Honeywell has released its 2Q 2023 Environmental Sustainability Index (ESI), a quarterly indicator of key trends, sentiment, and progress on global climate change mitigation and other sustainability initiatives and produced in partnership with The Futurum Group. The ESI surveyed more than 750 business leaders directly involved in their organisation’s environmental sustainability initiatives, at a time when ESG-related regulations and global calls to action are mounting.
The third edition of the ESI revealed that sustainability continues to lead all other corporate initiatives, including digital transformation and market performance, and now by a 19-point gap.
Across all geographies, energy evolution and efficiency are the top sustainability priorities over the coming six months, followed by emissions reduction, pollution prevention, and circularity/recycling initiatives. This trend is aligned with the previous two quarters, but circularity/recycling is showing more growth than any other category, indicating that organisations may take a deeper look at their supply chains and flow of materials to elevate how products, services, or resources are renewed or regenerated, rather than wasted in the second half of 2023.
According to Vimal Kapur, President and Chief Operating Officer, Honeywell, their data shows that companies are maintaining their commitment to sustainability. Despite facing other challenges, sustainability remains a top priority for leaders who are increasingly taking action. This trend is correlated with the adoption of newer and more efficient technologies to support sustainability efforts. Honeywell is ready to offer solutions to support ESG (Environmental, Social, and Governance) goals and assist organisations worldwide in achieving their sustainability targets.
According to Ashish Modi, President, Honeywell India, businesses worldwide are recognizing the importance of sustainability for long-term growth. He stated that sustainability is no longer just an option but a necessity. The Honeywell Environmental Sustainability Index highlights that energy evolution and efficiency will remain the top priority for organisations in the coming months. Honeywell is dedicated to developing innovative technologies that not only drive business growth but also reduce environmental impact. The company is committed to helping its customers achieve their sustainability goals and creating a better world for future generations.
According to Daniel Newman, the Principal Analyst and CEO of The Futurum Group, the shift towards a technology-driven approach for environmental sustainability has been more significant than anticipated in the last three months. The third release of Honeywell’s Environmental Sustainability Index revealed new data indicating an increasing commitment to technology that supports sustainability. Newman also mentioned that the number of organisations opting for a balanced approach has decreased, and those taking a process-driven approach have remained unchanged or decreased. Newman predicts that the trend towards a tech-driven approach will continue as the world moves closer to the 2030 sustainability target.
According to Evan van Hook, the Chief Sustainability Officer of Honeywell, companies are investing in technology to meet their environmental sustainability targets. Honeywell has observed its customers implementing various measures such as using sustainable aviation fuel, reducing carbon emissions from buildings, and adopting advanced circularity solutions like plastics recycling. Evan believes that AI will become even more prevalent, making technology smarter and more efficient, leading to greater positive impact on sustainability efforts.
More key highlights from the study include:
· Many businesses continue on track with their previously-set sustainability commitments towards 2030 and are feeling positive about achieving them. Optimism for achieving those goals across all categories has increased quarter over quarter. Globally, 75 per cent of respondents cited optimism in achieving overall environmental sustainability goals across all categories by 2030.
· Looking at the U.S. specifically, 71 per cent of respondents cited optimism in achieving overall environmental sustainability goals related to emissions reduction by 2030. Moreover, 70 per cent of U.S. respondents reported their organisation is increasing investments to achieve its environmental sustainability goals specifically related to emissions reduction for the coming 12 months.
· When asked about achieving near term goals within the next 12 months, respondents cited confidence in achieving overall environmental sustainability goals with optimism increasing 1 per cent from last quarter to 74 per cent. However, in the U.S. specifically, just 69 per cent of respondents cited optimism in achieving near term goals, down from 74 per cent in the previous quarter. Compared to global survey results, there is a more pessimistic attitude in the U.S. for the next 12 months.
· The Asia Pacific (APAC) region continues to prioritise sustainability goals more than any other region including EMEA, North America, and Latin America. APAC also reports “extreme success” across all four categories: Emissions Reduction, Energy Evolution and Efficiency, Pollution Prevention, and Circularity/Recycling. However, Latin American business leaders are the most optimistic with 84 per cent expressing confidence in their organisations’ ability to achieve ESG goals by 2030.
· Consumer goods reports higher extreme success in pollution prevention, and circularity and recycling than any other sector. In Energy evolution and efficiency, consumer goods and manufacturing, construction, and industrial report the same level of extreme success (60 per cent). For emissions reduction, banking and personal services lead all other sectors.