Sustainability is on the corporate agenda: Forbes releases 2024 sustainability report

C-suite executives are increasingly aware of the impact of climate change on their organizations. This awareness has led to an urgency and greater commitment to prioritizing sustainability across the business and across the value chain.As unpredictable weather patterns and strict environmental regulations become

More commonly, leaders are integrating environmental practices and sustainability goals into their business strategies and making these practices core to their company culture.

this 2024 Forbes State of Sustainability ReportSustainability in Practice, released today, provides a comprehensive overview of the current state of sustainable practices across industries around the world. The report, now in its second year, looks at how businesses are adapting to challenges, adjusting within regulatory frameworks and implementing innovative strategies to achieve ambitious sustainability goals.

This year’s iteration explores the critical role that leadership and organizational commitment play in driving these initiatives forward, and assesses progress against key milestones set for 2030 and 2050. It aims to provide valuable insights and actionable suggestions to help the business community strengthen their sustainability efforts and contribute to a more sustainable future.

For most people, progress in sustainability is personal. I grew up in the Lake Tahoe area. It remains one of the most beautiful places in the world, but climate change is taking its toll on the region. While slowing or even reversing the effects of climate change is not easy or immediate, I find it encouraging to see the progress and commitment of business leaders towards sustainability.

The data speaks for itself: Resiliency is mission critical. When asked where sustainability ranks on the top management agenda, Sixty-five percent say these are among the top three priorities today, compared with just 28% three years ago. Notably, 25% of C-suite executives said it was ranked #1.

Leading sustainability efforts across an organization and its value chain requires leadership characterized by vision, collaboration and deep commitment. According to our research, CEOs and boards set the sustainability agenda and are ultimately accountable for progress. These senior executives must support these initiatives and set clear and ambitious environmental goals that resonate at all levels of the organization.

The Chief Sustainability Officer also plays a key role in developing the organization’s environmental strategy and its overall approach to sustainability. Situated at the executive level, reporting directly to the board of directors or CEO in most cases, the CSO is a catalyst for change and ensures that sustainability is woven into the fabric of the organization’s operations and decision-making processes.

More than 80% of the companies surveyed have a CSO, whose influence spans the entire organization. By providing expert guidance and clear strategic direction, CSOs enable companies to integrate sustainability practices in a way that aligns with their business goals and stakeholder expectations. Compared to companies without a chief sustainability officer, companies with a chief sustainability officer are 27% more confident in the positive impact of their sustainability initiatives. Leaders of organizations with a chief sustainability officer are more confident in the positive impact of their sustainability initiatives. Confidence that development initiatives will have a positive impact on their bottom line and shareholders is 25% more valuable than other organizations.

Innovation continues to play a key role in driving sustainable development. Three-quarters of respondents said emerging technologies will play a key role in driving sustainability in their organizations, as smart grids and energy storage systems, increased investments in the cloud, sustainable materials, advanced analytics and the Internet of Things are today’s priorities Top technology used. However, not every organization is prone to innovation. Only 20% of respondents fully agree that their organizations can effectively harness the transformative power of innovative technologies to achieve sustainability goals.

In 2024, we’ll report on how business leaders are steering their organizations toward a more sustainable future, and how C-suite executives can build sustainable practices and results in their organizations. These leaders are pioneering changes that not only comply with regulatory requirements but push the boundaries of technical and operational feasibility. As they continue to innovate and adapt, these leaders are not only responding to the pressures of climate change, but actively turning these challenges into opportunities for growth, resilience, and long-term success. Their unwavering commitment demonstrates the critical role of leadership in the global transformation to sustainability.

For more information or to access the complete 2024 State of Sustainability Report, please contact me at jhaas@forbes.com.