Paris: The latest research from the Capgemini Research Institute reveals that 82% of organizations plan to increase investment in environmental sustainability within the next 12–18 months, making it a central strategy for long-term competitiveness and resilience.
The fourth edition of the report, “A world in balance 2025: Unlocking resilience and long-term value through environmental action”, highlights a growing recognition among business leaders that sustainability is a critical future-proofing measure.
Investment in Environmental Sustainability Remains a Priority Despite Global Uncertainty
According to the report, three out of four organizations consider sustainability vital for driving innovation and resilience. However, the study also identifies a significant gap between preparedness and execution.
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While compliance with regulations and business value—including profitability, cost savings, and efficiency—remain key drivers, only 21% of companies have developed detailed transition plans with interim targets and dedicated capital allocation.
Internal barriers such as budget limitations, weak data systems, and operational silos continue to slow progress. Externally, nearly two-thirds of executives agree that geopolitical factors are delaying investment in environmental sustainability.
Climate Impacts Outpace Corporate Preparedness
More than seven in ten executives report that their organizations have experienced climate-related disruptions, including supply chain delays, production challenges, and raw material shortages.
Additionally, two-thirds foresee difficulties in managing financial and insurance risks. Despite these risks, only 38% of businesses are upgrading infrastructure, 31% are shifting production to less vulnerable regions, and 26% are redesigning products.
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Investment in Environmental Sustainability: AI’s Dual Role
The report notes that artificial intelligence is increasingly being used to support sustainability goals, with nearly two-thirds of organizations adopting AI-driven approaches. However, concerns are mounting about AI’s environmental footprint, particularly around generative AI. While 57% of executives acknowledge its impact is being debated at board level, fewer than a third have taken concrete steps to mitigate it.
Consumer Trust in Sustainability Claims Weakens
The study also highlights a growing credibility gap between corporations and consumers. Over 62% of consumers now believe companies engage in greenwashing, up significantly from 33% in 2023. Moreover, more than three-quarters expect corporations to take greater responsibility for reducing greenhouse gas emissions.
Affordability and access to transparent sustainability information remain barriers, with only a quarter of consumers finding sustainable products affordable and just 16% feeling sufficiently informed.
Cyril Garcia, Head of Global Sustainability Services and Corporate Responsibility and Group Executive Board Member at Capgemini, emphasized: “With climate risks increasingly high on the corporate agenda, business leaders must adopt pragmatic, operational approaches and implement concrete, financed transition and adaptation measures. This will build resilience while driving innovation and competitiveness.”
