Sustainability Fires Up Early In 2022
03rd February 2022
Deloitte has kicked off coverage of sustainability trends in 2022 with its CxO Sustainability Report. Australian executives were among the more than 2K C-level executives surveyed by the global consulting firm.
Among the key findings is a large jump in the number of leaders who agree that the world is at a tipping point when it comes to proactively addressing climate change, with 79% nodding to this question, up from 59% just eight months ago. A massive 97% said their companies have felt the impact of climate change in one or more ways.
C-levels are coming under increasing pressure to act on climate change issues, especially given the complex problems that have hit global supply chains in recent months, and the increasing public concern about sustainability, which spills over into companies’ workforces and prods regulators to come up with new rules and regulations.
With the tide rising in favour of sustainability, the survey found that 67% of leaders are aiming for net-zero targets for their firms within 8 years. Sustainability officers are now commonly appointed in more than half the companies surveyed.
The report highlights the risks and opportunities for Australia, which “stands to lose $3.4 trillion by 2070 if we don’t act fast, but could gain $680 billion with rapid, focused action.” There is a clear gap between intention and action when it comes to Australian executives’ sustainability plans, the consultancy found. Australia’s leaders, it appears, have yet to work out how exactly to deploy sustainable practices to support long-term revenue, margin, and asset values. More than 80% of Australian C-levels admitted that, above all, it really was government and regulators that propelled them to action over climate change.
Learn how MyTreasur-e Treasury Management System is rigorously designed for security, scale, flexibility, ease of reporting and compliance Meanwhile, at the global level, sustainability continues to march ahead purposefully on many fronts. The World Economic Forum has again highlighted that Foreign Direct Investment (FDI) can play a key role in meeting the goals of the 2030 Agenda for Sustainable Development. As part of this major initiative, more than 110 economies are working out a multilateral framework on investment facilitation for development at the World Trade Organisation (WTO). While this target was announced at the World Economic Forum Annual Meeting in Davos in 2020, the talks are moving towards an international agreement this year.
Major individual companies are also launching innovative new ways to advance sustainability. Aviva Investors, the asset management arm of insurance giant Aviva, this week said it will call on boards for more action on biodiversity as well as human rights, which form part of the “whole picture of sustainability.” CEO Mark Versey said his firm would from this year take into account human rights, biodiversity, climate change, and executive pay when it makes investment decisions.
With so much happening just in January, the year 2022 looks set to be a watershed year in sustainability.
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