There is a widening gap between businesses that are taking the most action when it comes to climate change, and those that are doing the bare minimum, a new study by EY has found.
According to the EY Sustainable Value Study, the percentage of so-called ‘Pacesetters’ that are planning to increase sustainability spend has risen from 56% last year, to 76% this year, while the percentage of ‘Observers’ planning to increase spend has dropped from 50% in 2022 to just 7% this year.
In terms of whether a business has a climate commitment in place, 95% of Pacesetters say that they do, compared to 67% of observers.
As to whether said businesses have set a median emissions target, however, there is less of a gap, with 50% of Pacesetters saying that such a target is in place at their firms, compared to 40% of Observers.
Financial value
Notably, when asked whether they had captured higher than expected financial value from their climate change initiatives, 79% of Pacesetters said that they had, compared to 45% of Observers.
In terms of ‘customer value’, meanwhile, which encompasses product quality, brand perception and purchasing behavior, 89% of Pacesetters said that it had improved as a result of climate change initiatives, compared to 56% of Observers.
Corporate sustainability leaders
In putting together its report, EY gathered responses from 520 corporate sustainability leaders in 10 industries and 23 countries spanning the Americas, Asia-Pacific, and EMEIA (Europe, Middle East, India, and Africa). The surveyed companies had an annual revenue exceeding $1 billion.
Of the respondents, 54% were in charge of their organisations climate change agenda, while the rest were responsible for or oversaw significant climate initiatives. The full report can be found here.
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