Sustainability and associated ESG company initiatives such as climate action are at the top of consumers’ list of expectations, and brands and businesses have largely agreed that their companies must commit to and demonstrate their support as well. Although virtually all businesses have made this commitment, consumers are skeptical about many of those claims because they aren’t seeing companies actually doing anything. New research from climate action firm Carbon Direct goes beyond the lip service to see how companies are prioritizing climate action, and the steps they are taking to reduce their impact.
The firm’s 2024 State of Corporate Climate Commitment report, based on a survey by Wakefield Research of 700 finance, sustainability, and compliance professionals at organizations of up to 5,000 employees in the US, UK, France, and Germany, found that half (50 percent) of professionals surveyed said their companies had already taken action around climate change, and another 46 percent said their company planned to. This leaves only 4 percent of companies without a plan for climate action.
Additional key findings from the report include:
Companies with a public goal are much more likely to have taken action
Eighty-three percent of companies that have taken steps to decarbonize their operations have set a public sustainability goal.
Carbon emissions measurement correlates to climate action
Sixty-one percent of companies that have calculated their footprint have both set a public goal and begun working towards it.
Climate and sustainability efforts require cross-functional action
Three of four (76 percent) professionals said that responsibility for climate and sustainability initiatives is spread across more than one team.
Energy consumption and efficiency are the top areas of focus for climate action
Nearly two out of three (63 percent) professionals said their organizations are trying to limit their energy consumption or become more energy efficient.
There are many motivations for corporate action
Four of five (81 percent) companies identified three or more factors, including competitive necessity, regulation, and voluntary reporting, as motivators for climate action.
“The results of this survey demonstrate growing awareness among corporate professionals of the central role the private sector must play in achieving climate targets,” said Jonathan Goldberg, CEO of Carbon Direct, in a news release. “As we strive to move even more companies to set, act, and deliver on climate commitments, we must continue removing cost and knowledge barriers and incentivizing organizations to make climate action a priority.”
