Some three quarters of global firms view sustainability as a ‘core future-proofing strategy’ to enable them to drive long-term competitiveness, innovation, and resilience, a new report by Capgemini Research Institute has found.
The report, A world in balance 2025: Unlocking resilience and long-term value through environmental action, noted that the majority of organisations remain committed to sustainability, despite global uncertainty.
According to the survey of more than 2,100 executives across 13 countries, some 82% said that they plan to increase their investment in environmental sustainability in the next 12 to 18 months, up eight percentage points since last year.
Compliance with regulations was cited as the lead factor driving sustainability initiatives, followed by unlocking business value, such as profitability, cost savings, and operational efficiency
However, Capgemini’s report reveals a disconnect between planning and tangible climate adaptation measures.
‘Under increasing pressure’
Some two thirds of executives said that they are ‘under increasing pressure’ to demonstrate credible, science-based progress, yet just over a fifth (21%) said that they have developed detailed transition plans with interim targets and capital allocation.
Internally, many firms find progress hindered by budget constraints, inadequate data and measurement systems and operational silos, while two thirds of executives also said that the geopolitical situation is ‘slowing down’ sustainability investments.
‘Reality check’
“Although sustainability regulations are putting less pressure on organisations, business leaders still see sustainability as a core driver of business value,” commented Cyril Garcia, head of global sustainability services and corporate responsibility, and group executive board member at Capgemini. “However, with global uncertainty and constrained budgets, many companies are facing a reality check.”
Other findings from the report include that over 70% of executives say that climate change has impacted their operations, in the form of supply chain disruptions, production delays, and raw material shortages, while more than two thirds anticipate difficulties in managing insurance or financial risks.
Despite these looming challenges, only 38% of organisations say that they have undertaken infrastructure upgrades, 31% have relocated production to less climate-vulnerable regions, and 26% have redesigned products.
“With climate risks increasingly high on the corporate agenda, business leaders need to adopt a pragmatic, operational approach and urgently implement concrete, financed transition and adaptation measures,” Garcia added. This will not only build true resilience, but also fuel innovation and competitiveness.”
Worryingly, scepticism is also on the rise among consumers, the study found, with some 62% of consumers believing that companies are engaging in greenwashing, up from a third in 2023 and over half in 2024.
In addition, more than three quarters of consumers believe corporations should do more to reduce emissions, while just one quarter consider sustainable products affordable. Read more here.
