How is business leadership thinking about sustainability?
- In 2023, 67% of CxOs (business leaders) felt concerned about climate change and the environment most, if not all, of the time. (Deloitte)
- In addition, 70% of business leaders in 2024 said climate change would have a high or very high impact on their business’s strategy and operations over the next three years, up from 61% in 2023. (Deloitte)
- More than half of leaders acknowledged that their organization's increased investments in sustainability were encouraged by employee activism on the matter. (Deloitte)
- Over 80% of companies surveyed in 2024 have a Chief Sustainability Officer in place. (Forbes)
- Companies with a CSO in place are 27% more confident about the positive impact of their sustainability initiatives than companies without a CSO. (Forbes)
- 65% of CxOs admitted that the regulatory environment was a driver in their choosing to invest in climate change matters. (Deloitte)
- Organizations ranked climate change as the second most significant concern (42%) for businesses in 2024, following closely behind the economic outlook (44%). (Deloitte)
- 84% of CxOs agreed or strongly agreed that it was possible to achieve global economic growth while also reaching sustainability goals. (Deloitte)
Why is sustainability important in business?
- According to the EU’s C3S, 2024 is officially the hottest year on record, with average global temperatures now exceeding 1.5°C compared to pre-industrial temperatures. (Reuters) .
- In recent decades, as the global population has grown, economies have improved, and demand/production of goods and services has increased, energy demand has soared, along with our collective carbon footprint. The increased combustion of fossil fuels to meet this demand has seen annual global greenhouse gas emissions increase by 50% over the past 30 years. (Statista)
- China is responsible for about 31% of global fossil fuel CO₂ emissions in 2022, making it the largest carbon polluter in the world. (Statista)
- In 2023, approximately 430 million tonnes of plastic were produced, about 65% of which were short-lived products that soon became waste. (World Environment Day)
- However, it is estimated that current commitments made by governments and industries will only reduce the annual volume of plastic flowing into the ocean by 8% by 2040. (WED)
- By the end of 2023, the social and economic costs of plastic pollution were US$600 billion. (WEB)
- A global shift to a circular economy, which refers to using resources efficiently, reducing waste, and recycling, by 2040 could create savings of more than US$4.5 trillion. (WEB)
- Each year, between 19 and 23 million tonnes of plastic waste seep into aquatic ecosystems, contaminating lakes, rivers, and oceans. That’s the equivalent of about 2,000 garbage trucks per day. (United Nations Environment Program)
- The world is losing around 10 million hectares of forest every year due to deforestation. (UN)
- Agriculture is the main driver of deforestation in all regions except Europe. Urbanization, climate changes, and over-utilization of resources are other leading causes. (European Parliament)
- In 2024, 55% of CEOs expect to see significant returns from sustainability investments by 2030. (KPMG)
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Customers care about sustainability issues
- In 2023, the global green technology and sustainability market was valued at $17 billion USD. By 2032, it’s expected to reach over $105 billion dollars, increasing at a compound annual growth rate (CAGR) of 22.4% from 2024 to 2032. (Fortune Business Insights)
- In 2023, there was an increase in eco-active (22%) and eco-considerer (40%) consumers compared to the previous year. Eco-actives are highly concerned about the environment and plastic waste, and eco-considerers are worried about the environment and plastic waste. (Kantar)
- In 2024, consumers were taking action, primarily by recycling household waste (73%), reducing food waste (68%), limiting the use of single use plastics (61%) and reducing the number of new products they buy (58%). (Deloitte)
- 64% of global consumers expressed concern about climate change in 2023. Additionally, 41% cited price as the primary obstacle to sustainable purchases, while 28% identified unclear labeling as their main barrier. (Euromonitor)
- American consumers are willing to pay, on average, 11% more for sustainable products. However, companies charge, on average, 28% more for such products. (Bain & Company)
- 79% of consumers in rapidly expanding markets such as China, India, and Indonesia showed concern for environmental sustainability, whereas only 55% in developed markets, like the US and Europe, shared similar sentiments. (Bain & Company)
- Gen Z (72%) and boomer (68%) consumers globally were very or extremely concerned about the environment in 2023. (Bain & Company)
- 50% of consumers said sustainability is one of their top four key purchase criteria when making purchasing decisions. (Bain & Company)
- However, global consumers face many barriers when it comes to shopping sustainably. 61% said sustainable purchases were too expensive, while others said they didn’t know how to find sustainable choices (48%) or that sustainable products were hard to find (42%). (Kantar)
- 36% of B2B shoppers would switch business providers or partners if sustainability needs were not met. (Bain & Company)
- 68% of consumers said they strive to eliminate waste “in all areas of their life.” (Kantar)
How does sustainability benefit a business?
Finances and the bottom-line
- In 2024, 71% of C-suite leaders believe ESG investment is a competitive advantage for their company, up from 60% in 2023. (Reuters)
- In addition, 82% say they believe the significance of ESG in corporate performance will continue to grow. (Reuters)
- Almost 50,000 companies were subject to mandatory sustainability reporting in 2024 due to CRSD, including leading companies in Japan, Malaysia, Singapore, South Africa, South Korea, Thailand and the United States. (KPMG)
- Financially successful companies that incorporated environmental, social, and corporate governance (ESG) priorities into their business strategies were twice as likely as their peers to generate a 10% increase in revenue. (McKinsey)
- Industries worldwide could save $437 billion per year by 2030 through improved energy efficiency. (Reuters)
- By 2025, 11% to 15% of U.S. investment managers will put 40% of their portfolios in ESG investments. (Investors)
On our journey to Net Zero, precise, granular emissions data is really helpful to Aesop —because before we can act, we need to know what to focus on. Working with Travelperk has enabled us to understand our travel emission hotspots much better and map out the changes we can make that will have the biggest impact.
Rebecca LawsonAesop Sustainability Manager, Climate
Employee engagement and retention
- 69% of employed adults expressed a desire for their companies to invest in sustainability efforts such as carbon reduction, renewable energy usage, and waste reduction. This sentiment was particularly strong among respondents aged 18 to 34. (Deloitte)
- 27% of respondents indicated they would factor a potential employer's stance on sustainability into their decision to accept a job offer. (Deloitte)
- 67% of employees would be more willing to apply for or accept a job with an environmentally sustainable company. (Great Place to Work)
- 64% of Gen Z and millennials believed in their ability to drive organizational change and perceived that their feedback was being acknowledged and incorporated by their organizations in 2023. (Deloitte)
- Almost a quarter (24%) of employees considered switching jobs to a more sustainable company. (Deloitte)
- After salary, environmental and societal impact and policies were the most important considerations for employees when choosing or staying with an employer. (PwC)
- 80% of C-suite leaders reported that their employees’ activism had positively impacted their sustainability plans. (Deloitte)
- However, only 38% of employees surveyed agreed that their employer “was doing enough to address climate change and sustainability.” (Deloitte)
- 93% of those working in environmentally friendly workplaces felt happier in their jobs—compared to 55% who were happy in environmentally unfriendly offices. (Reworked)
- 46% of Gen Z and 42% of millennials had already changed or planned to change jobs or industries due to climate concerns in 2023. (Deloitte)
- 54% of Gen Z and 48% of millennials were "pushing" their employers to start sustainability practices. (Deloitte)
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