Climate action now a top priority for global executives, Deloitte report finds

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Climate action now a top priority for global executives, Deloitte report finds

Published: 12 Sep. 2024, 18:26

Consulting firm Deloitte's 2024 CxO Sustainability Report [DELOITTE]

Consulting firm Deloitte has released a sustainability report highlighting a significant shift in business climate action, with climate change emerging as a top priority for global executives.

Deloitte's 2024 CxO Sustainability Report released on Thursday reveals that more than 85 percent of C-suite level business leaders, or CxOs, have increased investments in sustainability efforts in the past year, and half have implemented technology solutions to address climate goals.

While optimism is growing, the report also highlights the need for more concrete progress. Deloitte Global CEO Joe Ucuzoglu emphasized the importance of transforming core business models to tackle climate change and drive innovation.

The report also stressed that there is a growing focus on equity, ensuring that the benefits of transitioning to a low-carbon economy are widely shared. More than half of organizations have implemented "needle-moving" actions to drive impact, such as tying senior leaders' compensation to environmental sustainability performance.

However, the report said that progress is uneven. While 17 percent of organizations are leading the charge, over a quarter are taking minimal or no action. More than half fall into a "moderate middle" category, implementing only two to three significant actions.

Despite this, the report indicates there are reasons for optimism regarding corporate climate action. The moderate middle group anticipates a high impact of climate change on their strategy and is likely to take action within the next three years. Their current commitments, combined with their expectations, suggest they will soon lay the groundwork to scale up for greater impact.

“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 Deloitte Global Sustainability Business Leader Jennifer Steinmann.

“The companies in the moderate middle group in our analysis are primed to take advantage of the broader market momentum by building on their existing experience to take additional deeper, transformational actions.”

BY YOON SEUNG-JIN [yoon.seungjin@joongang.co.kr]