Frequent natural disasters as a consequence of climate change have got as many as 62% of organisations globally taking cognisance of the impact of such events on their environmental initiatives, as per the fifth edition of Environmental Sustainability Index (ESI) compiled during Q3 of 2023 by Honeywell and The Futurum Group.
The index also finds that an increasing number of organisations globally are boosting their annual sustainability investments by 50%. Almost 73% of surveyed organisations are optimistic about achieving their near-term sustainability goals, which is an 11% increase from 2022. As many as 84% are planning to invest more in emissions reduction and pollution prevention.
Another 45% admit the extreme heat will have or has already had a material effect on their near-term sustainability plans.
“The extreme weather events this year have increased the sense of urgency for immediate action at organisations,” said Gavin Towler, chief scientist for sustainability and chief sustainability officer at Honeywell. He added, “As a result, we should expect to see more organisations looking to accelerate their sustainability efforts and, in particular, adopting a technology-driven approach to their energy transition plans.”
The findings of the report highlight the progress and plans made in sustainability efforts across regions and industry sectors. Nearly nine in 10 (88%) organisations are planning to increase their budgets for energy evolution and efficiency initiatives. The energy sector shows the highest level of confidence among the industries covered in the study, with a score of 65%. Nearly one in five organisations are now taking a technology-driven approach to their sustainability initiatives – the highest percentage since the launch of the Index. Almost 92% of respondents have an ESG (Environmental, Social and Governance) reporting process in place, while 30% say the responsibility resides in the C-suite.
Daniel Newman, CEO of The Futurum Group, said, “The data is showing that organisations in the public and private sectors are actively forming frameworks to partake in either policy-driven or investment and technological-oriented action in effort to address the global objectives in environmental sustainability.”
The quarterly ESI measures corporate sustainability commitment globally in aggregate and gauges activity in four specific sustainability areas: energy evolution and efficiency; emissions reduction; pollution prevention; and circularity and recycling. The index further breaks down its findings by four regions (Asia Pacific, EMEA, Latin America and North America) and eight industry sectors (banking, consumer goods, energy, government/public sector, healthcare, technology, manufacturing/construction and transportation/logistics.)
The ESI is based on a global double-blind survey of 751 business, technology, and sustainability professionals directly involved in the planning, strategic development, implementation, or oversight of environmental sustainability goals and initiatives. The index is based on inputs from panelists holding leadership roles at their respective organisations and the survey organisations had a minimum of 1,000 active employees.