gradient line
Climate & Sustainability
/
Survey
/
3 minute read

Climate action is fuelling innovation

According to Deloitte’s new CxO Sustainability Report, Nordic companies remain firmly committed to tackling climate change. Investments in sustainability are increasing, and it’s becoming a key part of strategic decision-making.

article image
key takeaways
1.

8 out of 10 top executives in the Nordic countries predict that climate change will have a high or very high impact on their company’s strategy and operations within the next 3 years.

2.

Nordic companies expect 44% revenue growth from sustainability efforts over the next five years, proving that environmental actions are a smart business move.

3.

However, there are concerns that a strong sustainability stance could alienate customers or employees. 21% cite a lack of sustainable solutions as a key barrier.

2023 marked the hottest year on record globally, intensifying climate concerns across industries. While the future impact of rising temperatures may be uncertain, many business leaders are already taking decisive action, implementing strategies and investments to address these challenges head-on.

Deloitte recently released the CxO Sustainability Report, featuring insights from 131 top executives across Denmark, Finland, Iceland, Norway, and Sweden. The report provides an in-depth look at how Nordic leaders are tackling climate change and driving sustainability. Explore the full report or discover the key takeaways here.

An imparable impact on strategy and operations

92% of Nordic CxOs report being concerned about climate change all or most of the time. This is significantly higher than last year and well above the global average of 76%. This heightened concern is likely driven by direct experiences with climate-related events over the past year. Despite this, Nordic leaders are showing optimism, suggesting a stronger belief in the benefits of adopting more climate-focused strategies to build resilient businesses.

Nearly half (45%) of Nordic executives report that they are transforming their business models to make sustainability central to their strategy, while 85% are developing or planning to develop new climate-friendly products and services, linking sustainability with innovation and future growth. Most encouragingly, 92% of executives see little to no trade-off between business success and climate action. They are confident that their companies can grow while reducing emissions.

Climate investments are already paying off

While long-term strategies may take time to fully realise their profitability, many Nordic leaders are already seeing positive returns from their sustainability efforts. 41% of Nordic executives report that sustainability initiatives are increasing the value of assets, such as intellectual property and operational assets, surpassing the global average of 35%. This highlights how Nordic companies are effectively leveraging sustainability to strengthen their core.

Additionally, 40% of Nordic companies are experiencing improved operating margins as a direct result of these initiatives, and 40% of executives cite increased customer satisfaction and loyalty, demonstrating that clients are responding positively to climate-conscious practices.

It’s clear that businesses are already seeing the benefits of their sustainability efforts. However, despite the strong momentum for climate action, Nordic companies still face challenges. This includes stakeholder pressure, concerns about alienating customers, and a lack of sustainable solutions in the market. Many sectors have already faced the repercussions when sustainability commitments are seen as greenwashing.

These obstacles highlight the need for more comprehensive strategies and greater foresight to overcome these barriers and achieve both business and environmental objectives.

To effectively overcome these barriers, you may want to consider the following:

  • How can we enhance communication with stakeholders to ensure alignment on our sustainability goals?
  • How can we harness emerging technologies to advance sustainability while improving operational efficiencies?
  • Are we equipping our employees with the right tools and incentives to support our sustainability objectives?
  • What strategic partnerships can we build with suppliers, governments, or industry peers to foster sustainability innovation?