In a turn towards sustainable business practices, over half of business leaders are poised to escalate their investments in sustainability this year.
Accoding to ESG Today, this upward trend marks a considerable shift from the previous year, signaling a growing alignment of business strategy with environmental stewardship.
The findings are part of a comprehensive study, “Embracing a brighter future: Investment Priorities for 2024,” conducted by the Capgemini Research Institute. This study delves into the investment trends of firms from various sectors, each boasting an annual revenue exceeding $1bn.
The report illuminates the rising optimism among business leaders regarding their growth prospects, with a notable 56% expressing a positive outlook for their organizations, an upswing from 42% the previous year. This buoyant sentiment is underpinning the strategic shift towards sustainability, with 52% of organizations indicating plans to augment their sustainability investments, a significant leap from 33% in the preceding year.
Capgemini’s research further reveals a growing cognizance among executives about the tangible risks and opportunities linked to sustainability. A substantial 63% concur on the lucid business case for sustainability, a stark increase from a mere 21% in 2022. Moreover, nearly half of the respondents anticipate climate change to be the chief disruptor of operations in the forthcoming decade, and 61% recognize that a lack of sustainable practices could threaten the long-term survival of their organizations.
Government incentives are notably fueling this investment surge. The Inflation Reduction Act in the U.S. and the Green Deal Industrial Plan in the EU are pivotal in driving a majority of business leaders to intensify investments in clean technology. Furthermore, the survey uncovers a strategic response to stringent ESG regulations, with 52% of organizations reshaping their supply chains through nearshoring.
Capgemini CEO Aiman Ezzat encapsulates this sentiment, stating, “Business leaders are beginning the year with an increased sense of confidence compared to 12 months ago, with technology and AI set to drive the next phase of the transition towards a more digital and sustainable global economy. It is good news that business leaders are increasing investments in a wide array of critical business areas from customer experience and innovation to talent and supply chains, and perhaps even more importantly sustainability.”
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