Sustainability opportunities | Deloitte Insights

Building momentum for sustainability means making decisions today for a net-zero future

Although many companies are still in the early days of developing their programs, the emerging focus on business strategy, supported by operational plans, resourcing, and governance, is a strong indicator that sustainability has started to take root. As cross-functional teams integrate sustainability thinking into different aspects of the business, they help drive accountability, shape sourcing decisions, inspire new product development, and inform to mergers and divestments.

These foundational shifts are also likely to have ripple effects throughout value chains, putting pressure on companies with less mature programs to adapt or risk being left behind.⁵ Indeed, Deloitte’s research already shows how the landscape has already started to influence business development decisions. In the CxO survey, 51% of respondents say that customer preferences for sustainable products are a key driver today, and 48% say that they are likely to remain so into the future.

For those seeking to advance their efforts in anticipation of the transformational changes ahead, Deloitte’s research⁶ points to a number of areas where organizations can gain traction as the global economy decarbonizes to net-zero emissions: 

• Establish a clear business case for change. If approached in a reactive or siloed way, complying with evolving climate regulations could stymie a company’s future competitiveness or business relationships. But when approached proactively and holistically as a business management strategy, sustainability initiatives can be synergistic in minimizing risks, improving operational efficiency, building resilience to unexpected disruptions, and investing in initiatives that create long-term value in anticipation of future demand.
• Align internal resources to drive progress against goals. Commitments without operational plans or governance can leave an organization vulnerable to greenwashing accusations, whereas sustainability requires meaningful resource allocation and a commitment to continuous improvement. Building a clear governance structure can be empowering because it’s an opportunity for organizations to explore how sustainability can be embedded for strategic advantage and to shift the decision-making culture in service of the long-term objectives.
• Invest in data management systems. Given the complexities of global supply chains, just having access to the data needed to disclose greenhouse gas emissions can be a monumental challenge. But it’s essential to identifying the areas of opportunity for carbon reduction. Rather than focusing on software systems alone, successful organizations look at data management as a broader system that involves allocating resources to supplier data requests, mapping internal processes, identifying existing data sets, establishing the use and value of the information they have, and using that data to support the strategic decision-making.
  
  
• Actively seek stakeholder input. Delivering on stakeholders’ demands for climate action is about more than just complying with external reporting requirements. An authentic commitment to transparency will require business leaders to identify the stakeholders that matter to your organization, engage them in a dialogue about the sustainability matters that are material to your business, and demonstrate how those concerns are being reflected in your plans for change.
  
  

At the intersection of climate necessity and sustainability opportunity, the future is now. The business decisions that leaders make today could make the difference between a future diminished by fading relevance and competitiveness, and one defined by innovation and reinvention.⁷ In the net-zero economy of the future, the opportunities could come to those who are willing to embrace the path of change by integrating new thinking, investing in technology, building management systems, and approaching the future with an entrepreneurial eye to what’s possible.