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Companies Commit to Sustainability, But Concrete Climate Actions Are Insufficient
22 Sep 2025The report titled "A World in Balance 2025: Uncovering Durability and Long-Term Value through Environmental Actions" published by Capgemini Research Institute revealed that companies did not give up on their sustainability targets despite global uncertainties.
The report titled "A World in Balance 2025: Uncovering Resilience and Long-Term Value through Environmental Actions" published by Capgemini Research Institute. Three-quarters of organizations see sustainability as a key strategy for long-term competitiveness, innovation and resilience. However, there is a significant gap between perceived preparedness and actual climate resilience.
Investments are increasing, plans are insufficient
More than 80 percent of organizations plan to invest in environmental sustainability, up 8 points from last year. While regulatory compliance continues to be the main factor driving sustainability steps, business values such as profitability and efficiency also come to the fore. Despite this, two-thirds of executives say they are under pressure to demonstrate reliable, science-based progress. Only 21 percent of companies have detailed transition plans that include interim targets and capital allocation.
Among internal obstacles, budget constraints, inadequacies in data and measurement systems, and operational divisions stand out. Outside, geopolitical uncertainties slow down sustainability investments, according to two-thirds of executives.
Climate impacts are getting worse
The report states that climate disasters and global warming create problems in many areas, from companies' supply chains to production. More than 70 percent of executives report supply chain disruptions and raw material shortages. Increasing difficulties in managing insurance and financial risks also come to the fore.
Although most companies say they prioritize climate adaptation, more than half think they are unprepared for the impacts of climate change. Concrete adaptation steps remain limited: Only 38 percent are renewing their infrastructure, 31 percent are shifting their production activities to less risky regions, and 26 percent are redesigning their products.
"Business leaders urgently need to implement concrete, funded transition and adaptation measures that will not only increase resilience but also fuel innovation and competitiveness," said Cyril Garcia, Head of Global Sustainability Services at Capgemini.
The environmental impact of artificial intelligence is on the agenda
The report emphasizes that artificial intelligence (AI) plays an important role in sustainability strategies, but its own environmental impact is also a matter of debate. While two-thirds of executives state that artificial intelligence is used for sustainability goals, 57 percent say that the environmental impact of generative artificial intelligence (Gen AI) is brought up in their boards of directors. Despite this, only a third of companies are taking steps to reduce this impact. The percentage of executives who believe that the benefits of Gen AI exceed its costs decreased from 67 percent in 2024 to 57 percent in 2025.
Consumer confidence is weakening
Another point that the report draws attention to is the decline in consumer confidence. 62 percent of participants say they believe companies engage in "greenwashing." This rate was at one third in 2023. Three-quarters of consumers think companies should do more to reduce greenhouse gas emissions.
In addition, only 25 percent of consumers find sustainable products affordable, while 16 percent state that they have access to sufficient information about sustainability. This situation once again reveals the importance of transparent and evidence-based communication.
Source: Clean Energy
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