The third edition of Deloitte’s 2024 CxO Sustainability Report shows that climate change remains a top three issue for global C-suite level business leaders (CxOs), surpassing political uncertainty, competition for talent, and the changing regulatory environment, among others. 

The report surveyed over 2,100 executives across 27 countries, indicating there is no retreat from sustainability action by businesses. Instead, there is a notable increase in investment in sustainability efforts and early but important signs that climate action is moving to the heart of many companies’ overall business strategies.

According to the authors, a key indicator of climate’s staying power on leaders’ agendas is that 85% of CxOs say they have increased investments in sustainability in the past year—up from 75% in 2023—and half have started to implement technology solutions to help achieve climate goals. 

Besides, CxOs anticipate that climate change will significantly impact their companies’ strategies and operations over the next three years, with 70% expecting a high or very high impact, up from 61% last year. Nearly half (45%) say they are transforming their business model to address climate change and sustainability in a way that is central to the organization’s strategy.

Top actions taken

• Using more sustainable materials (51%)
• Implementing technology solutions to help achieve climate or environmental goals (50%)
• Increasing energy efficiency (49%)
• Purchasing renewable energy directly, contractually or through renewable energy certificates (49%)
• Developing new climate-friendly products or services (48%)

Harder-to-implement, needle-moving actions

• Developing new climate-friendly products or services (48%)
• Requiring suppliers and business partners to meet specific sustainability criteria (47%)
• Reconfiguring operations, infrastructure, and/or supply chain to be more climate-resilient (46%)
• Lobbying for or making political donations in support of climate initiatives (44%)
• Tying senior ‘leaders’compensation to environmental sustainability performance (43%)

“Executives are beginning to see more tangible benefits from taking climate action for their organizations—pointing to sustainability as a driver of new products, business models, and value creation overall,” said Jennifer Steinmann, Deloitte Global Sustainability Business leader.

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Source: Deloitte 2024 CxO Sustainability Report