82% of Organizations Plan to Increase Investment in Environmental Sustainability
Mumbai: A recent report by the Capgemini Research Institute finds that 82% of organizations plan to increase investment in environmental sustainability in the next 12-18 months as a core future-proofing strategy. Despite global uncertainty, three-quarters of organizations say sustainability is crucial for driving long-term competitiveness, innovation, and resilience.
Key Findings
- Compliance with regulations remains the lead factor driving sustainability initiatives, followed by business value, such as profitability, cost savings, and operational efficiency.
- Two-thirds of executives say they are under increasing pressure to demonstrate credible, science-based progress, yet only 21% of organizations have developed detailed transition plans with interim targets and capital allocation.
Challenges and Obstacles
- Internally, progress is hindered by budget constraints, inadequate data and measurement systems, and operational silos.
- Externally, nearly two-thirds of executives agree that geopolitics is currently slowing down sustainability investments and projects.
Climate Strategies and Execution
- More than seven in ten executives report disruptions to supply chains, production, and raw material shortages due to climate impacts.
- While the majority prioritize climate adaptation, more than half consider their organization underprepared for the impacts of climate change.
AI’s Environmental Footprint
- AI is playing a significant role in advancing sustainability, but its own environmental impact is under closer scrutiny, with 57% of executives acknowledging that generative AI’s environmental impact is being discussed in boardrooms.
