Corporate Sustainability Goals See Budget Boost as Confidence Grows

In a recent survey conducted by Honeywell, it was revealed that more than four out of five companies are gearing up to increase their investments in environmental sustainability initiatives over the next 12 months. The findings signal the rising importance of sustainability goals among businesses and growing confidence in their ability to achieve these objectives.

Honeywell's Environmental Sustainable Index, launched in Q4 2022, aims to provide insights into corporate leaders' perspectives on the progress made toward sustainability commitments. The survey, conducted in collaboration with Futurum Research, reached out to over 750 professionals in business, technology, and sustainability roles. These individuals are directly involved in the planning, strategic development, implementation, or oversight of environmental sustainability goals and initiatives in companies spanning various regions and economic sectors, each with at least 1,000 employees.

Among the key findings, the survey highlighted that sustainability goals have retained their position as the most frequently cited priority among executives, with 75% of organizations considering them one of their top five near-term initiatives. This marks an increase from 65% compared to the previous year. Sustainability goals clearly outweighed Digital Transformation Initiatives, the second most cited priority, at 56%. When examining specific categories within environmental sustainability, Energy Evolution & Efficiency emerged as the leading priority, with 62% of respondents selecting it. It was followed by Emissions Reduction at 47%, Pollution Prevention at 43%, and Circularity & Recycling at 33%.

With sustainability initiatives maintaining their prominence, a significant majority of businesses are planning to expand their budgets for the next 12 months to support the achievement of environmental sustainability goals. Notably, 88% are looking to increase their budget for Energy Evolution & Efficiency, 84% for Emissions Reduction, 84% for Pollution Prevention, and 83% for Circularity & Recycling.

The survey also found that executives express greater confidence in meeting both near-term and longer-term environmental sustainability goals across all categories. The most significant increase in confidence was observed in Emissions Reduction, with 72% of companies feeling optimistic about their goals in this area over the next 12 months, up from 65% in the previous year. Additionally, 72% expressed optimism about their 2030 goals, compared to only 63% in the prior year.

Furthermore, a vast majority of executives reported at least some degree of success in achieving their sustainability goals over the past year, with more than 90% experiencing some level of success across all four categories.

In addition to the survey's primary findings, it included an assessment of the impact of extreme weather and natural disasters on companies' environmental sustainability initiatives. Sixty-two percent of respondents believe that recent wildfires, floods, and storms will materially affect their environmental initiatives. Forty-four percent indicated that extreme heat has had or will have a material impact on their sustainability planning. Moreover, over 40% of respondents stated that these events have inspired or will inspire a significant shift in long-term sustainability investments.

Gavin Towler, Chief Scientist for Sustainability and Chief Sustainability Officer at Honeywell, commented on the findings, saying, "The extreme weather events this year have increased the sense of urgency for immediate action at organizations. As a result, we should expect to see more organizations looking to accelerate their sustainability efforts and, in particular, adopting a technology-driven approach to their energy transition plans."

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