Organizational, structural, and geopolitical barriers to sustainability

Momentum stalls as organizations face geopolitical tensions, budget constraints, and more

Organizational, structural, and geopolitical barriers to sustainability persist

Momentum stalls as organizations face geopolitical tensions, budget constraints, and more

While many organizations are committed to advancing sustainability, organizations are increasingly constrained by a range of internal and external barriers. Following steady gains from 2022 to 2024, our survey showed that sustainability maturity dropped by 12 percentage points in 2025. This is reflected in Capgemini’s sustainability maturity index, which benchmarks organizations’ progress over the past four years across 93 questions in our sustainability framework. With 2022 as our baseline, an index value of 100 indicates that the result matches a baseline average; 200 indicates it’s double the baseline, while 50 indicates it’s half.

Across core sustainability areas – including biodiversity, water stewardship, and circular economy – business initiatives have declined. Only 55% of organizations listed circularity as a key component of their sustainability strategy in 2025, down from 65% in 2024.

Sustainability index by country and sector, 2022–25

Country*	2022 Base	2023 Index	2024 Index	2025 Index	Sector**	2022 Base	2023 Index	2024 Index	2025 Index
Australia	100	106	124	105	Aerospace and defense	100	111	113	116
Canada	100	113	119	114	Automotive	100	116	121	129
France	100	95	114	93	Consumer products manufacturing	100	115	127	112
Germany	100	99	95	101	Energy	100	108	118	101
India	100	124	109	104	Financial services	100	108	138	113
Italy	100	100	148	127	Healthcare and life sciences	100	121	133	100
Japan	100	99	129	123	Industrial manufacturing	100	116	116	104
Netherlands	100	120	142	114	Public/government	100	119	123	100
Spain	100	95	129	131	Retail	100	105	128	110
Sweden	100	119	125	107	Telecom	100	110	115	106
UK	100	111	121	107	Utilities	100	103	108	89
US	100	109	118	120
Global average						100	112	122	111

_{Note: While the chart shows an 11-percentage-point difference between the 2024 and 2025 index, the actual difference is 12pp due to rounding.}
_{Souce: Capgemini Research Institute, Sustainability transformation trends survey, August–September 2022, N = 2,004 executives; August–September 2023, N = 2,001 executives; June–July 2024, N = 1,859 executives; June–July 2025, N = 1,851 executives.}
_{*Norway is excluded as it was not covered in the 2022 research.
**Agriculture and forestry is excluded as it was not covered in the 2022 or 2023 research.}

The question, then, is: What obstacles do organizations face?

Externally, 65% of executives point to geopolitical conditions as slowing sustainability progress. In times of political uncertainty, many organizations prioritize immediate challenges, such as supply chain disruption and operational capacity, putting strategic initiatives like business model redesign on hold. However, geopolitical tensions can also drive sustainability. For example, disruptions such as rising energy prices could prompt organizations to accelerate the shift toward renewable energy, alternative materials and redesigning supply chains. The impacts of geopolitical tensions on sustainability could vary therefore depending on timing from short term delays in sustainability efforts to long term changes including material innovation and reindustrialization.

Besides geopolitics, affordability and availability are hindering adoption of sustainable products, with just 24% of consumers finding sustainable products affordable.

Internally, businesses are struggling with organizational and structural challenges. Budget constraints restrict initiative scaling, while inadequate data and measurement frustrate progress tracking. Siloed operations, cited by 79% of executives, complicate efforts to embed sustainability across departments. Structurally, wide investment gaps persist for climate mitigation and adaptation, with adaptation finance lagging significantly.

However, despite global headwinds, sustainability is becoming more deeply embedded in strategy, operations, and measurement, even as organizations face broader execution challenges.

Close to two-thirds of executives across countries agree that current geopolitics is driving a slowdown in their sustainability investments/projects

^{Source: Capgemini Research Institute, Sustainability transformation trends survey, June-July 2025, N = 2,146 executives; Capgemini Research Institute, Sustainability transformation trends survey, June-July 2024, N = 2,152 executives.}

Anke Ehlers, Managing Director – International Sustainability at ALDI South:

Geopolitical volatility has only reinforced why sustainability must be central. At ALDI South, resilience is a strategic priority: ensuring our supply chains remain robust so our business can withstand shocks. For example, we’ve even entered into 30-year supplier contracts – something unthinkable a few years ago – because securing continuity is securing competitiveness."