Mumbai, There has been a notable rise in investment in sustainability over the last one year with 91 per cent CXOs interviewed reporting an increase, indicating that climate action drives value creation and is central to the company’s overall business strategy, according to a report released on Wednesday. Indian CXOs have significantly ramped up sustainability investments, with 91 per cent reporting an increase over the last year despite challenges such as a lack of sustainable solutions, senior leadership buy-in and difficulty measuring environmental impact, according to the Deloitte CXO Sustainability Report.
This increase is driven by growing concerns over climate change, with 87 per cent of Indian CXOs feeling concerned about it most of the time, it added.
Deloitte’s 2024 CXO Sustainability Report (India) surveyed over 157 executives nationwide on their views and strategies related to sustainability and climate change.
The report further revealed that climate change is the top priority for 40 per cent of Indian CXOs this year, outpacing AI-driven innovation (39 per cent) and economic outlook (37 per cent).
However, 62 per cent of Indian executives also emphasise that this focus must be accompanied by a commitment to climate equity and ensuring a just transition within their companies’ sustainability efforts, it added.
“Indian CXOs have a unique opportunity to lead on climate action by aligning their sustainability investments with strategic goals that drive business growth. As they increasingly prioritise climate equity and work closely with local communities, they can set new standards for a just transition, ensuring a resilient workforce ready for green jobs,” Deloitte South Asia Partner and Sustainability and Climate Leader Viral Thakker said.
Meanwhile, the report revealed that the increase in climate investments among Indian CXOs can be attributed to the potential for business impact.
About 78 per cent of CXOs in India expect that climate change will impact their companies’ strategies and operations to a high or very high extent in the next three years.
This is a noticeable increase from 2023, notably higher than the global average (70 per cent), said the report.
Among the most important climate issues already affecting companies are changing consumer patterns of preferences (61 per cent), increased insurance costs or lack of insurance availability (57 per cent), the operational impact of climate-related disasters (56 per cent), employee physical health challenges due to environmental changes (55 per cent) and employee mental health considerations due to climate change concerns (54 per cent) emerged as top issues, it noted.
Another reason for increased investment is the significant pressure from stakeholders to enhance climate initiatives, it added.
