Improved perceptions of sustainability are driving action plans and priorities

Data reveals key areas of improvement

Average annual investment in sustainability as % of total revenue, by company size

Despite evolving attitudes, our data did not show a significant increase in green investment. All surveyed businesses had an annual revenue of $1 billion or more, and their average annual sustainability investment increased from 0.91% of total revenue in 2022 to just 0.92% in 2023. As in 2022, we saw a positive correlation between a company’s size and total sustainability spending, but large companies continue to invest smaller percentages of their revenue.

% of executives who agree with the statements

Capgemini’s survey saw limited to no movement in the key areas of product design and development. In 2022, 59% of companies reported the carbon footprint of all products or services, versus 60% in 2023.

We even saw some downward trends: in 2022, 57% of executives said their companies are designing longer-lasting products, versus only 47% in 2023. However, our data also shows that 15% more companies are working to eliminate fossil fuels and decrease the use of virgin timber.

% of executives who agree with the statements below*

Companies continue to struggle with Scope 3 emissions: those produced indirectly by sources in their value and supply chains. Year on year, the same percentage of executives reported that their companies could collect scope-1 and scope-2 emissions data.

However, fewer executives said the same for Scope 3 emissions, down from 60% in 2022 to 51% in 2023. The EU’s CSRD regulation, which came into effect in 2023, comprises stringent standards, including that a company must exhaustively detail its Scope 3 emissions.

Distribution of organizations along the sustainability maturity framework

Sustainability requires widescale collaboration to transform operating models, tools, and perspectives. However, many companies report that this work is taking place in silos. Capgemini examined companies’ sustainability maturity to identify those leading this transition period. Subjects were assessed based on value chain processes, culture, and the adoption of digital technologies.

Difference in revenue per employee from the average organization, by sustainability maturity, 2021‒22

Frontrunners

^12%

^{higher than average}

Experimenters

^6%

^{higher than average}

Beginners

^12%

^{lower than average}

We discovered that the percentage of the most mature organizations declined from 11% in 2022 to a mere 8% in 2023.

At the same time, our research showed that in terms of revenue per employee, these companies perform 12% higher than average, compared to 6% higher for less mature organizations and 12% lower than average for the least mature. These and other statistics demonstrate that embracing sustainability does not put a company at a financial disadvantage.

CXO Corner

For the CEO

Close the intention/action gap

It is imperative that the CEO promote initiatives that close the “intention/action gap” – the discrepancy between ambitious goals and ineffective actions. If this disparity is left unaddressed, it can lead to accusations of greenwashing. Already, Capgemini data indicates that one-third of consumers believe brands may artificially inflate their sustainability credentials, and 49% never, rarely, or sometimes trust environmental information about potential products.

For the CPO

Lead a widescale shift toward circular design

The Chief Product Officer must lead a widescale shift toward circular design. Our 2023 data showed significant stagnation in sustainable product design, despite some gains such as decreased use of virgin timber. However, many groups see their sustainability work as siloed into distinct projects, departments, or countries. Now, they must leverage their collective expertise to address design problems and overarching issues throughout the design process. Adopting circular business models will cut back on waste, extend product lifespan, and gain consumer trust.

For the CSO

Play a key role in tracking scope-3 emissions

The Chief Sustainability Officer has a key role to play in tracking scope-3 emissions. The only way to fully decarbonize is to comprehensively track and reduce emissions not only from core operations but also across the supply and value chains. This could mean working with and supporting suppliers as they work to cut their carbon footprints, for instance by shifting to renewable energies. Capgemini’s research indicates that companies ranked as “mature” in their sustainability journeys have an advantage in terms of measuring scope-3 emissions.

Download the full report

For the CEO

Close the intention/action gap

For the CPO

Lead a widescale shift toward circular design

For the CSO

Play a key role in tracking Scope 3 emissions

The Chief Sustainability Officer has a key role to play in tracking Scope 3 emissions. The only way to fully decarbonize is to comprehensively track and reduce emissions not only from core operations but also across the supply and value chains. This could mean working with and supporting suppliers as they work to cut their carbon footprints, for instance by shifting to renewable energies. Capgemini’s research indicates that companies ranked as “mature” in their sustainability journeys have an advantage in terms of measuring Scope 3 emissions.