When asked about the top obstacles to deploying environmental sustainability efforts, global C-suite level business leaders (CxOs) surveyed by Deloitte highlighted the complex challenges in achieving environmental goals.

One of the primary obstacles is the lack of sustainable solutions or insufficient supply of more sustainable inputs, which 21% of companies identify as a major barrier. This shortage can hamper the ability of organizations to fully implement sustainable practices across their operations.

Another equally significant obstacle is the lack of political support and action for necessary change, also cited by 21% of companies. Without strong political backing, it can be challenging for businesses to make the substantial changes required to meet sustainability targets.

1. Lack of sustainable solutions or insufficient supply of more sustainable inputs  (21%)
2. Lack of political support and action for necessary change (21%)
3. Concern taking a stance could alienate a subset of customers or employees (19%)
4. Focus on near-term business challenges/demands from investors/shareholders (18%)
5. Lack of customer/client demand for sustainable goods and services (18%)

Nevertheless, leaders are increasingly recognizing the financial benefits of the shift to a low-emissions economy. Compared to last year, CxOs report experiencing a wider range of benefits across the board—and importantly are starting to see the impact on the broader climate challenge.​

In 2023, there was a considerable delta between the top and bottom five benefits, with addressing climate change ranking fifth, 12 points behind the top benefit of brand recognition and reputation. This year, there is a much more even distribution across the ranking of benefits, and addressing climate change placed first at 39%. In previous years, the financial benefits of climate action ranked the lowest.  This year’s results indicate organizations are making progress toward linking tangible financial benefits with sustainability initiatives. 

 Top five benefits selected

1. Addressing climate change
2. Customer satisfaction and loyalty
3. Employee morale and well-being
4. Supply chain efficiency and/or resilience
5. Operating margins

“Each organization’s sustainability journey is unique…and sometimes less than straightforward. However, we see that the dedication of business leaders to this effort is stronger than ever. The transition from awareness to action underscores a deeper understanding of the lasting benefits of investment in sustainability, not only for the environment but also for long-term business resilience and growth,” concluded  Jennifer Steinmann, Deloitte Global Sustainability Business leader.

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Source: Deloitte 2024 CxO Sustainability Report