Is climate action financially sustainable? For many businesses in a new global survey, it’s proving to be profitable, and most executives plan to increase sustainability investments over the next five years.
Companies leading in decarbonisation are already seeing revenue growth and operational savings, a global survey from Boston Consulting Group (BCG) found. Executives credited decarbonisation efforts for accelerating revenue growth because of increased demand for sustainable products (23%) and the means to set higher prices for those products (20%). They also affirmed cost-cutting benefits from operational (22%), capital (21%), and carbon tax savings (14%).
More than 80% of companies reported financial benefits from decarbonisation efforts, the survey showed. Those experiencing significant gains (6%) declared a combined net benefit of $221 million and attributed advanced digital tools as key to capturing considerable value.
“A small group of companies have cracked the code on sustainability,” BCG said. “They’re not treating climate as compliance. They’re using it as a growth and resilience engine.”
Organisations that use multiple advanced digital tools were two times as likely to reap higher rewards, according to BCG’s findings. Leading corporations are also prioritising artificial intelligence use cases that include carbon accounting and climate risk modelling.
BCG’s global survey incorporates the views of nearly 2,000 executives responsible for their company’s carbon emissions measurement, reporting, and reduction initiatives.
Despite climate risks, external reporting is on the back burner for organisations. Thirteen per cent of companies have set carbon emission reduction targets in 2025. Overall, BCG’s data indicates that the number of companies setting reduction targets has dropped by 6 percentage points over the past two years (from 19% to 13%). In addition, the portion of companies comprehensively reporting all carbon emissions dropped to 7% this year, a 2-percentage-point decrease from 2024.
Despite stalls across external reporting, momentum is on the rise as leaders look for ways to drive value and tap into new markets, the survey added. More than two-thirds of executives plan to continue investments into mitigation and adaptation solutions, and 61% expect to increase sustainability investments by 16% on average ($69 million per company) over the next five years.
Organisations that have assessed physical risks, such as severe weather, and transitional risks, such as policy shifts, estimated an average $790 million in exposure related to those risks by 2030.
“Companies face [a] high amount of risk from climate change and can reap benefits through smart investments in adaptation and resilience,” the survey said.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
