Global organizations are increasing their efforts to achieve their sustainability goals, despite facing a number of challenges, according to the latest report from the Capgemini Research Institute.

Surveying more than 2,100 global executives in 13 countries, the report found that a majority (84 percent) believe their organization is on track to meet carbon targets. In addition, two-thirds are repurposing products to remove raw materials from fossil fuels, and about 70 percent have implemented water management programs.

Key areas of improvement over the past few years include sustainable design, biodiversity and circularity, with the firm’s Sustainability Maturity Index revealing a 22 percentage point increase in firm adoption of sustainable practices and initiatives from 2022 to 2024.

Australia has made the most consistent year-on-year progress, she said, with a 6 percentage point increase in 2023. and a 14 percentage point increase in 2024.

“This year's report shows that sustainability projects continue to gain momentum in 2024. despite the current headwinds,” said Cyril Garcia, Head of Global Sustainability Services at Capgemini.

“Business leaders have the power and responsibility to steer us toward a more sustainable economy. Water management, biodiversity conservation and circular practices are now established as key business imperatives.”

Capgemini also sees new climate technology innovations and regulations further strengthening sustainability efforts, Garcia added.

The report highlights that more than 65 percent of executives recognize climate technologies such as industrial carbon capture, electrification and low-carbon hydrogen as "crucial" to reducing greenhouse gas emissions and meeting their targets. They also recognize the importance of data and digital technologies in accelerating the adoption of climate technologies.

However, as the report points out, these advantages must be weighed against high costs, skills shortages and regulatory uncertainty.

It also revealed that geopolitical risk has impacted on sustainability initiatives, with concerns about supply chain disruptions and uncertainty around government funding hampering progress.

"Our research reveals that sustainability is geopolitically and politically sensitive," it said.

“There are scenarios where geopolitics can accelerate sustainability; however, our research reveals pessimism among executives about the impact of current geopolitics on sustainability, which could serve as a potential momentum breaker.”

Amid the wars in Ukraine and the Middle East and concerns about U.S.-China relations, about 65 percent of executives say current geopolitical dynamics are slowing investment in sustainability.

What's more, 69 percent say they are concerned about the impact of the uncertain political environment in the US and other regions on their investments and sustainability projects.

Consumer skepticism towards progress in sustainability is also a key factor.

“Our findings reveal that organizations are struggling to convince users of their progress. Despite corporate awareness of greenwashing, consumers are increasingly skeptical and distrustful of its claims,” the report said.

The percentage of consumers who believe companies are greenwashing their sustainability initiatives sees a significant risk, rising from 33 percent to 52 percent in 2024.