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1、1Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions#GetTheFutureYouWantHEIGHTENED SUSTAINABILITY AWARENESS YET LAGGING ACTIONSA World in Balance 2023At the core of this report lie the twin pillars of environmental and social sustainabilit

2、y,articulating the profound significance of these intertwined dimensions.This thematic route echoes the paramount importance of nurturing both aspects in unison,mirroring the symbiotic relationship that underpins sustainability.Through the visual imagery presented within,we aim to convey the notion

3、of equilibrium and coexistence,highlighting the delicate balance that is essential for sustainable progress.The cover image depicts a cranberry harvest in North America.There is only one harvest season per year,from mid-September to early November,when cranberries reach their peak color.3Capgemini R

4、esearch Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsExecutive Summary Human activity is exerting an unprecedented destabilizing influence on Earths climate and ecosystems.Not only have six of the nine planetary boundaries been crossed,but we are edgin

5、g ever closer to the remaining three,risking irreversible change and harm to our ecosystems.1,2 In last years first edition of our annual A World in Balance research series,we found that,while organizations across industries have set long-term targets for achieving environmental sustainability,limit

6、ed implementation is visible on the ground.Our 2022 research revealed that many executives remained unclear as to the business case for sustainability,regarding it as an unwelcome cost driver rather than an investment opportunity.Around half of respondents believed sustainability is a non-viable opt

7、ion,with the costs involved in pursuing it outweighing the benefits.In 2023,likely driven by the increasing incidences of extreme weather around the world,coupled with more stringent regulation,this has begun to change.More executives today say the sustainability business case is clear;in fact,this

8、percentage has tripled in the past year,from 21%in 2022 to 63%.More also say that the benefits of sustainability outweigh the costs and view sustainability more positively than as simply a financial obligation.Despite the improved sentiment on sustainability and clarity around the business case,inve

9、stment in sustainability has not increased in 2023.Our research reveals that organizations continue to fall short in terms of reporting on environmental sustainability initiatives,especially in measuring and collecting Scope 3 emissions.Similarly,action around sustainable product design has been les

10、s than impressive since last years research.There are pockets of progress,however,in defining sustainability priorities and redesigning business models.In fact,57%of executives shared that their organization is in the process of redesigning its business/operating model to be more sustainable,up from

11、 37%in 2022.Biodiversity is also becoming more of a focus for organizations.With such significant improvements this year in the sustainability sentiment,we expect investment and more sustained action to follow suit in the coming year or two.Importantly,social sustainability is moving up the corporat

12、e agenda,with over half of executives(56%)saying their organization is increasingly focused on the social dimension of environmental,social,and corporate governance(ESG),4Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsExecutive Summary

13、 with organizations own employees being the primary beneficiaries.Our research reveals that organizations can do more to support workers in the supply chain,as only 38%currently restrict global suppliers to those who pay a living wage.They can also expand their ranges of accessible products and serv

14、ices to be more inclusive to people with a disability,health condition,or impairment,and by making them more affordable to local communities.In this years research,we also explored the critical topic of greenwashing.We found a perception gap between executives and consumers:only 17%of executives are

15、 concerned by the risk of greenwashing,while 33%of consumers globally believe organizations and brands are greenwashing their sustainability initiatives,rising to 50%among Gen Z consumers.We also found that organizations are pinning their hopes on digital technology and,in particular,generative arti

16、ficial intelligence(AI),to help them achieve their sustainability goals.Fifty-nine percent of executives believe that generative AI will play a key role in their organizations sustainability transformation efforts.Ensure sustainability is a boardroom priority Embed social sustainability in the susta

17、inability strategy Focus on quantifying Scope 3 emissions accurately Embrace circular and inclusive design Close the intention-action gapExplore the potential of technology to achieve climate goals010305020406Lastly,our report shares recommendations for sustainability leaders to accelerate environme

18、ntal and social initiatives from positive perception to sustained action:5Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsWHO SHOULD READ THIS REPORT AND WHY?This report offers comprehensive insights into important sustainability trends

19、,both environmental and social,for the global corporate sector.It also provides perspective on shifts in these trends over the past year.Large organizations across industries such as aerospace and defense,automotive,consumer products and retail,energy and utilities,healthcare and life sciences,indus

20、trial manufacturing,public/government,and telecom,and any others that have ambitions to make an impact in a climate or social sphere,will find this report valuable.This report offers recommendations for executives to assist them in accelerating their sustainability journeys.It provides practical ste

21、ps that senior leaders can take to begin developing a sustainability strategy and/or to advance their current sustainability actions.Given the importance of sustainability to different areas of business,this report is useful to a wide audience.The report caters to leaders across corporate functions(

22、e.g.,strategy,sustainability,corporate social responsibility,sales and marketing,finance and accounting,and human resources)and functional leaders within value chain departments(e.g.,R&D,product design,sourcing and procurement,logistics,and production).This report is based on original findings from

23、a comprehensive industry survey of 2,151 senior executives(director level and above)from 718 leading organizations across 13 countries,with annual revenue above$1 billion.Around 50%of surveyed executives are employed within corporate functions,and the remaining 50%come from value chain functions.We

24、also conducted a global survey of 6,500 consumers to complement the executive findings.Please see the research methodology at the end of the report for more details.6Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions7Capgemini Research In

25、stitute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsIntroduction This report is the second in Capgeminis annual research series that examines evolving corporate sustainability trends.In the first report of this series,we explored whether organizations are takin

26、g sustainability seriously and assessed their progress in transforming towards sustainability across strategy,products and services,operations,IT,and data use.We also explored the relationship between the maturity of organizations sustainability transformations and their financial performance.In our

27、 2022 research,we discovered that,while organizations across industries have set long-term targets for achieving environmental sustainability,limited action is visible on the ground.In this years report,we examine the shifts in the aforementioned trends over the past year,and also explore the most s

28、ignificant newly emerging themes.Critically,we examine the extent to which organizations are focusing on social topics as part of their sustainability ambitions.To address these questions and themes,we conducted a global research study covering large organizations across 13 countries:Australia,Canad

29、a,France,Germany,India,Italy,Japan,the Netherlands,Norway,Spain,Sweden,the UK,and the US.These organizations operate across key industries and sectors,including aerospace and defense,automotive,consumer products,energy,financial services,healthcare and life sciences,industrial manufacturing,retail,t

30、elecom,utilities,and the public sector/government.The research focuses on practices and initiatives within environmental and social sustainability.The research structure includes a survey of 2,151 respondents from 718 organizations with annual revenue in excess of$1 billion.They are divided into the

31、 following profile groups:50%are executives from corporate functions,including strategy,sustainability,sales and marketing,finance and accounting,IT,operations,and human resources 50%are executives from value-chain functions including innovation/R&D,product design and development,sourcing and procur

32、ement,supply chain and logistics,and manufacturing and productionWe surveyed three executives from every organization included in the research.We also surveyed 6,500 consumers across the 13 countries to complement the findings from executives.For more details on the survey samples,please refer to th

33、e research methodology.8Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsIntroduction This report comprises five sections:The sustainability business case comes into focusSocial sustainability is moving up the corporate agenda Improved p

34、erceptions of sustainability are driving action plans and prioritiesGenerative AI has promising use cases for sustainabilityRecommendations:How organizations can accelerate their sustainability transformations 123459Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability a

35、wareness yet lagging actionsTHE SUSTAINABILITY BUSINESS CASE COMES INTO FOCUS 0110Capgemini Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsMore executives see sustainability as a growth opportunity Organizations today understand the business cas

36、e for environmental sustainability better than even a year ago.In 2022,only 21%of executives agreed that the business case for sustainability was clear.In 2023,this percentage has tripled to 63%.In addition,the percentage of executives that claim the cost of sustainability initiatives outweighs the

37、benefits and that sustainability initiatives are a financial burden has declined by more than half in the past year(see Figure 1).“The only way IKEA can be successful in the future is to be in a hurry to get sustainable.We need to get smarter on how we use energy and materials across the whole value

38、 chain,”says Jesper Brodin,CEO of Ingka Group.3 Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2022,N=2,004 executives,668 organizations;AugustSeptember 2023,N=2,001 executives,668 organizations.FIGURE 1.Over 60%of executives now say that the business

39、 case for sustainability is clear%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOW21%63%53%24%53%22%Sustainability initiatives are a financial burden we have to bear in order to do businessThe cost for sustainability initiatives outweighs the benefitsThe business case for sustainability is clearSep

40、tember 2022 September 202311Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsThis years research witnessed a consistent decline across countries in the share of executives agreeing that sustainability initiatives are principally a financ

41、ial burden.US executives are the least progressive in this regard,with 38%viewing sustainability as a financial burden they must bear to do business(see Figure 2).Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2022,N=2,004 executives,668 organizations

42、;AugustSeptember 2023,N=2,001 executives,668 organizations.FIGURE 2.The view of sustainability as a financial obligation has declined across all countries but remains most pronounced in the US%OF EXECUTIVES BY COUNTRY WHO AGREE WITH THE STATEMENT:SUSTAINABILITY INITIATIVES ARE A FINANCIAL BURDEN WE

43、HAVE TO BEAR IN ORDER TO DO BUSINESSSeptember 2022 September 2023NetherlandsItalySpainIndiaJapanSwedenUKGermanyCanadaFranceAustraliaUSGlobal53%64%61%59%54%54%54%51%50%49%47%44%44%19%20%15%34%12%15%18%15%27%18%22%38%26%12Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainabili

44、ty awareness yet lagging actionsKey drivers of the sustainability business caseDrivers of this positive sentiment over the past 12 months include:Extreme weather affecting every continent:Catastrophic weather events have touched every continent in recent years.Summer 2023 was the most extreme ever,w

45、ith historic temperature rises,wildfires,and storms.This is driving public discourse around climate change.For example,there were record high temperatures in China,Europe,North Africa,the US,and the Middle East;wildfires in Europe,Canada,and the US;flooding in the Middle East and the US;drought cond

46、itions in the Horn of Africa and Chile;as well as the warmest sea temperatures on record.4,5 Costs from climate disasters being consistently high:Extreme weather events lead to significant costs to society,including damage to infrastructure,property,agriculture,and human health.A recent study estima

47、tes that from 2000 to 2019,weather events such as hurricanes,floods,and heat waves cost$2.86 trillion globally,averaging$143 billion annually.The study also projects that the global cost of climate damage will be between$1.7 trillion and$3.1 trillion per year by 2050.6,7 To date in 2023,the US alone

48、 has experienced 24 weather/climate disaster events with losses exceeding$1 billion each according to the US National Centers for Environmental Information.8 More organizations motivated by regulation:Sixty-four percent of executives in our survey shared that a motivating factor for adopting environ

49、mental and/or social sustainability strategies and initiatives was to comply with current regulation,up from 51%in 2022.Increasing pressure from regulators:The EU Corporate Sustainability Reporting Directive(CSRD)came into effect in 2023.CSRD requires all large organizations and listed small-and med

50、ium-sized organizations to report regularly on their environmental and social impact and defines a standard reporting framework for non-financial data.Failure to comply with CSRD can attract significant sanctions,according to the European Commission.9 The Corporate Sustainability Due Diligence Direc

51、tive(CSDDD)is set to take effect in 2025 or 2026,and will make it mandatory for organizations operating in the EU to address adverse impacts of their operations and supply chains on 64%of executives in our survey shared that a motivating factor for adopting sustainability was to comply with current

52、regulation,up from 51%in 202213Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsenergy and cut carbon emissions.The IRA offers tax credits for organizations that manufacture in the US and provides subsidies for both domestic and internat

53、ional organizations.13 In the US,more than$21.7 billion has been committed to support early-stage clean tech in areas like carbon storage,electric vehicles,and clean energy.The EU lags with$8.7 billion in similar projects since the enforcement of IRA.14 The difference is most dramatic in clean hydro

54、gen.EU venture capital investments in clean hydrogen reached a peak of 343 million in Q1 2022,nearly three times that of the US.However,in subsequent quarters,US investments in green hydrogen consistently surpassed EU investments,totaling 1.2 billion more over the entire period.15 Consumer protectio

55、ns for sustainability gain traction:In May 2023,the European Parliament adopted a new directive to restrict business practices that limit consumers sustainable choices.16 In June 2023,the UK Advertising Standards Authority released updated guidance on misleading environmental claims and social respo

56、nsibility.17 More organizations setting net zero targets:As of June 2023,929 organizations from the Forbes 2000 list have set net zero targets,up 32%from 702 in June 2022.18human rights and the environment.In March 2022,the US Securities and Exchange Commission(SEC)proposed a climate-related disclos

57、ure rule that would require publicly traded organizations to report Scope 1,Scope 2,and Scope 3 carbon emissions in initial filings and annual financial reports.11 New standards coming into force:2023 saw groundbreaking sustainability agreements,including the adoption of the Kunming-Montreal Global

58、Biodiversity Framework set at COP 15,the first science-based targets for nature,and the final recommendations from the Taskforce on Nature-related Financial Disclosures in September 2023,which will enable organizations to assess,disclose,and manage nature-related risks and impacts.12 More organizati

59、ons motivated by revenue potential:Three-quarters(74%)of executives in our survey shared that a motivating factor for adopting environmental and/or social sustainability strategies and initiatives was to increase future revenue,up from 52%in 2022.The US Inflation Reduction Act(IRA)gains momentum:Sig

60、ned into law in August 2022,the landmark climate legislation made investing in climate technologies in the US more attractive.The IRA includes funding,programs,and incentives to accelerate the transition to clean More organizations committing to/validating science-based targets:More organizations se

61、t targets in 2022 than in the entire preceding seven-year period,representing an 87%increase in targets validated by SBTi from 2021 to 2022.By the end of 2022,the 4,230 organizations with science-based targets or commitments represented 34%of the global economy by market capitalization.1974%of execu

62、tives in our survey shared that a motivating factor for adopting sustainability was to increase future revenue,up from 52%in 202214Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsAT MOST ORGANIZATIONS,THE BOARD ENGAGES WITH SUSTAINABILI

63、TYMost executives in this years survey agreed that their board of directors is actively engaging with their organizations sustainability strategy,meaning they prioritize sustainability and are working in close collaboration with the CEO and management team on devising strategy.Board engagement is hi

64、ghest in India(77%)and lowest in Japan(39%)(see Figure 3).The high proportion of board engagement in India may be driven by the mandate requiring companies above a certain size to invest 2%of their net profits on corporate social responsibility(CSR)projects every year.Source:Capgemini Research Insti

65、tute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=1,076 executives from corporate functions.FIGURE 3.Nearly 60%of executives globally say their board of directors is engaged with sustainability strategy%OF EXECUTIVES BY COUNTRY WHO AGREE WITH THE STATEMENT:OUR BOARD OF DIRECTOR

66、S PRIORITIZES SUSTAINABILITY AND IS ACTIVELY ENGAGED WITH OUR ORGANIZATIONS SUSTAINABILITY STRATEGY(SEPTEMBER 2023)59%77%73%72%69%63%62%60%54%54%53%48%43%39%JapanFranceSpainAustraliaItalySwedenGermanyUKNorwayNetherlandsUSCanadaIndiaGlobal15Capgemini Research Institute 2023A World in Balance 2023:Hei

67、ghtened sustainability awareness yet lagging actionsIMPROVED PERCEPTIONS OF SUSTAINABILITY ARE DRIVING ACTION PLANS AND PRIORITIES 0216Capgemini Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsThe positive shift in sentiment has not translated to

68、 increased sustainability investment yetIn our current 2023 research,average annual investment in environmental sustainability initiatives and practices across industries represents 0.92%of total revenue,up from 0.91%in 2022.This increase represents an additional$1.4 million investment per company o

69、n average,year on year.As was the case in 2022,total spending on sustainability trends upward with organization size,but larger organizations invest less as a percentage of total revenue:on average,only 0.42%of total revenue compared with 2.9%among smaller organizations(see Figure 4).Source:Capgemin

70、i Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2022,N=668 organizations;AugustSeptember 2023,N=668 organizations.FIGURE 4.Sustainability investment stayed broadly unchanged in 2023 AVERAGE ANNUAL INVESTMENT IN SUSTAINABILITY AS A%OF TOTAL REVENUE,BY COMPANY SIZE 202

71、2-Average sustainability investmentas a%of total revenue2023-Average sustainability investmentas a%of total revenue0.91%0.92%2.81%2.90%1.40%1.37%0.78%0.79%0.41%0.42%Annual revenue globally$20 bn+$10 bn-$20 bn$5 bn-$10 bn$1 bn-$5 bnAll companies17Capgemini Research Institute 2023A World in Balance 20

72、23:Heightened sustainability awareness yet lagging actionsHowever,organizations have progressed in defining sustainability initiatives and redesigning business models The share of executives that say their organization has a defined priority list of sustainability initiatives to implement in the nex

73、t three years is up to 61%,from 49%in 2022.In addition,more executives shared that their organization is in the process of redesigning its business/operating model to be more sustainable(37%in 2022,up to 57%in 2023)(see Figure 5).Source:Capgemini Research Institute,Sustainability Transformation Tren

74、ds Survey,AugustSeptember 2022,N=1,003 executives in corporate functions;AugustSeptember 2023,N=1,001 executives in corporate functions.FIGURE 5.More than half of executives say their organization has a 3-year priority list of initiatives and is redesigning its business/operating model to be more su

75、stainable%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOWSeptember 2022 September 202349%61%37%57%We are redesigning our business/operatingmodel,so it is more sustainableWe have a clearly defined prioritylist of sustainability initiatives to be implementedin the next three years18Capgemini Researc

76、h Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsExecutives at organizations with boards who are actively engaged in sustainability are even more optimistic on these measures:74%of executives with engaged boards say they have a clearly defined priority l

77、ist of sustainability initiatives,compared with 61%on average57%of executives say that their organization is redesigning its business/operating model to be more sustainable 71%say they are redesigning their business or operating models to be more sustainable(versus 57%on average)Further,executives a

78、t organizations with engaged boards are more likely to agree that,by 2040,they will have more sustainable business models(88%versus 53%on average,globally).19Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsBiodiversity has become more o

79、f a focal pointIn our recent biodiversity research,63%of executives surveyed said biodiversity is important to their company,but only 24%of organizations have a biodiversity strategy.20 While most organizations lack a coherent strategy to protect biodiversity and combat biodiversity loss,they have p

80、rogressed in actions taken since last year.In our current research,59%of executives say that their organization monitors the conversion of natural ecosystems(i.e.,changes owing to deforestation)on their owned or managed lands,up from 47%in 2022.In addition,56%say their organization invests in conser

81、ving natural habitats,up from 43%in 2022(see Figure 6).Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2022,N=1,001 executives in value chain functions;AugustSeptember 2023,N=1,000 executives in value chain functions.FIGURE 6.Organizations have improve

82、d their actions to preserve biodiversity%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOW47%59%43%56%We invest in conserving natural habitats(such as rainforests)We monitor the conversion of naturalecosystems(i.e.,changes owing to deforestation)on our owned/managed landsSeptember 2022 September 202

83、320Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsIn the sections that follow,we highlight three key challenges that organizations face today in their sustainability transformations relating to:Developing sustainable products and servi

84、ces Measuring Scope 3 emissions Reporting and disclosing environmental sustainability dataActions addressing these three topics have largely remained unchanged from last year or,in some cases,declined.60%of executives say their organization reports a carbon footprint for every product/service they s

85、ell,virtually unchanged from 2022 21Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsSustainable product design and development have seen only limited advancement There has been limited to no movement in key areas related to product desi

86、gn and development.For example,60%of executives say their organization reports a carbon footprint for every product/service they sell,virtually unchanged from 2022(59%).In the case of designing products to have longer life spans,the share of executives who say their organization does this declined f

87、rom 57%in 2022 to 47%in 2023.When it comes to eliminating fossil fuels and moving away from product design using virgin timber,organizations have made headway,being up 15%in both areas(see Figure 7).Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2022,

88、N=1,001 executives in value chain functions;AugustSeptember 2023,N=1,000 executives in value chain functions.*AugustSeptember 2022,N=1,003 executives in corporate functions;AugustSeptember 2023,N=1,001 executives in corporate functions.FIGURE 7.Almost as many executives are acting on sustainable pro

89、duct design in 2023 as in 2022%OF EXECUTIVES WHO AGREE WITH THE STATEMENTSSeptember 2022 September 202359%60%58%57%57%47%54%55%52%53%47%62%44%59%We are redesigning products to have a lower impact on forests(e.g.,usingless virgin timber so fewer trees are cut down)We are redesigning products to remov

90、e fossil-fuel feedstocksources(such as coal)We take back end-of-life products from customers to use them in theremanufacturing process/upcycleWe perform LCA(life-cycle assessment)on all of our products/servicesWe are designing products so they can serve their originally intendedfunctions for longer

91、Circularity is a key component of our sustainability strategy*We communicate a carbon footprint for every product/service we sell*22Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsTracking Scope 3 emissions is proving challengingThe sha

92、re of executives that say their organization has the ability to measure and collect data on Scope 1 and 2 emissions has remained unchanged,year on year.For Scope 3 emissions(emissions from indirect sources in the value or supply chain),the share has declined from 60%in 2022 to 51%in 2023(see Figure

93、8).Organizations in the EU are beginning to realize just how complex it is to fulfil the requirements of the now active CSRD(Corporate Sustainability Reporting Directive).According to recent research from Capgemini and CDP(the not-for-profit charity that runs the global environmental impact disclosu

94、re system),of emissions disclosed by European organizations in 2022,92%were Scope 3.Measures taken to reduce these customer-and supplier-related emissions only covered an average of 37%of total emissions from these categories.21 23Capgemini Research Institute 2023A World in Balance 2023:Heightened s

95、ustainability awareness yet lagging actionsSource:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2022,N=1,001 executives in value chain functions;AugustSeptember 2023,N=1,000 executives in value chain functions.*Scope 1 emissions are direct emissions from bu

96、ildings or assets owned or controlled by an organization,such as the emissions associated with fuel consumption and refrigerant gases.Scope 2 emissions relate to emissions associated with the consumption of electricity,heat,or steam.Scope 3 emissions are all other emissions generated within an organ

97、izations value chain,including upstream and downstream emissions.They occur as a result of the activities of an entity,but from sources not owned or controlled by that entitys business.FIGURE 8.Fewer executives say their organization can measure and collect Scope 3 emissions data in 2023 compared wi

98、th 2022%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOW*September 2022 September 202360%61%60%51%We are able to measure and collect dataon our Scope 3 emissionsWe are able to measure and collect data onour Scope 1 and Scope 2 emissionsDaniel Schneiders,Director of Climate Program at pharmaceutical

99、 and biotechnology company Bayer,comments on the challenge:“To achieve significant reductions in the supply chain,we are intensifying our collaboration with suppliers.We are trying to understand how we could work together so that they can reduce their emissions,in particular through shifting to rene

100、wable energies.We have also updated our Supplier Code of Conduct However,accessing emissions data from suppliers is a challenge as,for instance,they do not necessarily have dedicated data-monitoring processes or IT infrastructures.Additionally,lacking standards,data is hard to compare.Currently,ther

101、efore,attaining a complete and precise assessment as a foundation for steering Scope 3 emissions remains complicated.”2224Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions54%of executives say that their organization has sustainability da

102、ta audited by a third partyOrganizations are still challenged by reporting on environmental sustainability There has been some improvement in whether organizations have their sustainability data audited by an outside party and a decline in the use of third parties for disclosure and benchmarking(see

103、 Figure 9).Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2022,N=1,003 executives in corporate functions;AugustSeptember 2023,N=1,001 executives in corporate functions.FIGURE 9.More executives are using third parties to audit sustainability data but f

104、ewer are using them to disclose and benchmark progress%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOWSeptember 2022 September 202350%54%54%48%50%42%We use third-party sustainability indices(e.g.,Dow Jones Sustainability Index)to benchmark our progresson sustainabilityWe use an external third part

105、yto help disclose our environmentalimpact(e.g.,CDP Worldwide)We have our sustainabilitydata audited by a third party 25Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsWHO ARE THE SUSTAINABILITY LEADERS?As seen in our research over the p

106、ast three years,many organizations work on sustainability initiatives and discrete projects in silos,with no overarching strategy or governance mechanisms.Becoming a sustainable business is a long and complex process,demanding a transformation of operating models,technology,and attitudes.To gain a s

107、ense of where organizations are in their sustainability journeys and identify the leading organizations,we mapped their sustainability maturity across three dimensions:Value chain processes:We assessed the sustainability initiatives and activities of organizations across the value chain,including so

108、urcing,R&D/product design/innovation,manufacturing,and logistics,as well as the use of technology for sustainability.Sustainability enablers:This dimension relates to organizations getting their people to buy into their sustainability cultures,supported by corporate functions such as IT,finance and

109、accounting,and sales and marketing.Tech accelerators:This dimension refers to the adoption of digital technologies and pathways to accelerate sustainability transformation.These include investments in AI,automation,digital twins,Internet of Things(IOT),as well as hydrogen infrastructure,gigafactorie

110、s,electrification,bioeconomy,industrial-scale carbon capture,utilization,and storage(CCUS),and the transformation of grids to enable decarbonization and integration of new clean energies.Source:Capgemini Research Institute analysis.FIGURE 10.The building blocks of sustainability transformationVALUE

111、CHAINPROCESSESSUSTAINABILITYENABLERSTECHACCELERATORS Sourcing Innovation/R&D/product design Manufacturing Logistics Technology Vision and leadership Talent Culture IT Finance andaccounting Sales and marketing AI/machine learning Automation AR/VR Collaboration tools 3D printing Digital twins IoT/IIoT

112、 Robotics Hydrogen Gigafactories Electrification Smart grids Bioeconomy Carbon capture,utilization,and storage26Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsBased on these building blocks,we identified three cohorts by their sustaina

113、bility maturity:1.Frontrunners:better progression along the three dimensions 2.Experimenters:low maturity in either one or two of the above three dimensions 3.Beginners:low maturity along the three dimensions.Our framework includes nearly 80 statements to assess the maturity of the organizations acr

114、oss the three building blocks.Please refer to the full list of statements in the appendix.Significant progress across all three dimensions makes these organizations frontrunners.In 2022,only about one in ten organizations(11%)in our survey is categorized as a sustainability frontrunner.In our curren

115、t research,this has decreased to 8%(see Figure 11).Please note that overall,organizations have improved their scores across all metrics analyzed this year compared to last year;however,within the 2023 sample of organizations,the distribution has shifted.Source:Capgemini Research Institute,Sustainabi

116、lity Transformation Trends Survey,AugustSeptember 2022,N=2,004 executives,N=668 organizations;AugustSeptember 2023,N=2,001 executives,N=668 organizations.FIGURE 11.In 2023,beginners constitute a higher share of organizations DISTRIBUTION OF ORGANIZATIONS ALONG THE SUSTAINABILITY MATURITY FRAMEWORKSe

117、ptember 2022 September 202311%8%63%58%26%34%BeginnersExperimentersFrontrunners27Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsWe analyzed the financials of the organizations in our current research to divine whether a financial advant

118、age can be said to accrue consistently from improved sustainable performance.As Figure 12 shows,frontrunners outperformed on total revenue per employee and EBIT margin.Frontrunners realized 12%higher revenue per employee compared with the average from 2021 to 2022 and 5%higher EBIT margin compared w

119、ith the average from the same period.This analysis does not imply that sustainability equates directly to profitability.Rather,it highlights that sustainability need not lead to financial disadvantage.It also demonstrates that organizations who are more successful(i.e.,realize higher revenue growth,

120、for example)have greater means to invest in sustainability.DIFFERENCE IN REVENUE PER EMPLOYEE FROM THE AVERAGE ORGANIZATION,BY SUSTAINABILITY MATURITY,202122DIFFERENCE IN EBIT MARGIN FROM THE AVERAGE ORGANIZATION,BY SUSTAINABILITY MATURITY,202122higher than average Frontrunners12%lower than average

121、Beginners12%Experimentershigher than average 6%higher than average Frontrunners5%lower than average Beginners7%3%Experimentershigher than average Source:Capgemini Research Institute financial analysis of 660 organizations(N=52 frontrunners,384 experimenters,and 224 beginners)for FY 202122.Note:The p

122、ercentages indicate the difference in performance for each particular cohort compared with the average for all organizations;eight organizations were removed from the financial analysis because they had outlier data.FIGURE 12.Frontrunners realized higher revenue per employee and EBIT margin28Capgemi

123、ni Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions29Capgemini Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsA World in Balance 2023:Heightened sustainability awareness yet lagging actionsSO

124、CIAL SUSTAINABILITY IS MOVING UP THE CORPORATE AGENDA0330Capgemini Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsSocial sustainability is becoming a key priority for organizations In accordance with the UN Global Compact,we define social sustai

125、nability as the programs,initiatives,practices,and/or processes designed to identify and manage business impacts on employees,workers in the value or supply chains,customers,and local communities.Social issues are a significant aspect of the UNs Social Development Goals(SDGs),for whose achievement b

126、usinesses have a critical role to play.The SDGs cover poverty,hunger,health and wellbeing,education,gender equality,decent work and dignity,inequality,and peace and justice.LAURENCE PESSEZ Global Head of CSR at BNP Paribas“The next wave of being responsible will entail broader action,not only in the

127、 health and environmental sectors,but also on employment,education,and other broader societal issues.”31Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsOver half(56%)of executives say that they are increasingly focusing on the social di

128、mension of ESG(see Figure 13).A similar share(59%)say that their organizations sustainability projects address both environmental and social aspects.One recent study estimates that 96%of S&P 500 organizations publish ESG reports in some form today.23 Executives at organizations with boards who are e

129、ngaged in sustainability are more likely to say they are increasingly focusing on the social dimension of ESG(96%versus 56%on average).Laurence Pessez,Global Head of CSR at BNP Paribas,says:“The next wave of being responsible will entail broader action,not only in the health and environmental sector

130、s,but also on employment,education,and other broader societal issues.”24 Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=2,151 executives,717 organizations.FIGURE 13.Over half of executives globally say their organization is increasingly focused

131、 on social sustainability%OF EXECUTIVES BY COUNTRY WHO AGREE WITH THE STATEMENT:WE ARE INCREASINGLY FOCUSING ON THE SOCIAL DIMENSION OF ESG(SEPTEMBER 2023)56%66%64%63%62%59%57%57%57%50%50%48%47%46%JapanSpainUKItalyGermanySwedenIndiaCanadaFranceAustraliaUSNetherlandsNorwayGlobal59%of executives say t

132、hat their organizations sustainability projects address both environmental and social aspects32Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsOrganizations are putting the most effort into social sustainability initiatives for their ow

133、n workforcesEssentially all executives(99%)say their organization is launching social sustainability initiatives/programs to benefit their workforce.Sixty-five percent are launching programs to benefit local communities.For example,60%of executives say that their organization is training and upskill

134、ing employees on diversity and inclusion,and 51%offer mental health programs to employees(see Figure 14).Aerospace and defense leads on occupational health and safety training(74%).Public sector/government leads on mental-health programs(65%)and recruiting and hiring diverse populations(70%),while i

135、ndustrial manufacturing leads in diversifying its executive committee(66%).Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=1,076 executives in corporate functions.*N=990 executives in corporate functions for the statement.FIGURE 14.67%of executi

136、ves say their organization trains employees on health and safety%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOW(SEPTEMBER 2023)67%63%60%55%51%We offer mental-health programs to employeesWe have diversified our executive committee on genderidentity and/or sexual orientationWe train and upskill our

137、 employees on diversity and inclusion topics*We recruit and hire people of different gender identities,sexual orientations,races,ethnicities,socio-economic backgrounds,and/or abilitiesWe train our employees on occupational health and safety33Capgemini Research Institute 2023A World in Balance 2023:H

138、eightened sustainability awareness yet lagging actionsOrganizations are working to incorporate social sustainability initiatives benefiting their current and future employees.Telecom organization Verizon partners with organizations focused on underserved communities,such as the Society of Women Engi

139、neers and the National Society of Black Engineers,to recruit diverse talent.Verizon also fosters inclusion through ongoing diversity and inclusion(D&I)training and 10 employee resource groups(ERGs),which amplifies diverse voices and supports employee development.Consequently,their US workforce is no

140、w made up of nearly 60%women and people of color.25 Similarly,clothing retailer Gap partnered with labor advocacy groups to promote equality for women in the manufacturing sector.The partnership resulted in improved wages and worker conditions.In participating factories,the pay gap and incidence of

141、sexual harassment decreased by almost 20%,while access to prenatal care and productivity rose by more than 20%.26 34Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsOrganizations are not supporting workers in the supply chain effectively

142、The UN Global Compact asserts that a living wage a wage that enables workers and their families to meet their basic needs is a driving force behind eliminating poverty.The UK-based Living Wage Foundation believes a living wage is crucial to achieving eight of the 17 SDGs;for example,those that focus

143、 on eradicating poverty,raising standards of health and wellbeing,striving for quality education and gender equality,and ensuring economic growth.27Organizations must do more to hold suppliers accountable for upholding the standards they promise.Over half(64%)of executives say their organization con

144、siders the ESG ratings and environmental pledges taken by suppliers during supplier selection.However,only 38%of executives across industries say they only work with suppliers who pay a living wage(see Figure 15).For organizations with tiered-supplier operations,it may be difficult to hold all suppl

145、iers accountable owing to the disparity of legal systems in different geographies.Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=1,076 executives in corporate functions.FIGURE 15.Only 38%of executives globally say their organization restricts s

146、uppliers to those that pay a living wage%OF EXECUTIVES BY INDUSTRY WHO AGREE WITH THE STATEMENT:WE ONLY WORK WITH SUPPLI-ERS WHO PAY A LIVING WAGE(SEPTEMBER 2023)38%46%43%42%41%40%40%38%35%35%34%25%Aerospaceand defenseRetailHealthcare and lifesciencesAutomotiveFinancialservicesConsumer productsmanuf

147、acturing Public/governmentUtilitiesEnergy TelecomIndustrial manufacturingGlobal35Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsThe living wage concept is gaining momentum globally.The EU has been actively discussing the issue of fair

148、wages.Aligned to its“European Pillar of Social Rights”that establishes the principle that EU workers have the right to a fair wage that provides for a decent standard of living,the European Commissions directive on adequate minimum wages was approved and formally adopted in October 2022.Member state

149、s have until November 2024 to align their national wages with the new rules.28 Some US states and cities have implemented minimum wage laws that are higher than federal levels in an effort to establish a living wage,including San Francisco,Los Angles,and New York.29 In the UK,the Living Wage Foundat

150、ion promotes the concept of a living wage and has accredited 14,000 employers who voluntarily pay their employees a living wage.30 However,more corporate efforts are needed.According to a 2022 survey of 1,000 global organizations,only 4%pay their own workers a living wage or have targets to pay them

151、 one.31 There are examples of organizations striving to provide a living wage.Unilever,upon reaching its target to pay all its employees a living wage by 2021,announced its commitment to do the same for all its suppliers by 2030.32 H&M implemented a fair living wage strategy for all its tier-1 suppl

152、iers,covering eight countries and 336 suppliers,by 2019.33 Similarly,cosmetic giant,LOral,having announced implementation of its living-wage policy for its employees in 2020,intends to extend the same to its strategic suppliers by 2030.34Globally,45%of consumers say they expect organizations to ensu

153、re they only work with suppliers who pay a living wage,with millennials most commonly having this expectation(63%)(see Figure 16).By country,the greatest share of consumers in Australia(56%)expects organizations/brands to work with suppliers who pay a living wage,followed by Canada and India(55%each

154、).45%of consumers expect organizations/brands to work with suppliers who pay a living wage36Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsSource:Capgemini Research Institute,Consumer Survey,October 2023,N=6,500 consumers.FIGURE 16.Nea

155、rly half of consumers globally expect suppliers to pay a living wage45%59%63%43%19%Boomers,aged57-73+Gen X,aged41-56Millennials,aged 25-40Gen Z,aged18-24Global%OF CONSUMERS WHO EXPECT ORGANIZATIONS TO ONLY WORK WITH SUPPLIERS WHO PAY A LIVING WAGE,BY COUNTRY45%56%55%55%51%50%46%45%43%41%40%38%35%27%

156、UKSwedenGermanyFranceItalyNorwayJapanSpainNetherlandsUSIndiaCanadaAustraliaGlobal%OF CONSUMERS WHO EXPECT ORGANIZATIONS TO ONLY WORK WITH SUPPLIERS WHO PAY A LIVING WAGE,BY AGE GROUP37Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsAcce

157、ssibility and affordability require more attentionLess than half of executives say their organization is making products/services accessible to people with disabilities,health conditions,impairments,or neurodivergence as well as affordable to their local communities(see Figure 17).Our inclusive desi

158、gn research found that diverse and inclusive tech teams lead to more inclusive tech design.Organizations with advanced inclusive practices are four times more likely to create inclusive products.35Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=

159、990 executives in corporate functions.FIGURE 17.Only 42%of executives say their organization makes products/services accessible to people with disabilities%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOW(SEPTEMBER 2023)42%40%We make our products/services affordable toour local communitiesWe make o

160、ur products/services accessible to peoplewith disabilities/health conditions/impairments38Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsAfter conducting an extensive survey of children aged 612,the Lego Group relaunched its Friends li

161、ne of products with new characters representing diverse cultural backgrounds,physical and mental traits,and complex emotions,including characters with limb differences,anxiety,and neurodivergence.36 Beauty company Lancme recently unveiled an AI-powered make-up applicator called Hapta,which assists p

162、eople with limited arm and hand mobility.Hapta is lightweight,uses sensors and motion-stabilizing technology,and can be used with a variety of make-up products,including lipstick and mascara.37 Based on our recent consumer research,in a difficult economic environment,67%of consumers expect organizat

163、ions to accept lower prices for essential products such as food,medicine,fuel,apparel,and utilities.38 For key industries such as food and beverage,consumer goods,and energy,providing more affordable local pricing schemes will benefit local communities,generating goodwill and social impact.Other imp

164、ortant industries could also follow this model.BookNook,a US-based educational software organization that develops reading and literacy instruction for secondary education,offers an equity-based pricing 67%of consumers expect organizations to accept lower prices for essential products such as food,m

165、edicine,fuel,apparel,and utilities in difficult economic timesscheme to make its licenses more equitable and affordable for schools and districts.The organization provides discounts to schools that serve a high proportion of children eligible for free or discounted meals,a disproportionate number of

166、 whom are from low-income families and communities of color.3939Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsEXECUTIVES DO NOT FULLY GRASP CONSUMER SKEPTICISM Consumers around the world are becoming more wary of greenwashing(the prac

167、tice of overselling or overstating an environmental claim for a product or service).Recent Capgemini research found that this sentiment is more prevalent owing to consumers continual exposure to such messaging as people spend more time online.It also illustrates the potential disconnect between mark

168、eting objectives and impact.In other words,when“green”products do not live up to the hype,buyers feel let down and are more likely to be skeptical about similar products.40 Regulators,too,are becoming more stringent in setting rules and guidance for organizations advertising and marketing environmen

169、tal claims.The EU and the UK have both implemented new or updated regulations to combat greenwashing and protect consumers in 2023.However,executives in our survey do not appear overly concerned with accusations of greenwashing.About half(51%)follow external guidelines on responsible communication a

170、nd advertising to avoid such issues(up from only 49%in 2022).Only 17%believe their organizations top leaders are concerned about the possibility that the public perceives their sustainability initiatives with suspicion.51%of executives say that their organization follows external guidelines on respo

171、nsible communication and advertising to avoid accusations of greenwashing40Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsWe also asked executives how consumers viewed their organizations sustainability initiatives.Less than one-fifth(

172、17%)of executives say they believe consumers perceive their initiatives as greenwashing.This sentiment is most prevalent in the US(35%)and least in Japan(6%).In contrast,when we asked consumers directly how they felt,a third said they believe organizations/brands greenwash their initiatives(see Figu

173、re 18).Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=2,151 executives,667 organizations.Consumer Survey,October 2023,N=6,500 consumers.FIGURE 18.There is a perception gap between executives and consumers on sustainability initiatives%OF EXECUT

174、IVES AND CONSUMERS WHO BELIEVE THE STATEMENTS BELOW%of Gen Z consumers(aged 18-24)who believe that organizations/brandsare greenwashing theirsustainability initiatives%of all consumers who believethat organizations/brands aregreenwashing their sustainabilityinitiatives%of executives who believe that

175、consumers consider theirorganizations sustainability initiativesas greenwashing17%33%50%17%of executives say they believe consumers perceive their initiatives as greenwashing41Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsthat organiz

176、ations/brands are greenwashing,followed by Canada(43%).Consumers in the UK are the least suspicious that organizations/brands Our research reveals that consumers skepticism trends downward with age.By country,India has the greatest share of consumers(45%)who believe%OF CONSUMERS WHO BELIEVE THAT ORG

177、ANIZATIONS/BRANDS ARE GREENWASHING THEIR SUSTAINABILITY INITIATIVES,BY AGE GROUP%OF CONSUMERS WHO BELIEVE THAT ORGANIZATIONS/BRANDS ARE GREENWASHING THEIR SUSTAINABILITY INITIATIVES,BY COUNTRY33%50%45%27%18%Boomers,aged57-73+Gen X,aged41-56Millennials,aged 25-40Gen Z,aged18-24Global33%45%43%37%36%36

178、%36%35%34%32%31%28%24%16%UKSwedenItalyFranceNetherlandsGermanyUSAustraliaJapanNorwaySpainCanadaIndiaGlobal Source:Capgemini Research Institute,Consumer Survey,October 2023,N=6,500 consumers.FIGURE 19.Gen Z consumers are most likely to believe organizations/brands are greenwashing are engaging in gre

179、enwashing,perhaps owing to stringent regulations regarding green claims in those countries(see Figure 19).42Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsFurther,our research reveals that 49%of consumers never,rarely,or only sometimes

180、 trust an environmental claim about a purchase they are considering,rising to 65%among Gen Z consumers(see Figure 20).After recently facing accusations of“virtue signaling”in certain products marketing campaigns,Unilever signaled a change in its strategy by not“force-fitting”purpose to every brand.I

181、nstead,the company will focus on shorter-term impacts in four key pillars:climate,nature,plastics,and livelihoods,and will give brand managers more authority to set metrics and track progress.41,42 Source:Capgemini Research Institute,Consumer Survey,October 2023,N=6,500 consumers.FIGURE 20.65%of Gen

182、 Z consumers say they never,rarely,or only sometimes trust an environmental claim%OF CONSUMERS WHO TRUST AN ENVIRONMENTAL CLAIM ABOUT A PRODUCT THAT THEY WANT TO PURCHASE NEVER,RARELY,OR ONLY SOMETIMES,BY AGE GROUP49%65%51%46%41%Boomers,aged 5773+Gen X,aged 4156Millennials,aged 2540Gen Z,aged 1824Gl

183、obal43Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsGENERATIVE AI HAS PROMISING USE CASES FOR SUSTAINABILITY0444Capgemini Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsDigital te

184、chnologies are key to organizations achieving their climate and social ambitions.In our survey,54%of executives say that their organization uses technology such as AI,automation,or digital twins to achieve their sustainability agenda.According to a report from the International Telecommunications Un

185、ion(ITU,a UN body),digital technology could help reduce global carbon emissions by 17%.43“Only digital technologies move at the speed and scale necessary to achieve the kind of dramatic reduction in emissions that we need to see in the next 10 years,”says Inger Andersen,UNEP Executive Director.44 Wh

186、ile wide-ranging digital technologies can accelerate the transition to a green economy,from automation and IoT to blockchain and digital twins,AI in particular is rapidly gaining momentum in the fight against climate change.AI can make more precise weather predictions,track air quality,and measure t

187、he carbon footprint of products/services or even supply chains,while enabling smarter decision-making and real-time monitoring.45 AI can also be used to improve accessibility for people with disabilities or other impairments.For example,using speech or image recognition,AI technologies can enhance c

188、ommunication,navigation,and interaction for those with hearing,vision,mobility,and other disabilities.Ava,an AI-powered transcription app,provides deaf and hard-of hearing people live captions of any conversations in the periphery.46Further,the implications of utilizing generative AI to achieve sust

189、ainability targets will be far-reaching.For example,generative AI can create countless design prototypes in minutes,reducing waste during the process.Similarly,it can help analyze a buildings design,construction materials,and environmental conditions to generate a detailed energy analysis,identify p

190、otential energy savings,and suggest improvements to meet sustainability standards.47 INGER ANDERSEN UNEP Executive DirectorOnly digital technologies move at the speed and scale necessary to achieve the kind of dramatic reduction in emissions that we need to see in the next 10 years.45Capgemini Resea

191、rch Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsGenerative AI is expected to be a core focus within sustainability strategies Our recent research on generative AI use cases across industries found that nearly all executives(96%)in our survey cited gen

192、erative AI as a hot topic of discussion in their respective boardrooms,making it probably the fastest new technology to garner such high-level interest.48 In our current research,over half(59%)of executives believe that generative AI will play a key role in their organizations sustainability transfo

193、rmation efforts.This trend is consistent across industries,with financial services(67%)showing the highest share of executives saying so(see Figure 21).Our recent research also revealed that organizations have high sustainability expectations of the technology,including a projected 9%reduction in ca

194、rbon footprints at organizational level within the next three years.49Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=2,151 executives,717 organizations.FIGURE 21.59%of executives globally believe generative AI will be central to their sustainab

195、ility efforts%OF EXECUTIVES BY INDUSTRY WHO AGREE WITH THE STATEMENT:GENERATIVE AI WILL PLAY A KEY ROLE IN OUR ORGANIZATIONS SUSTAINABILITY TRANSFORMATION EFFORTS(SEPTEMBER 2023)59%67%62%60%59%59%58%58%57%56%56%52%RetailConsumer productsmanufacturing Aerospace anddefenseAutomotiveTelecomEnergy Healt

196、hcareand life sciencesUtilities Public/governmentIndustrialmanufacturingFinancial services Global46Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsOrganizations have already started incorporating generative AI into their sustainability

197、strategies across operations,sales and marketing,logistics,design,and data.Forecast demand to reduce waste Generative AI models can analyze historical demand patterns,market trends,and external factors to generate demand forecasts,thereby reducing stockouts,waste,and carrying costs.This also helps i

198、n limiting the environmental impact of excess production.50 Optimize logistics to reduce emissions Generative AI algorithms can enable optimization of transportation routes by considering factors such as shipment volume,vessel capacities,product characteristics,and geographical constraints to determ

199、ine the most efficient routes.This would lead to cost,time,and fuel savings and eventually reduce the carbon emissions associated with logistics.51Generate more sustainable design prototypes Airbus uses AI algorithms in its generative design process to develop lighter-weight parts for its aircraft,r

200、esulting in lower fuel consumption and,consequently,lessened environmental impact.The initial design was 45%lighter than the traditional part and is projected to reduce Airbuss annual CO2 emissions by nearly 500,000 metric tonnes(mt)if rolled out across its A320 fleet.52Automate sustainability repor

201、ting Generative AI tools can make corporate social responsibility(CSR)reporting easier for organizations,creating a draft report for teams to check and refine.C3 AI,a US start-up,uses generative AI to unify and store disparate ESG data and automate reporting.53Protect against biodiversity loss Resea

202、rchers from the University of Valencia,the Instituto de Fsica Corpuscular in Spain,and the University of Sussex experimented with generative AI to analyze species coexistence patterns in vegetation patches.Species coexistence is important to biodiversity because it demonstrates“niche complementarity

203、”(how two or more species persist and interact in an environment together).The researchers trained two generative AI systems to create simulated possible patch compositions and evaluate them under increasingly complex theoretical ecological conditions.54Improve accessibility Internet accessibility c

204、an be a major challenge for people with sight problems,especially if a website does not support screen readers(software that allows blind or visually impaired people to read text displayed on screens).Generative AI may be used to improve information access as it could help visually impaired people u

205、nderstand what they are looking at by verbalizing images on a website.In March,powered by OpenAIs GPT-4 language model,mobile app Be My Eyes launched Virtual Volunteer,a digital assistant for people who are blind or who have low vision.Users share images and the assistant answers questions about the

206、 image and provide instantaneous,conversational visual assistance for a wide variety of tasks.55 47Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsSource:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSep

207、tember 2023,N=1,075 executives from value chain functions.FIGURE 22.Over half(57%)of executives globally say their organization has started to mitigate the environmental impact of generative AI%OF EXECUTIVES BY INDUSTRY WHO AGREE WITH THE STATEMENT:WE HAVE TAKEN STEPS TO MITIGATE THE ENVIRONMENTAL I

208、MPACT OF USING GENERATIVE AI MODELS(SEPTEMBER 2023)57%70%65%61%61%59%57%54%53%50%50%48%Consumer productsmanufacturingUtilitiesFinancialservices RetailAutomotiveHealthcare andlife sciencesIndustrialmanufacturingEnergy Public/governmentTelecomAerospace anddefenseGlobalMany organizations have taken act

209、ion against the negative environmental impacts of generative AIThe carbon footprint of generative AI models is massive and extends beyond training.Our previous research reveals that most executives(78%)are aware that generative AI can have a larger carbon footprint than traditional IT programs.56 Cu

210、rrently,the net impact of generative AI on carbon emissions is unquantifiable but,even so,over half of executives(57%)in our current survey say their organization has started to take steps to mitigate the environmental impact of using generative AI models.Even though generative AI is still in its in

211、fancy,the rapid adoption of generative AI technologies by organizations has them moving at pace.Initial mitigation steps could include developing guidelines for responsible use of generative AI,limiting the use of generative AI tools to selected employees/teams,investing in renewable energy,or offse

212、tting its impact through carbon credits,among other mitigation measures.Aerospace and defense takes the lead in this at 70%,closely followed by telecom(65%),while half of executives in financial services,utilities,and consumer products manufacturing say the same(Figure 22).48Capgemini Research Insti

213、tute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions49Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsRECOMMENDATIONS:HOW ORGANIZATIONS CAN ACCELERATE THEIR SUSTAINABILITY TRANSFORMATIONS 0550Capgemin

214、i Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsTo transform effectively requires enterprise-level coordination,functional involvement,and an overhaul of the operating model and business processes.Last years report focused on specific recommend

215、ations and actions for eight C-suite executives in order to lay the groundwork for an enterprise-wide sustainability transformation.The recommendations we shared hold true today:The CEO must make sustainability a business priority The CFO must articulate the business case for sustainability and ensu

216、re it is understood throughout the organization The CMO must implement protocols to avoid greenwashing sustainability credentials The chief design/product officer needs to embed sustainability as a core design principle The chief procurement/supply chain officer needs to work with suppliers to ensur

217、e they achieve sustainability goals The CTO/CIO must strengthen sustainable IT initiatives The COO needs to build the foundation of the sustainable organization Source:Capgemini Research Institute analysis.FIGURE 23.Key actions for sustainable and inclusive transformation010203040506Ensure sustainab

218、ilityis a boardroompriority Embed social sustainability in thebusiness strategy Focus on quantifyingScope 3 emissionsaccurately Embrace circular andinclusive design Close the intention-action gap Explore the potentialof technology toachieve climate goals And,of critical importance,the CHRO needs to

219、staff for sustainability,which requires new skill sets and a new leadership model.Each leader must ensure a solid foundation within their departments and teams and ensure co-ordination between teams.The current research has led us to make some additional recommendations to last years list(see Figure

220、 23).59%of executives say that their board of directors is actively engaged with sustainability strategy51Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsEnsure sustainability is a boardroom priority In the 2022 report,we emphasized the

221、 importance of boards according long-term priority to sustainability.The good news is that most executives in this years survey(59%)agree that their board of directors is actively engaged with sustainability strategy.Our current research reveals that these organizations are likely to have progressed

222、 further on their transformation journeys,with a focus on social sustainability.For example:71%of executives at organizations with engaged boards say they are redesigning their business or operating models to be more sustainable(compared with 57%on average)88%of executives at organizations with enga

223、ged boards say that,by 2040,they will have completely new business models that are more sustainable(versus 53%on average)96%of executives at organizations with engaged boards say they are focusing on the social dimension of ESG(compared with 56%on average)The change in perspective to accept sustaina

224、bility as an investment opportunity should drive consensus between the board and the C-suite.Frontrunners have an edge when it comes to engaged boards and directors and in combining environmental and social sustainability objectives(see Figure 24).Source:Capgemini Research Institute,Sustainability T

225、ransformation Trends Survey,AugustSeptember 2023,N=668 organizations,56 frontrunners,226 beginners.FIGURE 24.Eight in 10 frontrunners have engaged boards and projects addressing environmental and social sustainability%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS BELOW84%46%82%46%My organization takes

226、 on sustainability projects that address bothenvironmental and social aspectsOur board of directors prioritizes sustainability and isactively engaged with our organizations sustainability strategyFrontrunners Beginners52Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainabili

227、ty awareness yet lagging actionsIt is also important to ensure the sustainability business case is well articulated and understood by the board,management team,and employees as well as external audiences such as investors and customers.This research reveals that executives across functions have a gr

228、eater appreciation for,and clarity in,the sustainability business case compared to last year.With more stringent regulations coming into effect(e.g.,EU CSRD)that are changing the operating environment,executives are realizing that their organizations license to operate will depend,in part,on their a

229、bility to report on sustainability data.A clear business case will also help in fulfilling regulators push for“double materiality,”a concept that considers how a companys actions impact society and the environment and how sustainability and climate affect its business.As part of CSRD requirements,or

230、ganizations must conduct a double materiality assessment,which will help them determine which sustainability issues are material and should be included in their reporting.57Embed social sustainability in the business strategy As prioritization of the UN SDGs gains traction and climate and social obj

231、ectives become intertwined,organizations must take care not to overlook the social sustainability agenda.Social objectives should be integrated into strategy with the same level of priority.Organizations must recognize the urgency of developing a social sustainability strategy.A recent study of 2,00

232、0 of the worlds most influential organizations found that only 1%are positioned to meet the UNs 2030 SDGs.58 53Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsTaking the UN Global Compact definition of social sustainability,there are fo

233、ur main audiences that organizations must consider:employees,customers,supply chain workers,and local communities.Our research reveals that organizations are acting most effectively to benefit their own workforces,but that they can do more to support workers in their supply chain and customers in th

234、eir local communities.Organizations can work to update suppliers criteria to include a living wage dimension,and also strive to make products/services more accessible and inclusive to people with disabilities,health conditions,or impairments.Frontrunners are leading in engaging employees in learning

235、 and supporting local communities with education and policy(see Figure 25).Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=668 organizations,56 frontrunners,226 beginners.FIGURE 25.Frontrunners have advanced social sustainability actions%OF EXEC

236、UTIVES WHO AGREE WITH THE STATEMENTS BELOW84%55%77%73%46%48%We promote public policies that support social sustainability We support education and skills initiatives in ourlocal communitiesEngaging employees in learning and development is a toppriority for our leadershipFrontrunners Beginners54Capge

237、mini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsFocus on quantifying Scope 3 emissions accurately To fully understand their Scope 3 emissions and identify levers for decarbonization,organizations must take a comprehensive view of their suppl

238、y and value chain impacts.Catherine Bals,Sustainability Department Lead at Proximus,a telecom organization,says:“Our major challenge today is addressing our Scope 3 emissions First,we want to encourage external change and action from our suppliers and customers.For our suppliers,this means setting u

239、p a supplier-engagement program and integrating new requirements into our contracts and RFPs requests for proposals,such as the obligation to have SBTi-approved targets.We want to nudge our customers to repair more and reduce frequency of renewal.We want to make them aware of the impact of their equ

240、ipment and lifestyle choices on the climate.”59 Frontrunners have an edge in terms of employees understanding the environmental impacts of their business and measuring Scope 3 emissions(see Figure 26).Organizations can take a data-centered approach and focus first on:Identifying Scope 3 hotspots foc

241、using on critical data and measurements;Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,AugustSeptember 2023,N=668 organizations,56 frontrunners,226 beginners.FIGURE 26.Seven in 10 frontrunners are tracking Scope 3 emissions%OF EXECUTIVES WHO AGREE WITH THE STATEMENTS

242、 BELOW96%66%71%40%We are able to measure and collect data on all ourScope 3 emissionsEmployees understand how our business impacts theenvironment along the value chainFrontrunners Beginners Establishing a shared,single source of emissions data that centralizes the storage and collection of Scope 3 d

243、ata;and Equipping teams with skills and tools to understand and use Scope 3 emissions data in business decisions.55Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsEmbrace circular and inclusive design In the 2022 report,we stressed the

244、importance of embedding sustainability as a core design principle.This years research reveals limited or declining movement on key parameters within product design.Certain measures have advanced since last year,such as removing fossil-fuel feedstock sources and reducing use of virgin timber.In the b

245、roader concepts of embedding circularity in strategy,performing life-cycle assessment,and designing products with longer life cycles,we have seen stagnation or even decline.Organizations must think beyond isolated design problems and consider their design processes as a whole,mitigating points of so

246、cial and environmental impact through the entire product life cycle.Organizations must embrace circular principles in their business models to reduce waste,extend the lifespan of their products,and appeal to sustainability-conscious consumers.Dr.Caroline Cassignol,Senior Key Expert Research Scientis

247、t at Siemens Technology,emphasizes the need for a mindset shift in product design and development:“We grew up in a world dominated by the linear economy.Now,we need to shift to a circular economy mindset.We must question everything we do.”60 It is also critical that organizations embrace inclusive d

248、esign within product development and ensure design teams have diverse representation,so they are well-positioned to build inclusive products.Close the intention-action gap In order to justify their environmental and social claims,organizations must close the gap between stated goals and concrete act

249、ions.There is a real risk of accusations of greenwashing.It can affect the bottom line,derail public confidence,and risk huge fines from regulators.In our current research,one third of consumers suspect that organizations/brands are greenwashing their sustainability initiatives and 48%never,rarely,o

250、r only sometimes trust environmental claims about potential purchases.A Harvard Business Review study found that perceptions of greenwashing not only damage an organizations reputation,but also negatively impact how customers experience its products or services.The research estimates that organizati

251、ons which stakeholders perceive to be greenwashing suffer,on average,a 1.34%drop in their American Customer Satisfaction Index(ACSI)score,triggering accusations of corporate hypocrisy.61 56Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging action

252、sExplore the potential of technology to achieve climate goals Our research reveals that the majority(59%)of executives believe that generative AI will play a key role in their organizations sustainability transformation efforts.While it is still too early to fully quantify its benefits some use case

253、s already exist.For example,generative AI for sustainability can result in design and operational efficiencies,leading to reduced emissions.However,it will be important that organizations continue to mitigate the negative environmental impacts of training and deploying generative AI models as their

254、use becomes more widespread.Organizations should also explore how generative AI can improve the accessibility and inclusivity of products and services.This requires that individuals with disabilities or other impairments play an active role in shaping the technologys role within the organization.In

255、addition,climate technologies defined as technologies specifically designed to tackle environmental challenges including climate change,resource depletion,and biodiversity loss and mitigate their impact will be critical to achieving ambitions.Examples of climate tech include renewable energy,carbon

256、storage,biofuels,low-carbon hydrogen,and synthetic biology,among others.These innovative technologies will drive a significant portion of organizations reduction in emissions,and investing in climate tech will be as essential to reaching net zero and other climate goals as investing in new business

257、and operating models.59%of executives believe that generative AI will play a key role in their organizations sustainability transformation efforts57Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsOur research reveals that growing number

258、s of organizations across industries understand the importance of sustainability,are clear on the business case,and acknowledge the benefits of incorporating sustainable practices and processes into their businesses.This rapid improvement in sentiment in one years time is significant;however,in 2023

259、,translation of this understanding into increased investment lags.While more organizations are setting goals and priorities,they must step up their actions on Scope 3 emissions,sustainable product design,and reporting and disclosing sustainability data while at the same time maintain their increasin

260、g focus on social sustainability.This is a pivotal time in the battle against climate change,the scarcity of vital resources,and the alarming loss Conclusionof biodiversity.It is also now critical to promote equity and social justice,health and wellbeing,and economic stability as pillars of social s

261、ustainability and sustainable development.The role of organizations in curbing the detrimental impacts of industrial and human activity on our planet is paramount.There is a pressing need for more daring and expansive sustainability implementation.Becoming a truly sustainable enterprise necessitates

262、 enterprise-wide transformation,with a keen focus on evaluating the entire value chain through a sustainability lens.Frontrunners have gained an advantage,but others can emulate them to expedite their journeys towards sustainability.58Capgemini Research Institute 2023A world in balance 2023:Heighten

263、ed sustainability awareness yet lagging actionsResearch methodologyWe surveyed 2,151 executives employed at 718 organizations,each with more than$1 billion in annual revenue,across 13 countries in North America,Europe,and Asia-Pacific and in 11 industries.Executives surveyed were director level and

264、above and 50%were from corporate functions,such as strategy,sustainability,sales,and marketing;50%were from value chain functions,such as product design,R&D,procurement,and logistics.We surveyed three executives from every organization.The global survey took place in August and September 2023.The di

265、stribution of executives and their organizations is provided in the following figures.We also conducted a global survey of 6,500 consumers over the age of 18 across the 13 countries.The study findings reflect the views of the respondents to our online questionnaire for this research and are aimed at

266、 providing directional guidance.Please contact one of the Capgemini experts listed at the end of the report to discuss specific implications.*Note that,for any chart that compares 2022 and 2023 data,the sample excludes respondents from Norway,as they did not partake in the 2022 survey;hence,in these

267、 analyses,N=2,001 respondents and 668 organizations.47%48%20%20%15%15%18%17%September 2022 September 2023$20 bn+$10 bn$20 bn$5 bn$10 bn$1 bn$5 bn%OF EXECUTIVES BY ORGANIZATION ENTERPRISE-LEVEL REVENUE,IN USD59Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awarenes

268、s yet lagging actions%OF EXECUTIVES BY JOB TITLE%OF EXECUTIVES BY LOCATION OF HEADQUARTERS OF CURRENT ORGANIZATION60%61%37%37%2%2%September 2022 September 2023ExecutiveVice PresidentDirectorSeptember 2022 September 20239%9%9%8%9%8%9%8%9%9%9%8%8%8%8%8%8%8%7%7%7%7%7%7%7%USUKSwedenSpainNorwayNetherland

269、sJapanItalyIndiaGermanyFranceCanadaAustralia60Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions%OF EXECUTIVES BY INDUSTRY OF CURRENT ORGANIZATION%OF EXECUTIVES BY DEPARTMENT/FUNCTIONSeptember 2023 September 20227%8%8%8%12%11%9%9%10%9%8%9

270、%12%11%9%9%10%10%8%9%7%8%Aerospace and defenseAutomotiveConsumer productsmanufacturingEnergy Financial servicesHealthcare and life sciencesIndustrial manufacturingPublic/governmentRetailTelecomUtilities September 2023 September 2022Corporate strategy/strategicplanningSustainabilityFinance and accoun

271、tingSales and marketingITHuman resourcesInnovation/R&DProduct design/developmentOperationsSourcing and procurementSupply chain and logisticsManufacturing and production7%8%10%9%7%8%11%9%7%7%9%8%5%9%11%9%9%9%10%8%11%9%10%Source:Capgemini Research Institute,Sustainability Transformation Trends Survey,

272、AugustSeptember 2022,N=2,004 executives,668 organizations;AugustSeptember 2023,N=2,151 executives,718 organizations.*Utilities includes electric utilities,gas utilities,water utilities,and waste management;Energy includes oil and gas,alternative/renewable energy,and energy services;Consumer products

273、 manufacturing includes apparel,footwear,household,and personal care;and Financial services includes retail banking and insurance.61Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions%OF CONSUMERS BY AGE GROUP%OF CONSUMERS BY GENDER IDENTI

274、TY%OF CONSUMERS BY COUNTRY OF RESIDENCE15%29%30%26%September 2023Boomers,aged 57-73+Gen X,aged 41-56Millennials,aged 25-40Gen Z,aged 18-2449%51%September 2023Man Woman8%8%8%8%8%8%8%8%8%8%8%8%8%September 2023USUKSwedenSpainNorwayNetherlandsJapanItalyIndiaGermanyFranceCanadaAustraliaSource:Capgemini R

275、esearch Institute,Consumer Survey,October 2023,N=6,500 consumers.62Capgemini Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsAppendixStatements used to evaluate the sustainability maturity of organizations in our survey.Top leadership shares a co

276、mmon vision of how the business needs to change to become sustainableThe sustainability vision is well integrated into the core strategy of the organizationWe have defined a corporate purpose that extends to the environment(i.e.,purpose meaning a reason for being beyond profit)Sustainability aspects

277、 are considered in corporate decisions across the companyWe have a clearly defined priority list of sustainability initiatives to be implemented in the next three yearsSustainability is part of each of our C-suite executives agendaWe are redesigning our business/operating model,so they are more sust

278、ainableWe have a strategy to transition to renewable energy for all sources(i.e.,a switch from conventional to renewable energy for electricity,fuel,heating)Circularity(i.e.,a product is created with its own end-of-life considered;once the user is finished with the product,it goes back into the supp

279、ly chain instead of the landfill)is a key component of our sustainability strategyWe have internal governance policies and procedures relating to environmental sustainability Upskilling/reskilling on hard sustainability skills(e.g.,renewable energy,carbon accounting,environmental science/engineering

280、,data analysis/visualization)is a top priority for our company Upskilling/reskilling on soft sustainability skills(e.g.,leadership,innovation,communications,design thinking)is a top priority for our company AXISPILLARSTATEMENTCorporate functions Vision and leadershipCorporate functions Talent63Capge

281、mini Research Institute 2023A world in balance 2023:Heightened sustainability awareness yet lagging actionsA World in Balance 2023:Heightened sustainability awareness yet lagging actionsAXISPILLARSTATEMENTCorporate functions TalentWe actively recruit and hire new talent with strong sustainability sk

282、illsWe train our employees to adopt sustainable practices in-officeWe equip our employees with tools to support their low-carbon transition(e.g.,giving reusable water bottles to reduce single-use plastic,utilities tracker for carbon footprint)We train employees on the importance of sustaining the en

283、vironment Employees have sustainability KPIs that they are evaluated against as part of performance management Leaders have sustainability KPIs that they are evaluated against as part of performance management We have employees with eco-design and sustainable design skills Corporate functions Cultur

284、eWe encourage research and experimentation to develop new initiatives for sustainabilityWe provide autonomy to employees to develop new solutions to sustainability challengesWe actively collaborate with interested stakeholders,including customers,investors,academia,and governments,to develop and pro

285、mote sustainable approachesOur leaders are focused on profit at the expense of our environmental footprintAll our sustainability reporting and claims are backed by robust audited dataCorporate functions ITWe use a green cloud architecture for our data centers(which reduces data center power consumpt

286、ion)We eco-design our IT applications(i.e.,designing for the lowest environmental impact,such as using sleep modes on laptops)We identify energy-intensive applications and take steps to improve their energy performanceWe have green policies for IT hardware and services procurement(e.g.,environmental

287、 disclosure for IT vendors)We include a carbon emissions assessment when allocating IT spendOur organization has a sustainable IT strategy and roadmapCorporate functions Finance and accountingWe include an assessment of environmental externalities when evaluating projects to fund(e.g.,pollution that

288、 might be caused by the project that diminishes property values or health of people in the surrounding area)64Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsAXISPILLARSTATEMENTCorporate functions Finance and accountingWe report our sus

289、tainability impacts(e.g.,water usage,GHG emissions,hazardous waste produced),along with our financial performance,on a quarterly/annual basisWe have assets invested in ESG portfolios(i.e.,funds that incorporate screening criteria for environmental,social,and governance issues,or invest in socially r

290、esponsible companies)We have made fossil fuel divestment pledges(i.e.,accelerating the adoption of the renewable energy transition through the stigmatization of fossil fuel companies)We invest in carbon offsets(such as purchase of credits or increase in carbon storage through tree planting,land rest

291、oration etc.)to balance out our carbon emissionsCorporate functions Sales and marketingWe educate customers about the importance of adopting sustainable practicesWe offer competitive pricing to encourage more people to consume/purchase sustainable products/servicesWe communicate a carbon footprint f

292、or every product/service we sellWe consider environmental sustainability when designing our branding and marketing campaigns(e.g.,fewer physical events)Value chain functionsTechnologyWe measure the environmental impact of technologies before using themWe use technology to minimize landfill usage eff

293、iciently(e.g.,smart waste management for tracking/sorting,using robots for recycling,using AI/ML to reduce waste)We use technology such as AI,automation,or digital twins to achieve our sustainability agendaWe are using IoT/IIoT to monitor/reduce energy consumption We use 3D printing to produce less

294、waste and save fuel required for transport We use digital technologies(e.g.,AR/VR,collaboration tools)to reduce travel needs of employees We use blockchain/smart contracts to make our supply chain more sustainableWe use tools such as supply chain control towers for monitoring and measuring our ESG m

295、etricsWe use AI/ML to optimize data center utilizationSustainability-related data is available and shared across the entire organization(e.g.,functions,business units,employees,managers)65Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actions

296、AXISPILLARSTATEMENTValue chain functionsTechnologySustainability-related data is available to interested stakeholders external to the organization(e.g.,investors,activists,governments,consumers)Value chain functionsSourcingWe consider the ESG ratings and environmental pledges taken by suppliers duri

297、ng supplier selectionWe are working with our tier-1 suppliers to identify measures for reducing their carbon emissionsWe are working with our tier-2 and tier-3 suppliers to identify measures for reducing their carbon emissionsWe use suppliers who have validated SBTI targets to procure raw materialsW

298、e are working towards reducing deforestation in our supply chain Value chain functionsInnovation/R&D/product designWe are designing products so they can serve their originally intended functions longerWe use AI/data analytics to aid in the discovery of optimal raw materialsWe follow sustainable prot

299、otyping and testing processes(e.g.,use of additive manufacturing or 3D printing)We are redesigning products to remove fossil fuel feedstock sources(such as coal)We are redesigning products to have a lower impact on forests(e.g.,using less wood so fewer trees are cut down)We are building solutions to

300、 reduce the environmental footprint of our end users/customersWe perform LCA(life cycle assessment)on all of our products/services Value chain functionsManufacturingWe are minimizing over-production and wastage in production We are shifting our manufacturing footprint to places/locales with low carb

301、on alternativesWe are redesigning processes,so they consume less energy(e.g.,improving process heating in the production process,powering down equipment at the end of the day)We measure the energy consumption of our industrial processesWe use responsible recyclers who do not export our e-waste to de

302、veloping countries or improperly dispose of itWe are reducing food waste in our operations(e.g.,by improving accuracy of forecasting,providing clearer expiration dates)We have implemented a water stewardship program(i.e.,using water in a way that is socially equitable,environmentally sustainable,and

303、 economically beneficial)66Capgemini Research Institute 2023A World in Balance 2023:Heightened sustainability awareness yet lagging actionsAXISPILLARSTATEMENTValue chain functionsManufacturingWe actively work to recover waste(i.e.,using waste as an input material to create useful products as new out

304、puts)We take back end-of-life products from customers to use them in the remanufacturing process/upcycle Recycling products is a core aspect of our manufacturing strategyWe monitor the conversion of natural ecosystems(i.e.,changes owing to deforestation)on our owned/managed landsWe invest in conserv

305、ing natural habitats(such as rainforests)We are adopting plant-based food in our operations(e.g.,offering only vegetarian meals/snacks in office,promoting plant-based diets to employees/customers)Value chain functionsLogistics-We use analytics for optimizing logistics to reduce travel and associated

306、 emissionsWe have adopted eco-friendly transportation strategies to reduce emissions(e.g.,use of low-carbon fuels,electric vehicles,replacing old fleets with more energy-efficient ones)We have dedicated reporting from our transportation suppliers on the carbon impact of their servicesTech accelerato

307、rsThe extent to which organizations have implemented the following in their sustainability strategy and practices:AI/machine learningAutomationAR/VRCollaboration tools3D printingDigital twinsIoT/IIoTRoboticsHydrogenGigafactoriesElectrificationSmart gridsBioeconomyCarbon capture,utilization,and stora

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