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2022 Deloitte CxOSustainabilityReport

CxOs’ apprehensions about the planet’s climate have increased over the last several months, as has their optimism that immediate action can make a difference. But there are multiple disconnects between these business leaders’ opinions and motivations, the actions their organizations are taking, and the impact they’re having.

Download the Deloitte 2022 CxO Sustainability Report >

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Business leaders have a unique responsibility to help the world transition to a lower-carbon future. Are they up to the challenge?

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The disconnect between ambition and impact

During September and October 2021, Deloitte polled over 2,000 C-suite executives across 21 countries to examine business leaders’ and companies’ concerns and actions when it comes to climate change and environmental sustainability.

Climate weighs heavily on the minds of the world’s executives. However, there is also a disconnect between ambition and impact. Organizations are struggling to implement actions that demonstrate they have embedded climate considerations into their culture and have the senior leader buy-in and influence to effect meaningful transformation.

The report further explores the disconnect between ambition and impact as well as steps CxOs can take to start to bridge the gap.

89% of executives agree there is a global climate emergency

The world is at a tipping point

Almost 79% of executives see the world at a tipping point for responding to climate change compared to just 59% eight months prior. Despite the gravity of the moment, there is a prevailing sense of optimism as 88% (compared to 63% eight months prior) agree that with immediate action, we can limit the worst impacts of climate change.

Agree/strongly agree

With immediate action, we can limit the worst impacts of climate change and move toward an improved future.
Jan–Feb 2021
(n = 750)
 
Sep–Oct 2021
(n = 2,083)
 
The world is at a tipping point for responding to climate change, and the future can go either way.
Jan–Feb 2021
(n = 750)
 
Sep–Oct 2021
(n = 2,083)
 

CxOs are feeling pressure to act. Almost all respondents (97%) indicate that their companies have already been negatively impacted by climate change. Additionally, stakeholder groups—including regulators, shareholders, consumers, and employees—are all adding to the pressure to act.

Regulators/government77%Board members/management75%Consumer/clients75%Civil society (e.g., media, activists)72%Shareholders/investors71%Competitors/peers66%Employees65%Banks/lenders55%

Which of the following actions/adaptations has your company already undertaken as part of its sustainability efforts?

While companies are acting, they are less likely to implement actions that demonstrate they have embedded climate considerations into their culture and have the senior leader buy-in and influence to effect meaningful transformation.

Top actions taken
 
Using more sustainable materials (e.g., recycled materials, lower-emitting products)
 
Increasing the efficiency of energy use (e.g., energy efficiency in buildings)
 
Using energy-efficient or climate-friendly machinery, technologies, and equipment
 
Training employees on climate change actions and impacts
 
Reducing the amount of air travel post-pandemic
Harder-to-implement, needle-moving actions
 
Developing new climate-friendly products or services
 
Requiring suppliers and business partners to meet specific sustainability criteria
 
Updating/relocating facilities to make them more resistant to climate impacts
 
Incorporating climate considerations into lobbying/political donations
 
Tying senior leaders’ compensation to environmental sustainability performance

Actions and characteristics that set climate leaders apart

The survey revealed a group of leading organizations—19% of the sample—who have implemented at least four of five “needle-moving” sustainability actions, as well as lagging organizations (those who have implemented one or none of these actions).

Climate-leading organizations pursue the future with purpose. They are more concerned, more active, and more likely to see the benefits of their climate strategies.

Leaders are more concerned

% who expect climate change to have a high/very highimpact on their org's strategies over next three years73%% indicating they are “very concerned” about climatechange74%

Leaders are more active

Average number of actions (out of 15) already undertakenby companies as part of their sustainability efforts73%% who plan to achieve net-zero carbon emissions by 2030 orbefore82%

Leaders see greater benefits to their climate strategies

I believe my company’s current environmental sustainability efforts have/will have a positive impact on...

Customer satisfaction55%Addressing climate change53%Innovation around offerings/operation50%Investor returns and/or satisfaction45%Revenue from new business45%Employee recruitment and retention44%Cost of investment40%Revenue from longstanding business38%
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A decisive decade to act

Bold actions resulting in measurable impact are needed to accelerate the pace of intervention while there’s still time to limit the damage.

Download the Deloitte 2022 CxO Sustainability Report

View the report press release >

Connect to Deloitte’s Global Climate & Sustainability hub >