Sustainability in Business: Challenges and Opportunities
As the world grapples with the challenges of climate change, businesses are planning to invest in sustainability, but there are several hurdles to overcome. According to a recent study, four in five (82%) organizations plan to increase investment in environmental sustainability in the next 12-18 months, with three in four execs seeing it as key to future-proofing against regulation (72%), stakeholder trust (69%), and innovation (67%). However, budget constraints (81%), poor data/measurement systems (81%), operational silos (79%), and ongoing geopolitical tensions (65%) are all preventing meaningful progress.
Moreover, two-thirds (67%) of businesses feel increasing demand to show progress via credible, science-based actions. This is further complicated by the fact that consumers are increasingly skeptical about greenwashing, with 62% believing brands are greenwashing, up from 52% in 2024 and 33% in 2023. Only 24% of consumers find sustainable products affordable, and just 16% feel they have enough sustainability information.
Role of AI in Sustainability
Business leaders are now turning to AI tools to make progress in sustainability. Nearly two in three (64%) use AI to support sustainability across reporting, energy efficiency, and climate modeling. However, even AI might not hold all of the answers, as the belief that AI’s benefits outweigh costs have actually fallen from 67% in 2024 to 57% in 2025. In the UK specifically, 95% of companies have not altered net-zero timelines despite global pressures, and more than half (54%) say they’re underprepared for climate impacts.
According to Cyril Garcia, Capgemini Head of Global Sustainability Services and Corporate Responsibility, “With climate risks increasingly high on the corporate agenda, business leaders need to adopt a pragmatic, operational approach and urgently implement concrete, financed transition and adaptation measures.” Despite the challenges, nearly half (49%) of businesses report a positive ROI from sustainability initiatives, often with a faster payback than other investments.
Conclusion and Future Outlook
In conclusion, while businesses are planning to invest in sustainability, there are several challenges to overcome, including budget constraints, poor data/measurement systems, and consumer skepticism. However, with the help of AI and a pragmatic approach, businesses can make progress in sustainability and achieve a positive ROI. For more information on this topic, read the full article Here
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