More than four in five companies plan to increase spending on environmental sustainability initiatives over the next 12 months, as meeting sustainability goals increases its leadership position as a top business priority and executives gain confidence in achieving those goals, according to a new study. survey published by Honeywell, an industrial products, solutions and technologies company.
The results were revealed with the latest release of Honeywell’s Environmental Sustainable Index. Honeywell launched the index in the fourth quarter of 2022, with updated releases planned quarterly, intended to provide insight into how business leaders feel about the progress being made toward their organizations’ sustainability commitments. For the report, prepared in collaboration with Futurum Research, Honeywell surveyed more than 750 business, technology and sustainability professionals directly involved in the planning, strategic development, implementation or monitoring of environmental sustainability goals and initiatives , at companies in multiple regions and economic sectors. sectors, and each with at least 1,000 employees.
The report shows that achieving sustainability goals remains the most cited priority for executives, identified by 75% of organizations as one of their top five short-term initiatives, up from 65% last year, and well ahead of second place. Digital transformation initiatives, at 56%. Of the environmental sustainability categories studied, Energy Evolution and Efficiency was the highest ranked priority category, cited by 62% of respondents who were asked to choose two categories, followed by Emission Reduction at 47%, Pollution Prevention at 43% and Circularity and Recycling at 33% . %.
As sustainability initiatives remain a top priority, the vast majority of companies surveyed reported plans to increase spending to achieve their environmental sustainability goals over the next twelve months, with 88% of them looking to increase their budget for energy evolution and efficiency, and 84% for Emissions Reduction, 84% for Pollution Prevention and 83% for Circularity and Recycling.
The report also shows that executives in every category appear more confident in achieving both their short- and longer-term environmental sustainability goals. this area in the next twelve months, up from 65% last year, and 72% also optimistic about their 2030 goals, compared to just 63% last year.
A large majority of executives surveyed also reported having at least some success in achieving their sustainability goals over the past year, with 90% or more reporting some or extreme success in each of the four categories.
One of the new features in this quarter’s report was an assessment of the impact of extreme weather events and natural disasters on companies’ environmental sustainability initiatives. According to the survey, 62% of respondents believe that wildfires, floods and storms from the past year will have a material impact on their environmental initiatives, while 44% report that extreme heat will have or has already had a material impact. their sustainability planning. Additionally, more than 40% said these events will or have inspired a material change in long-term sustainability investments.
Gavin Towler, Chief Scientist for Sustainability and Chief Sustainability Officer at Honeywell, said:
“This year’s extreme weather conditions have increased organizations’ sense of urgency for immediate action. As a result, we can expect to see more organizations looking to accelerate their sustainability efforts and, in particular, take a technology-driven approach to their energy transition plans.”