8/10 business will fail in low carbon economy without transformation
A major new study has shown large businesses are at risk of collapsing if they attempt net zero transition without adjusting wider models and structures.
Research conducted by Sweep on behalf of Capgemini polled more than 500 sustainability leaders from small, midmarket and enterprise-level companies. Firms were located in the US, UK, France and Germany.
81% of the leaders involved in the study said their organisation would need to transform in order to survive in the low carbon economy. A key starting point is updating the way in which they track their footprint and handle associated data.
According to the results, 78% are still using spreadsheets to measure their emissions, potentially hindering scalability. Almost half – 47% – reported being ‘frustrated’ at the complexity of data they manage and find it hard to make sense of this information.
More worryingly still, 72% of companies included did not track Scope 3 emissions, despite these making up around 70% of the average company’s overall carbon output. Thanks to these shortfalls and outdated approaches to measurement, two thirds of sustainability leaders said they spent at least 10% of their average working week collecting and consolidating emissions data.
Despite this, more than half found emissions information to be insufficient in directing their strategies, and regulatory requirements, rather than ethics and values, were the key driver in making sure processes are up to speed.
‘This study has shown us that organizations in leading economies recognize the need to change,’ said Rachel Delacour, co-founder and CEO of Sweep. ‘But without a proper grasp of their sustainability data, this will never be possible. We aren’t just talking about meeting regulatory requirements, it’s about the very foundations of a business which wants to not only survive but thrive in the low carbon economy.’
‘Achieving climate and social goals goes further than ticking boxes, it involves identifying the right indicators to drive sustainability transformation across the organization,’ added Roshan Gya, CEO of Capgemini Invent and member of Capgemini’s Group Executive Committee. ‘Effective action hinges on precise, actionable data, as granular and verifiable insights are essential for impactful sustainability strategies.’
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Image: Masaaki Komori