Concerns about climate change on the rise in Swiss companies

Coping with the consequences of climate change is one of the biggest challenges for managers worldwide. In Switzerland, almost half of the managers surveyed rated climate change as the most pressing problem - ahead of innovation and the economic outlook. This is according to the latest CxO Sustainability Report - a survey conducted by Deloitte among more than 2,100 corporate executives (CxOs) from 27 countries (including Switzerland) in 2024. For the third time, they were asked about their views on climate change and the measures taken by their companies in this regard.

According to the report, a large majority (82%) of Swiss company leaders expect climate change to have an impact on their company's strategy and operations over the next three years. This is a significant increase compared to the CxO Sustainability Report of 2023. The results of the survey show how this is already having a concrete impact on companies today: in particular, the disclosure and reporting obligations with regard to sustainability in their operations were mentioned, as well as employees' greater awareness of climate issues and the associated demand for more comprehensive information.

More investment in sustainability

Management is therefore aware of the urgency of the issue of sustainability and is responding accordingly. The Swiss companies surveyed increased their investments in sustainability last year, not only compared to 2023, but also significantly more than the global average. Most companies (83%) have increased their investments slightly - only a small percentage (6%) have increased significantly. However, investment is not the only way of tackling climate change: Around half of Swiss CxOs (53%) say they are adapting their company's business model. Sustainability is a central component of the corporate strategy. This is one of the highest values of all countries participating in the survey.

"It is encouraging that companies are taking sustainability seriously and investing more," says Reto Savoia, CEO of Deloitte Switzerland. "We are seeing more and more companies adapting their business model." This is about more than just complying with regulations: "Executives are recognizing the significant business potential of sustainable business, such as using technology as a catalyst to promote climate solutions. This enables them to drive innovation and growth, create new value for their customers and stakeholders and differentiate themselves from the competition."

It should also be emphasized that Swiss companies are now under greater pressure to expand their climate protection measures. This pressure comes primarily from the board of directors and management (70%), banks (68%) and civil society (66%). Compared to last year's survey, a significant increase can be seen here.

Short-term challenges slow down sustainability efforts

Although the pressure is high, there are also a number of hurdles to implementing climate protection measures - and these appear to be different in Switzerland than the global average. The CxOs surveyed cited overcoming short-term business challenges and meeting the expectations of their investors and shareholders as the biggest obstacles. The lack of concrete sustainability solutions and the lack of a member of the Executive Board responsible for sustainability were also mentioned at some distance.

"The results of our latest CxO survey show that the integration of sustainability into business strategy and processes in Switzerland is progressing, albeit not as quickly as desired. This may be due to short-term changes in priorities in light of the current global situation or the complex regulatory landscape. Many companies consider sustainability to be very important, but they are still struggling with the necessary structural changes," says Liza Engel, Chief Sustainability Officer and member of the Executive Board of Deloitte Switzerland.

Source: www.deloitte.com