91% Indian C-Suite Leaders Boost Sustainable Investment Amid Climate Risk, Says Study

Sustainability is increasingly gaining importance among corporate leaders. Ninety one per cent of executives in India have reported a rise in their spending on sustainability initiatives over the last year, according to the Deloitte's 2024 CxO Sustainability Report.

The report, surveying over 157 executives nationwide on their views and strategies related to sustainability and climate change, also indicates that 87 per cent of the Indian CXOs (including CEO, CSO, CFO, CTO/CIO, COO and other executives) are concerned about climate change most of the time. Climate change is a top priority for 40 per cent of the CxOs. Moreover, 62 per cent of them underscored the importance of climate equity and just transition as part of their sustainability efforts.

For 41 per cent of Indian CxOs, transforming the business model to address climate change and sustainability is central to the organisation's strategy—slightly lower than the global average of 45 per cent. Almost equal number of CxOs believe that sustainability considerations are embedded throughout the organisation but do not impact the core business model.

Also Read: India Inc Must Rethink & Redefine Sustainability, says G20 Sherpa Amitabh Kant

Climate Action to Yield Benefits

Climate change will have a high or very high impact on companies’ strategies and operations over the next three years, 78 per cent of CxOs said. Among the primary issues affecting business operations are climate-related disasters (56 per cent) and employee health challenges linked to environmental changes (54-55 per cent).

There are a significant number of business leaders who believe climate action will reap positive results, with 45 per cent of them saying that it will improve investor returns. Enhanced asset values (43 per cent), increased revenue from new businesses (39 per cent), better employee morale (39 per cent) and stronger brand reputation (38 per cent) are identified as other benefits.

The survey reveals that Indian CxOs show better implementation of climate measures than their global counterparts. Compared to 51 per cent globally, about 56 per cent of Indian executives use sustainable materials. While 55 per cent of them are adopting technology solutions for meeting environmental goals, globally only 50 per cent of them are doing the same.

Although business leaders are moving forward towards making their companies more sustainable, challenges persist. Lack of political support and sustainable solutions tops the list of challenges for Indian firms. Businesses also report difficulty in measuring environmental impact and lack of customer/client demand for sustainable goods and services.