Capgemini Report Highlights Corporate Sustainability Progress Amid Geopolitical Tensions and Consumer Doubts

Capgemini Report Highlights Corporate Sustainability Progress Amid Geopolitical Tensions and Consumer Doubts

(IN BRIEF) A new report by the Capgemini Research Institute, titled “A World in Balance 2024: Accelerating Sustainability Amidst Geopolitical Challenges,” reveals that despite global geopolitical tensions, organizations are continuing to advance their sustainability goals. Key areas of progress include circular economy practices, sustainable product design, and water stewardship. However, there is a decline in sustainability investments, with the average annual spend dropping from 0.92% to 0.82% of total revenue. The report also highlights growing consumer skepticism, with over half of consumers accusing companies of greenwashing. Regulatory pressure, particularly from the EU’s Corporate Sustainability Reporting Directive (CSRD), is playing a key role in driving corporate sustainability efforts, although many companies are still unprepared to report Scope 3 emissions. Geopolitical factors, including US-China relations and the European energy crisis, are increasingly influencing corporate sustainability investments.

(PRESS RELEASE) PARIS, 23-Sep-2024 — /EuropaWire/ — Despite the growing complexities of geopolitical challenges, organizations are intensifying efforts to achieve sustainability targets, with regulations and technology playing a crucial role. According to the latest report from the Capgemini Research Institute, titled “A World in Balance 2024: Accelerating Sustainability Amidst Geopolitical Challenges,” many companies are making headway in areas such as circular economy practices, sustainable product design, water stewardship, and biodiversity. However, the report also reveals that businesses are lagging in addressing Scope 3 emissions and face increasing consumer skepticism about their green initiatives.

Key findings from the report highlight that 84% of executives believe their organizations are on track to meet carbon reduction goals, with only a small fraction admitting they are behind. There has been significant progress in recycling, with nearly three-quarters of companies now making it a core part of their strategy—up from 53% in 2022. Similarly, over two-thirds are redesigning products to eliminate fossil fuel feedstock, a considerable rise compared to previous years. Water management is also on the rise, with 75% of companies now adopting water-stewardship programs.

However, while many executives planned to boost sustainability investments in 2024, these plans have not fully materialized. The average annual spend on sustainability initiatives has fallen to 0.82% of total revenue, down from 0.92% in 2023.

Cyril Garcia, Capgemini’s Head of Global Sustainability Services, remarked on the progress despite ongoing challenges: “Business leaders must continue driving the transition towards a sustainable economy, with a focus on water stewardship, biodiversity, and circular practices. The key to maintaining consumer trust is delivering tangible, measurable outcomes.”

The report also underscores rising consumer skepticism, with more than half of consumers accusing corporations of greenwashing—up from 33% in 2023. Additionally, geopolitical concerns are increasingly influencing corporate sustainability decisions. Two-thirds of executives cited geopolitical tensions, such as US-China relations and the energy crisis in Europe, as factors impacting sustainability investments. In particular, the uncertain US political landscape worries 69% of executives globally.

Regulatory pressure continues to drive sustainability efforts, with 75% of executives believing that sustainability regulations are essential for meeting climate goals. The EU’s Corporate Sustainability Reporting Directive (CSRD) is improving sustainability measurement and reporting, but many companies still struggle with Scope 3 emission disclosures, with only a third prepared to report these emissions by 2025.

For a deeper dive into these insights, the full report is available at: Capgemini Sustainability Trends 2024.

Methodology
The Capgemini Research Institute surveyed 2,152 executives employed at 727 organizations, each with more than $1 billion in annual revenue, across 13 countries in North America, Europe, and Asia-Pacific and in 12 industries and sectors, in June and July 2024. Executives surveyed were director level and above and 50% were from corporate functions, such as strategy, sustainability, sales, and marketing; 50% were from value chain functions, such as product design, R&D, procurement, and logistics. The Institute also surveyed
6,500 consumers over the age of 18 across the 13 countries and conducted interviews with 12 senior sustainability executives at leading organizations globally.

About Capgemini
Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths
from strategy and design to engineering, all fuelled by its market leading capabilities in AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2023 global revenues of €22.5 billion.

Get the Future You Want | www.capgemini.com

About the Capgemini Research Institute
The Capgemini Research Institute is Capgemini’s in-house think-tank on all things digital. The Institute publishes research on the impact of digital technologies on large traditional businesses. The team draws on the worldwide network of Capgemini experts and works closely with academic and technology partners. The Institute has dedicated research centers in India, Singapore, the United Kingdom and the United States. It was recently ranked #1 in the world for the quality of its research by independent analysts.

Visit us at https://www.capgemini.com/researchinstitute/

Media Contact:

Victoire Grux
Tel.: +33 6 04 52 16 55
Email: victoire.grux@capgemini.com

SOURCE: Capgemini