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Capgemini poll of executives at firms representing $10.7tr in annual revenues shows most top businesses plan to stick with net zero timelines
Corporate investment in climate action and adaptation looks set to increase with most companies holding firm on their net zero goals, despite on-going geopolitical risks, economic headwinds, and a political backlash in parts of the world against ESG policies.
That is according to fresh research published today by Capgemini, which quizzed almost 2,150 executives from more than 700 organisations, each boasting more than $1bn in annual revenue. Respondents spanned 13 countries across North America, Europe and Asia-Pacific, 12 industries, and companies that collectively boast annual revenues of around $10.7tr.
The consultancy giant also surveyed a further 6,570 consumers across the same countries and conducted interviews with 15 senior executives from leading organisations worldwide.
It found 82 per cent of the organisations surveyed plan to increase their environmental sustainability investments - up eight percentage points from the same survey last year - and 92 per cent plan to stick with their existing net zero timelines, with the majority viewing such efforts as a core strategic driver of business value.
More than two-thirds of executives cited profitability, efficiency, and cost savings as key reasons for maintaining or boosting investing in environmental sustainability, while 49 per cent said their organisations had already secured a positive return on such investments. Compliance with regulations was also cited as a leading reason for upping investment in sustainability measures.
In addition, three-quarters of executives said they viewed sustainability as core to future-proofing their business and achieving long-term competitiveness, innovation, and resilience.
The survey also shows how companies are increasingly having to grapple with worsening climate impacts and volatile weather.
More than seven-in-10 executives reported experiencing climate change-driven disruption to their organisation's supply chains and production, while two-thirds said they foresaw increasing difficulties in managing associated insurance and financial risks going forward.
Yet there appears to be a gap between executives' efforts to prepare for worsening climate impacts and their companies' actual levels of resilience, Capgemini said.
While 56 per cent of respondents said their firm prioritised climate adaptation efforts, more than half also said their firm was underprepared for climate impacts. Moreover, just 38 per cent of those quizzed said their firm was upgrading infrastructure, 31 per cent said they were shifting production to less climate vulnerable regions, and 26 per cent said their firm was seeking to redesign products with more resilience to an increasingly climate-impacted world.
Meanwhile, pressure from consumers for corporates to deliver credible climate action is growing. Capgemini's survey of consumers found 62 per cent believe companies are engaged in 'greenwashing' - up from 33 per cent in 2023 and 52 per cent in 2024 - while 77 per cent said they believed corporations should do more to reduce their greenhouse gas emissions.
"This widening credibility gap highlights the need for transparent, evidence-backed sustainability communication," said Capgemini.
The survey also found that 65 per cent of executives believe geopolitical tensions are slowing down progress on environmental and climate action, although such concerns remain at same level as in last year's survey.
It comes as emboldened and largely climate-sceptic hard-right and even far-right politicians have secured growing media and political influence in the past year, with President Trump torching US support for climate science and clean technology, the EU getting cold feet on various aspects of its green policy agenda, and both Reform UK and the Conservatives intent on blaming the UK's economic challenges on the nation's legally-binding net zero targets.
At the same time, the survey highlights several common internal barriers to sustainability progress at leading corporates, such as budgetary and financial constraints, data gaps, and operational silos. Executives also warned that consumer adoption of clean technologies and green behaviours is being hampered by affordability concerns and access to information, Capgemini said.
Artificial intelligence (AI) also emerged as a major trend with 57 per cent executives saying the environmental and climate impacts of AI were increasingly being discussed in boardrooms. But less than a third of executives said they had taken steps to try and mitigate these impacts.
Overall, 57 per cent of executives surveyed said they believed the benefits of AI would outweigh environmental costs, compared to 67 per cent who said the same in last year's survey, suggesting confidence in the environmental sustainability of AI has fallen.
Cyril Garcia, head of global sustainability services and corporate responsibility at Capgemini, and group executive board member, said the findings underscored how corporates are currently "navigating a complex landscape defined by both uncertainty and opportunity".
"Geopolitical pressures, climate risks, and shifting regulatory landscapes undoubtedly add complexity, but they also strengthen the case for rethinking growth and resilience and for future-proofing competitiveness," he said.
The survey findings provide further evidence that despite a perceived 'ESG backlash' and some firms and sectors pushing back their net zero targets, most companies remain committed to climate action and are putting more money behind their decarbonisation and sustainability efforts.
Just this week, separate research by Boston Consulting Group of more than 2,000 executives found a large majority plan to increase the climate and environmental investments.
Garcia said that while some weakening of sustainability regulations was easing pressure on firms to embrace sustainability best practices, the latest survey findings suggest business leaders still see environmental action as a core driver of business value.
"However, with global uncertainty and constrained budgets, many companies are facing a reality check," he added. "With climate risks increasingly high on the corporate agenda, business leaders need to adopt a pragmatic, operational approach and urgently implement concrete, financed transition and adaptation measures. This will not only build true resilience, but also fuel innovation and competitiveness."
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