Sustainability Investments Are Climbing Across Companies
Across organizations, spending on sustainability is rising fast. The latest research shows that 85% of organizations increased their sustainability investments over the past year, up from 75% previously. It’s a clear signal that climate considerations are no longer a side project; they’re moving into the core of strategy and day?to?day operations. Leaders are treating climate risk and opportunity as business issues—cost, resilience, growth—rather than as separate environmental initiatives. That shift, from acknowledgement to budget, marks a meaningful turn in how companies plan, prioritize, and run their businesses.
Leaders See Climate Risks—and Are Reworking Strategy
Executives expect the pressure to intensify soon. Seventy percent say climate change will have a high or very high impact on their companies within the next three years. That outlook isn’t staying in the abstract. Nearly half of C?suite leaders—45%—are already reshaping business models to address sustainability frequently and effectively. They’re building climate into product decisions, operations, and procurement. They’re testing new ways of working that can stand up to shifting regulations and customer expectations. In short, they’re moving from one?off programs to persistent change.
Tech Moves From Pilot to Practice
Technology is doing more than generating dashboards. About half of CxOs have already put technology solutions in place to meet climate commitments, and another 42% expect to do so within the next two years. These tools help track emissions, optimize energy use, and modernize processes. Just as important, they’re opening doors to new products and services, which is becoming vital for growth. The throughline is simple: better data, better decisions, better outcomes. As implementation moves from pilots to scaled deployment, tech is becoming the backbone of how companies set targets, measure progress, and deliver on climate goals.
Sustainability as a Growth Strategy
For many leaders, climate action and business performance can go together. An overwhelming 92% believe their companies can grow while significantly reducing greenhouse gas emissions. That confidence is pushing teams to rethink how value is created—designing offerings with efficiency in mind, upgrading operations, and engaging partners who share climate ambitions. Suppliers that meet defined sustainability criteria are getting more attention, underscoring how closely supply chains are tied to an organization’s overall environmental footprint. The message is consistent: growth that cuts emissions is not only possible; it’s the plan.
Hiring, Retention, and the Green Edge
Sustainability also shows up in the labor market. Executives report that stronger environmental practices help attract and keep talent. That tracks with what workers say: more than 40% of Gen Z and Millennials are rethinking where they work based on environmental factors. Companies are responding. Forty?nine percent of executives are preparing their workforce for green jobs, signaling a proactive stance as roles evolve. Training, reskilling, and clearer pathways into climate?relevant work aren’t just good optics—they’re becoming table stakes in competing for people who want their day job to align with their values.
Momentum Meets Friction
Progress, however, isn’t evenly distributed. There’s still a gap between recognizing the stakes and executing at scale. Many organizations struggle to turn aspirations into concrete, sustained change. While more than half are concentrating on actions that drive meaningful impact, a full quarter report minimal to no progress. That split matters. Among the organizations committing to “needle?moving” actions, you can see strategies start to shift: tighter goals, clearer accountability, and investments that strengthen resilience as well as sustainability. The rest risk falling behind as standards rise and expectations harden.
Room to Improve—and a Middle Ready to Move
There’s reason for optimism. Organizations in the “moderate middle” expect climate considerations to have a high impact on their strategy in the years ahead. They’re signaling intent to step up—tightening targets, upgrading tools, and aligning teams. That momentum could be catalytic. As these companies deepen their sustainability posture, they set the stage for practices that scale across functions and partners, bringing business performance and environmental aims into better alignment. It’s not flashy work, but it’s the kind that compounds.
What Comes Next
As climate pressures intensify, executives are refining sustainability strategies to deliver both societal and business value. The guidance is practical: lean into what already works, build new partnerships where they extend your reach, and frame initiatives in terms of the results they create. Done well, these moves help mitigate climate risk while positioning organizations to compete in a net?zero economy. The arc is steady: clarify the goals, invest with intent, and keep translating plans into outcomes—one decision, one supplier, one product at a time.
Frequently Asked Questions
What signals the shift in organizational investment toward sustainability?
The study reports that 85% of organizations increased their sustainability investments over the last year, up from 75% previously, showing a clear shift from talk to action.
How soon do executives expect climate change to affect their businesses?
Seventy percent of executives anticipate a high or very high impact within three years, and 45% of C?suite leaders are already reworking business models to respond.
Where does technology fit into achieving climate objectives?
About half of CxOs have implemented technology solutions to meet climate commitments, with another 42% planning to do so within two years, using tech to measure, manage, and innovate.
Can companies grow while cutting emissions?
Yes. Ninety?two percent of leaders believe growth and emissions reductions can happen together, supported by sustainable practices and suppliers that meet defined criteria.
How are companies preparing their people for sustainability goals?
Executives see sustainability influencing hiring and retention, with over 40% of Gen Z and Millennials weighing employers’ environmental practices; 49% are preparing workers for green jobs.
