Businesses are revising their climate targets as reality of long-term sustainability transformation hits them, and as a result they are extending commitment targets with average deadlines for climate change commitments shifting back by 14 years to 2050.

EY has published its 2023 Sustainable Value Study, surveying over 500 chief sustainability officers (CSOs) and equivalents representing companies with revenues over $1bn around the world, with the survey reporting that businesses’ progress on sustainability has slowed, with a decline in progress on greenhouse gas (GHG) emissions reductions to a median of 20 per cent, compared to 30 per cent in 2022. Many businesses surveyed are also extending their target deadlines for achieving their climate goals with the median year shifting from 2036 to 2050, requiring large scale investment, planning and cross sector collaboration.

Rising inflation and geopolitical turbulence is impacting businesses’ ability to accelerate sustainability efforts with only 34 per cent of those surveyed planning to spend more to address climate change, down from 61 per cent in 2022.

Despite the challenges, the survey highlighted that delivering on sustainability initiatives has significant financial benefits, with 52 per cent of those surveyed experiencing financial value exceeding their expectations. Additionally, 63 per cent of respondents witnessed better than expected improvements in product and brand value.

But, as gains become harder to make, fewer organisations are leading the charge on climate action. Only 7 per cent of those surveyed qualify as EY’s ‘pacesetters’ - organisations taking the most action on climate change - compared to 32 per cent in 2022.

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