UN Global Compact—Accenture CEO Study on Sustainability
11 likes49,845 views
The 2021 UN Global Compact–Accenture CEO Study reveals that 1,230 CEOs are increasingly aware of the urgent impacts of climate change on their businesses, with many beginning to adopt sustainable models and practices. While a significant percentage are diversifying operations and investing in green jobs, challenges remain, particularly in managing scope 3 greenhouse gas emissions and accessing financial resources. CEOs urge policymakers to enhance clarity and support for sustainability goals, highlighting critical actions necessary to combat the climate crisis.
UN Global Compact—Accenture CEO Study on Sustainability
- 1. CLIMATE LEADERSHIP IN THE ELEVENTH HOUR The 2021 United Nations Global Compact– Accenture CEO Study on Sustainability
- 2. ABOUT THE CEO STUDY ON SUSTAINABILITY + 1,230 CEOS PARTICIPATED + 120 IN DEPTH INTERVIEWS ACROSS 113 COUNTRIES + 21 INDUSTRIES 143 WOMEN CEOs 563 CEOs FROM THE GLOBAL NORTH REGION 559 CEOs FROM THE GLOBAL SOUTH REGION 886 MALE CEOs
- 3. CEOs REPORT THAT THEIR BUSINESSES ARE EXPERIENCING THE DAMAGING EFFECTS OF CLIMATE CHANGE AND ARE READY TO TAKE BOLD ACTION.
- 4. % of CEOs that report supply-chain interruptions due to extreme weather events are a top risk THEY ARE NAVIGATING INCREASED FREQUENCY OF NATURAL DISASTERS AROUND THE WORLD… 49%
- 5. …WHICH IS CREATING AN URGENT NEED TO ADAPT AND BUILD RESILIENCE — PARTICULARLY ACROSS SUPPLY CHAINS. % of CEOs that say they have begun diversifying their material inputs in products and operations 64% % of CEOs that say they have begun geographically diversifying their workforce and operations 63%
- 6. PRESSURE FROM INVESTORS AND CAPITAL MARKETS IS INCENTIVIZING MORE RAPID CLIMATE ACTION—ALL AMID A GLOBAL PANDEMIC. 18% 31% 2016 up from 2021 % of CEOs that cite investors as among the most influential stakeholders to manage future sustainability efforts
- 7. CEOs SAY THE IMPACTS ARE A WAKEUP CALL THAT’S ACCELERATING THEIR TRANSITION TO MORE SUSTAINABLE BUSINESS MODELS. % of CEOs that say they are already developing new sustainable products and services % of CEOs that say they have begun deploying new and circular business models 81% 74%
- 8. SOME COMPANIES HAVE FORMED PARTNERSHIPS WITH COMPETITORS AND ARE ADDRESSING BIODIVERSITY RISKS… % of CEOs that say they are engaging in cross-sectoral initiatives on greenhouse gas (GHG) reduction 49% % of CEOs that cite loss of biodiversity and related ecosystem services as a risk to their business 21%
- 9. …WHILE HUNDREDS HAVE SET SCIENCE- BASED TARGETS IN LINE WITH THE PARIS AGREEMENT… ...but thousands more need to increase their ambition to ensure a viable future. % of CEOs that say they believe they are working towards a 1.5°C temperature rise trajectory, yet only 2% of these have a target validated by the Science Based Targets initiative (SBTi) 57%
- 10. CEOs SAY THE WINDOW OF OPPORTUNITY TO TURN THINGS AROUND IS CLOSING, BUT KEY ACTIONS CAN HELP.
- 11. AS CEOs TRANSITION TO NET-ZERO BUSINESS MODELS, SOME REPORT THEY ARE STRUGGLING TO MANAGE SCOPE 3 GHG EMISSIONS… % of CEOs that say they have already started advancing net-zero business models, yet only 16% say they are at an advanced level % of CEOs that say they have begun measuring and reporting scope 3 GHG emissions, yet only 16% are doing so at an advanced level 55% 65%
- 12. …AND HAVE ONLY JUST BEGUN ADVANCING NATURE BASED-SOLUTIONS TO BUILD MORE RESILIENT COMPANIES. % of CEOs that say they have begun exploring nature-based solutions % of CEOs that say they are utilizing them at an advanced level 46% 7%
- 13. CEOs ALSO SAY THEY HAVEN’T DONE ENOUGH TO MITIGATE WORKFORCE DISRUPTION AND ENSURE A JUST TRANSITION TO A GREEN ECONOMY. % of CEOs that say they consider reduced opportunities from the impacts of climate change for workers to be a top risk % of CEOs that say they are investing in green jobs to deliver on the 2030 Agenda and the Paris Agreement 16% 47%
- 14. CEOs AGREE THAT TECHNOLOGY IS ENABLING NEW BUSINESS MODELS AND WILL UNLOCK THE FUTURE OF INDUSTRY DECARBONIZATION. But to fulfil technology’s promise, CEOs will need effective data management across the value chain and must overcome affordability and knowledge constraints. % of CEOs that cite the affordability of technologies as a critical barrier to efforts 54% % of CEOs that report they struggle to understand which technologies can enhance their credentials 53% % of CEOs that say difficulty in measuring ESG data across the value chain is a barrier to sustainability 63%
- 15. CEOs ARE DEMANDING AN INCREASE IN CLIMATE FINANCING FOR THE GLOBAL SOUTH TO CATALYZE THEIR RESPONSE. Global South 45% 55% Global North vs. % of CEOs in the Global South vs. the Global North that cite a lack of financial resources as a top barrier to implementing their sustainability strategy Global South 48% 66% Global North vs. % of CEOs in the Global South vs. the Global North that cite affordability of available technology as a top barrier to implementing their sustainability strategy
- 16. SOME CEOs HAVE A HEAD START. THESE TRANSFORMATIONAL* LEADERS DEMONSTRATE BEHAVIORS THAT ARE CRITICAL TO ACHIEVING A COMPETITIVE ADVANTAGE FROM SUSTAINABILITY.
- 17. LEADING CEOS SAY THEY HAVE BEGUN DIVERSIFYING THEIR OPERATIONS AND WORKFORCES… Twice as many transformational CEOs say they are advanced in designing resilient infrastructure 20% vs. 41% Transformational CEOs All others Nearly three times as many transformational CEOs say they are advanced in diversifying material inputs required for products and operations 12% vs. 33% Transformational CEOs All others
- 18. … ARE ACCELERATING R&D INVESTMENT IN CLIMATE-RESILIENT SOLUTIONS AND ARE HOLDING THEMSELVES TO HIGHER STANDARDS OF ACCOUNTABILITY. Transformational CEOs 13% 31% All others vs. Nearly twice as many transformational CEOs say they are advanced in boosting research and development investment for climate-resilient solutions Transformational CEOs 16% 43% All others vs. Nearly three times as many transformational CEOs say they are advanced in assessing and disclosing climate-related financial risk
- 19. Transformational CEOs 10% 26% All others vs. Almost twice as many transformational CEOs say they are advanced in their journeys to divest from existing fossil fuel investments Transformational CEOs 52% 62% All others vs. A larger percentage of transformational CEOs say they are investing in green jobs to deliver on the 2030 Agenda and the Paris agreement THESE TRANSFORMATIONAL COMPANIES ARE SHIFTING FROM FOSSIL FUEL USE FASTER AND RESKILLING THEIR WORKFORCE IN SUSTAINABILITY.
- 20. TO MAKE THE MOST IMPACT, CEOs SAY POLICY MAKERS MUST TAKE CRITICAL ACTIONS. Align Nationally Determined Contributions (NDCs) on the pathway to limit global temperature rise to a 1.5°C warming trajectory Enhance global cooperation on carbon pricing mechanisms aligned with the Paris Agreement Establish common standards for biodiversity protection and pathways for nature-based solutions Increase business engagement in climate policy formation for collaborative climate action Meet and exceed the USD 100 billion commitment in climate financing goal for the Global South CEOs are asking for five critical policy actions: Only 18% of CEOs say governments and policymakers have given them the clarity needed to meet their sustainability goals.
- 21. The United Nations Global Compact–Accenture CEO study on sustainability offers a call to action, from more than 1,230 CEOs across 113 countries and 21 industries, at the urgent opportunities and challenges towards addressing the climate crisis. * To identify “transformational companies” we used Accenture’s Competitive Agility Index (CAI). We assessed the performance of more than 9,000 of the largest companies globally on indicators for growth, profitability, and sustainability/trust. Using each company’s raw scores across these indicators respective to their industry peers, we isolated four distinct segments—transformational, transactional, notional and vulnerable—to identify various classifications of high-performance business and sustainability leadership. www.accenture.com www.unglobalcompact.org ABOUT THIS STUDY