Fewer corporate sustainability programs are moving into the implementation stage than a year ago, but interest among executives continues to grow despite concerns of greenwashing, according to a new Google Cloud survey.
Conducted by market research firm The Harris Poll on behalf of Google, the latest Google Cloud Sustainability Survey polled 1,476 VP and C-Suite executives across 16 countries and from a wide range of industries.
The report found that while 90% of the companies have made public commitments to sustainability, only 58% have taken steps to implement programs supporting them. This represented an 8% decline in the number of environmental initiatives that have moved into the implementation phase compared to a similar time in 2022.
According to the survey, the decline is primarily due to a lack of funding, as reported by a significant majority of respondents (78%). In addition, nearly half of those surveyed (45%) stated that current economic headwinds have hindered progress in climate action programs and another 42% cited the energy crisis in Europe as a significant obstacle to their companies’ efforts towards decarbonisation.
While sustainability remains a crucial consideration, the survey results indicate a shift in priorities. For example, ESG initiatives have dropped from their top ranking to the third position compared to last year, suggesting that businesses are facing significant challenges in the current global landscape.
Obstacles in implementation
When asked about obstacles holding back their companies’ environmental programs, the majority (84%) pointed to the need for a better organisational structure, stating their efforts would be more effective if they had “better structure with clear accountability.”
Furthermore, 70% felt that appointing a dedicated executive to lead climate action programs would be the best way to advance sustainability goals.
A common theme that emerged was the need for better technology. Many of the participants referenced the lack of suitable tools as a significant obstacle to promoting corporate sustainability initiatives. They called for more advanced systems that would enable them to monitor and evaluate their environmental efforts more efficiently.
“Executives are eager for better systems to track their progress, with 87% of respondents looking to incorporate better measurement into their organisations to help make more accurate targets,” Justin Keeble, managing director for global sustainability at Google Cloud, wrote. “Measurement is critical. But coupling accurate measurement tools with more ambitious targets is where we believe there is untapped opportunity.”
Customers want sustainability, but leaders fear greenwashing
Google’s sustainability survey also highlighted that customers are becoming more vocal about sustainable brands, with almost nine out of ten (85%) executives noticing the trend within their businesses. As a result, leaders are feeling the urgency to take advantage of change in client, buyer, or investor preferences.
When clarifying the top motivators for increasing sustainable PR, respondents called out commonly cited benefits, such as generating higher revenue, attracting top-tier talent, enhancing brand reputation, and expanding their reach to new customers and clients.
However, this presented a problem as four out of five executives believe that when companies are unable to measure sustainability efforts effectively, they are challenged to communicate authentically about sustainability progress. Instead, overstating their efforts.
Almost three-quarters believe that if investigated thoroughly, most organisations in their industry would be exposed for “greenwashing”, and when questioned about their own companies’ claims, 59% of executives admitted to overstating or inaccurately representing their own sustainability activities.
While for some it may be intentional, most say it is instead often due to setting sustainability goals or pledges without a concrete plan to reach them.
“There are actors that are maybe intentionally overstating what they’re doing, but I honestly think for the most part, companies are sincere—they’ve set their goals, they’re working towards them, but they don’t always have the data to be transparent,” said Kate Brandt, chief sustainability officer at Google.
Despite this, respondents overwhelmingly agree that greenwashing should have harsher consequences (83%) and that sustainability should be more than a PR stunt (88%).
You can download the Google Cloud’s sustainability survey here.
