Extreme weather events have been ravaging the world-- floods in Pakistan, recording break heat waves in Europe. However, climate change may have further reaching impacts than originally considered says a new report by Deloitte.
The Deloitte 2023 CxO Sustainability Report surveys business executives from origanisations spanning 24 countries and the impact that climate change has had on these corporations and the people running them.
Why it matters: Climate change has ranked as one of the most pressing issues for these organisations. This was only beat by economic outlook, making climate change a major factor to be considered in decision making.
61 per cent of CxOs have revealed in the survey that climate change has a high impact on the strategies and operations of these organisations.
This has led to 75 per cent of business leaders have increased investments in sustainability.
"ESG and environmental sustainability are important elements of creating a strong, resilient business that can be adaptable to change," said Sunya Norman, Vice President of ESG Strategy, Salesforce
The Impact: According to the report, 62 per cent of CxOs have admitted to feeling increasingly more concerned about climate change-- all or most of the time.
Climate change has had a significant impact on the mental health of business leaders across the globe.
While almost all of the business leaders surveyed admitted that their organisations have been negatively impacted due to climate change, 82 per cent also spoke about how they have been personally affected.
What's happening: Organisations have been facing pressure to act on the climate issue by stakeholder groups-- customers, employees, even company boards and management.
Many CxOs have reported that employee activism on climate matters has led to an increase in sustainability actions.
46 per cent of executives stated that just transition is an important consideration for their organisations.
“It is a dynamic environment these days, and one of the biggest challenges we have faced recently is the European energy crisis. We are confident that it also presents an opportunity for us to expedite our transition to renewable energy," said Natalie Knight, Chief Financial Officer, Ahold Delhaize.
Taking it seriously: Some countries have been more likely to increase investments in sustainability efforts:
UAE: 34 per cent
Brazil: 31 per cent
Italy: 29 per cent
Meanwhile: Only 3 per cent of countries have stated that they have decreased efforts in sustainability. The most common reason for this was concern over economic downturn and the effects of the Russia-Ukraine war.
(Our on-ground climate journalism needs your insights, ideas, and financial support - as we cover the biggest crisis of our times. Become a Q-Insider so we can bring more such stories to light.)