More than six in 10 companies globally (62%) say recent wildfires, floods, and storms during 2023 will have a material impact on their environmental initiatives, according to the fifth edition of Honeywell’s Environmental Sustainability Index (ESI), compiled by Honeywell and The Futurum Group. Another 45% admit the extreme heat will have or has already had a material effect on their near-term plans.
“The extreme weather events this year have increased the sense of urgency for immediate action at organizations,” says Gavin Towler, chief scientist for sustainability and chief sustainability officer at Honeywell. “As a result, we should expect to see more organizations looking to accelerate their sustainability efforts and, in particular, adopting a technology-driven approach to their energy transition plans.”
- Nearly nine in 10 (88%) organizations are planning to increase their budgets for energy evolution and efficiency initiatives.
- Almost three-quarters (73%) of organizations are at least somewhat optimistic about achieving near-term goals, up from 62% a year ago. The energy sector shows the highest level of confidence among the industries covered in the study.
- Nearly one in five organizations are now taking a technology-driven approach to their sustainability initiatives – the highest percentage since the launch of the Index.
- 92% of respondents have an ESG reporting process in place, while 30% say the responsibility resides in the C-suite.
“The data is showing that organizations in the public and private sectors are actively forming frameworks to partake in either policy-driven or investment and technological-oriented action in effort to address the global objectives in environmental sustainability,” adds Daniel Newman, CEO of The Futurum Group.