The heat is on: 5 steps to accelerate sustainable transformation

For decades, leaders have debated what it will take to keep Earth at a livable temperature—a bar scientists have set at 2 degrees Celsius above pre-industrial levels. Talk is plentiful, but action has been slow. And temperatures just keep rising. In October 2022, the United Nations projected that, given current commitments, the planet is on track to warm 2.5 degrees by the end of the century.

To reverse this trend, business leaders need to think big and broad. While many have committed to achieving net-zero greenhouse gas emissions by 2050, most plans lack specificity. There are few partnerships or coalitions that can collectively have a greater impact than any one organization on its own.

As calls for environmental action becomes more urgent, stakeholders are holding business leaders accountable to their sustainability targets—or lack thereof.

And even if net-zero emission targets are achieved, they may be too little, too late to address the climate crisis. As the call for environmental action becomes more urgent, stakeholders are holding business leaders accountable to their sustainability targets—or lack thereof.

For example, recent consumer research conducted by the IBM Institute for Business Value (IBV) revealed that consumers are changing their habits to reduce their environmental impact. Almost 2 in 3 (64%) say products branded as environmentally sustainable or socially responsible made up at least half of their last purchase. This figure is even higher in India (75%) and China (76%).

What’s more, roughly half (49%) of consumers say they paid an average premium of 59% for products branded as sustainable or socially responsible, signaling that consumers across income groups are willing to support sustainability efforts throughout the supply chain with their wallets.

5x more CEOs report getting sustainability pressure from board members than customers.

But the pressure being applied by individuals is dwarfed by the demands being made by boards of directors, investors, and ecosystem partners. The IBV’s 2022 CEO study revealed that five times more CEOs report getting sustainability pressure from board members than customers. As a result, almost half of CEOs say increasing sustainability is one of the highest priorities for their organization in the next 2 to 3 years—up from roughly a third in 2021. This reflects an increase of 37% year-over-year.

This increased commitment is promising, but good intentions and well-meaning initiatives can only take a company so far. Another IBV survey of C-suite execs found that while 86% said their organization now has a sustainability strategy in place, only 35% have acted on that strategy. Only 1 in 3 have integrated sustainability objectives and metrics into business processes.

86% of execs say their organization has a sustainability strategy in place—but only 35% have acted on that strategy.

What will it take to make sustainable business a reality—before it’s too late? Download the report for 5 steps organizations can take today to reframe their sustainability strategies and make bigger strides toward solving the complex problem of climate change.