New Delhi [India], June 6 : Businesses worldwide are being affected by changing weather patterns and climate change. According to a survey by Gartner, 54 per cent of CEOs say their businesses are affected by changing weather patterns, at least moderately.
Over half 51 per cent of CEOs acknowledge that these changing weather patterns are prompting them to plan changes to their operations or have already done so. Approximately 69 per cent of CEOs see sustainability as a leading business growth opportunity in 2024.
The survey highlights that CEOs are leveraging sustainability to drive business growth through various means - 33 per cent through sustainable products and services, 18 per cent through sustainable business practices, 18 per cent through stakeholder engagement, and another 18 per cent through decarbonization. Digital investments and innovation rank ninth at eight per cent.
"As CEOs reset their long-term strategies, environmental sustainability remains one of the leading factors that will frame competition," said Kristin Moyer, Distinguished VP Analyst at Gartner.
"Sustainability consistently remains a top 10 business priority, surpassing even productivity and efficiency this year. Leaders and investors know environmentally cavalier corporate behaviour is a mid-to-long-term risk to business results, with a big price to be paid when environmental factors are ignored as externalities."
According to Gartner, digital technology is crucial in driving both financial and sustainability outcomes. For example, the Internet of Things (IoT) and data analytics can optimize wind turbines, reducing costs and greenhouse gas emissions. AI and IoT can minimize food loss costs and waste, while a circular economy marketplace can generate new revenue and reduce waste.
The Gartner survey revealed that the most significant impact of changing weather patterns cited by CEOs is on operating dynamics (30 per cent), particularly logistics changes such as warehousing, timing, and routing of deliveries. Relocations, including nearshoring, come in second followed by automation, technology, and data.
"Digital technology can accelerate progress toward sustainability goals, going beyond compliance to help enterprises reach targets, enable new business models, and unleash revenue streams," said Moyer.
The survey included over 400 CEOs and other senior business executives from North America, Europe, Asia/Pacific, Latin America, the Middle East, and South Africa, spanning various industries, revenues, and company sizes.
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