Executive Summary: In the third edition of the A world in balance sustainability series, the report examines the progress organizations have made in environmental and social sustainability over the past three years and identifies the drivers and challenges they face. Since 2022, organizations have shown significant progress, with a 22 percentage point increase in the adoption of sustainable practices and initiatives. Key areas of improvement include:
Regulations have played a crucial role in driving sustainability efforts, with three-quarters of executives believing that regulation is necessary to achieve global climate goals. However, many organizations are unprepared for upcoming regulations like the CSRD. Specifically, only 38% of organizations are prepared to report Scope 3 downstream emissions in 2025, and 56% are prepared for Scope 3 upstream emissions.
Despite these advancements, geopolitical dynamics pose a challenge. Two-thirds of executives view climate tech as crucial for reducing greenhouse gas emissions, and 69% agree that data and digital technologies will accelerate climate tech adoption. However, they must navigate high costs, skills shortages, and regulatory uncertainty.
To accelerate sustainability transformation and drive lasting impact, organizations should:
This report provides valuable insights into important sustainability trends for the global corporate sector, offering recommendations to help Chief Sustainability Officers (CSOs) and the broader C-suite accelerate their sustainability journeys. The report is based on original findings from a comprehensive industry survey of 2,152 senior executives from 727 leading organizations across 13 countries with annual revenue above $1 billion.