cheaper batteries helping solar and wind scale-up;
- Mandates requiring “green ammonia” to be used in the manufacturing of agricultural fertilizers, which could lead to cheaper hydrogen and the decarbonization of shipping and steel; and
- Public procurement of alternative, plant-based proteins, which could reduce emissions from livestock and pressure on land conversion.
Systems Change for a Sustainable Future (Deloitte and RMI) — Lays out a new approach for corporate climate action in an era of rapid disruption, helping guide businesses on how to adopt systems thinking to accelerate corporate climate action, both to gain business advantages and avoid risks. Responding with incremental or compartmentalized initiatives, rather than systemic changes, could lead to missed business opportunities, investment in stranded assets, or even the failure of the enterprise. The report provides a primer on systems transformation, including its five phases, and how to harness these for business success. (March 2023)
Markets of Tomorrow and Jobs of Tomorrow (World Economic Forum) — This pair of reports shows how improved public-private collaboration can drive investment to build new markets and create high-quality jobs while making progress towards societal and environmental goals. Markets of Tomorrow, based on a survey of 12,000 global executives, finds that agricultural technologies, education technology, and energy-related technologies (such as battery and other storage technology) are seen by businesses as the most strategically important over the next 10 years in over 120 economies. Jobs of Tomorrow finds that in 10 major economies, 76 million additional jobs are needed by 2030 in green and social sectors including health, education, agriculture, and energy. (Jan 2023)
Introduction to Just Transition — A Business Brief (UN Global Compact) — The UN Global Compact launched new guidance for business to help understand and apply the principles of a just transition, which “leverages the net-zero transition to advance decent work, promote social inclusion and eradicate poverty.” The brief outlines seven priority actions including: setting policies to respect rights at work; engaging with worker organizations; integrating just transition principles into long-term business plans; measuring actions; and partnering with governments and regional/sectoral initiatives. (Sept 2022)
The Intersection of Business and Politics (Brunswick Group) — Warns about “The Talking Trap”—the danger of corporate executives impulsively speaking out on social issues unrelated to their company’s core business. Key findings (Dec 2021):
- 63% of corporate executives think companies should speak out on social issues in American life, but 44% of 2020 voters said companies should only do so if the issue directly relates to the company’s core business
- "Reflexive messages fall flat. ... If your organization decides to respond to an emerging issue, engage with humility, vulnerability, and enthusiasm on the issues and in ways that are most relevant to your organization."
- "Organizations need to be ready to back it up with an investment that is as tangible as it is earnest — donations of cash, donations of product, donations of your employees’ paid time, and with your daily business practices."
A Compass
for Just and Regenerative Business
(Forum for the Future, WBCSD) — Defines key outcomes of a “just and regenerative” business approach.
It offers a
“Business Transformation Compass” to help leaders understand their business’s current mindset and redefine their sustainability ambitions, as well as
practical guidance
to help companies transform business functions while addressing social and environmental challenges. CEF members
Kimberly-Clark
and Unilever provided input for the report. (Nov 2021)
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Everything-as-a-Service (XaaS): How Businesses Can Thrive in the Age of Climate Change and Digitalization (Systemiq) — Presents an economic, social, and environmental case for industrial companies transitioning to XaaS business and operating models, with a focus on the manufacturing sector. Offers 3 XaaS use cases, including total cost of ownership and quantified material and CO2 impacts. A toolkit illustrating 4 critical design blocks for XaaS models can be found here. (Sept 2021)
Ceres released the Ceres Roadmap 2030, which provides a “practical 10-year action plan to help companies strategically navigate this new and ever-changing business reality and thrive in the accelerated transition to a more equitable, just and sustainable economy.” (October 2020)
“The Future of Nature and Business” (World Economic Forum and AlphaBeta, July 2020) sets out how 15 transitions in three socio-economic systems — food, land and ocean use, infrastructure and the built environment, and energy and extractives — could generate up to $10.1 trillion in annual business value and create 395 million jobs by 2030. The report estimates that $2.7 trillion of total annual investment would be required through 2030 to scale the transitions.
“Make Up the Future: Levers of Change for a Sustainable Cosmetics Business” (Quantis, May 2020) features insights, case studies, and infographics to help beauty brands prioritize efforts on the topics that will have a meaningful impact, identify opportunities for collaboration, and accelerate industry-wide action on sustainability. The report highlights examples from Chanel, The Estée Lauder Companies, L’Oréal, and more.
"Weaving a Better Future: Rebuilding a More Sustainable Fashion Industry After COVID-19" (Boston Consulting Group, Sustainable Apparel Coalition and Higg Co, May 2020) offers four actions that business decision makers and sustainability professionals can take to avoid backsliding on progress and actively prepare for a changing fashion industry.MORE »