Deloitte’s 2022 CxO Sustainability Report: The Disconnect Between Ambition and Impact, reveals that global C-level business leaders (or CxOs) are increasingly concerned about climate change and see the world at a tipping point to act. Eighty-nine percent of CxOs agree there’s a climate crisis and 63 percent say their organizations are very concerned. Yet, they are struggling to fully embed sustainability into their core business strategies, operations, and cultures.
Understanding the rising importance of sustainability and the immense threat of climate change, Deloitte built upon past research by engaging more than 2,000 CxOs across 21 countries to examine business leaders’ and companies’ concerns and actions related to climate change and sustainability. The report also explores the disconnect between company ambition and impact, as well as steps CxOs can take to start to bridge the gap.
The impacts of climate change are weighing heavily on executives’ minds. The majority (79 percent) of CxOs believe the world is at a tipping point when it comes to responding to climate change. That’s up 20 percentage points from a Deloitte survey conducted eight months prior, underscoring the growing importance of acting swiftly. What’s more, 88 percent of CxOs are optimistic that with immediate action, the world can limit the worst impacts to the planet. That is similarly higher than 63 percent eight months prior. The surge in concern, but also optimism, demonstrates that leaders are increasingly cognizant of the need to act now.
The data shows CxOs are feeling tangible pressure on a number of levels:
- Almost all respondents (97 percent) indicated their companies have already been negatively impacted by climate change, and about half said their operations have been impacted (e.g., disruption to business models and supply networks worldwide).
- Eighty-one percent of CxOs have been personally impacted by a climate event (e.g., extreme heat, worsening storms, wildfires) over the last 12 months.
- Additionally, stakeholder groups—including regulators, shareholders, consumers, and employees—are all adding to the pressure to act.
“Climate change is no longer in the distant or even near future. It’s here now and the choices we make today will determine the quality of life for generations to come,” said Jennifer Steinmann, Deloitte Global Climate and Sustainability Marketplace Leader. “A better future depends on a profound and lasting change in attitude and behavior from governments, businesses, and individuals. The business community can help model new forms of cooperation that identify the best ideas, regardless of source—and create new and lasting solutions that will have the greatest impact for them, their stakeholders, and their communities.”
