As global headwinds slow
momentum, how can weaccelerate climate action?
EY 2023 Sustainable Value Study
Second Annual Study

EY 2023 Sustainable Value Study:

Executive summary
The EY 2023 Sustainable Value Study finds thatcompanies’ progress on sustainability is slowing ata time when climate action needs to accelerate if weare to meet the 1.5-degree goal set out in the Paris
Agreement.
Compared to the 2022 study, the survey results
show progress has slowed:• Reported greenhouse gas (GHG) emissions
reductions has declined from a median of30% to 20%.
• The median target year reported for companies toachieve their climate ambitions has slipped from2036 back to 2050.
• The number of climate change actions thatorganizations reported as complete has also fallenfrom an average of 10 in 2022 to just four, out of a
possible 32 benchmarked in the survey.
External pressures are impacting businesses’ ability
to accelerate sustainability efforts, with only 34% of
those surveyed planning to spend more to address
climate change, down from 61% in 2022.
As gains become harder to make, fewer organizations
are leading the charge on climate action, with only
7% of those surveyed qualify as “pacesetters” —organizations taking the most action on climatechange — compared to 32% in 2022.

Leading organizations are showing that moving
forward on sustainability is still generating value% reporting higher-than-expected value captured

89%

Customer value

56%
87%

Societal value

Planetary value

48%
82%
32%
79%

Employee value

Financial value

51%
79%
45%
Pacesetters

Observers

To segment companies, we created an index based on 32
potential actions to address climate change. The highest
scoring group, pacesetters, completed an average of 14
actions compared to one completed action in the lowest group,observers.

Despite the challenges, our research shows thatcompanies leading on action are creating significant
value for society, their business, and the planet.

About the study
The second annual EY 2023 Sustainable Value Study draws on insights from a global survey of 520 Chief
Sustainability Officers (CSOs) or those with equivalent responsibilities in their organization. Organizations
with these sustainability roles have reached at least a basic level of maturity about addressing climatechange. These results are not representative of all businesses but are focused on those who have begun
their climate journey. In addition, we conducted in-depth interviews with sustainability leaders at sevencompanies across six industries.

Making progress will require far greater collaboration. Our study highlights three key areas foraccelerating progress by:
Empowering CSOs as transformational agents• CSOs are struggling with cross-functional collaboration and a slow
pace of progress.

70%of transformational
CSOs are capturing
higher-than-expectedfinancial value (vs. 47%of other CSOs)

22%

of CSOs think
regulations andreporting requirements
are barriers to theirsustainability initiatives

14%of transformational
CSOs need bettercollaboration with
their chief operation orsupply chain officers(vs. 40% of other CSOs)• This is driving dissatisfaction: four in 10 CSOs are not committed
to staying in their current role​.
• Transformational CSOs — those with the most resources andorganizational influence — are making better progress on
decarbonization, are creating more value and are more satisfied.

Using government policy to drive action across the organization• Few CSOs think regulatory demands are limiting them from being
future-focused and strategic. ​• Preparing for reporting integrates organization-wide issues (e.g.,planning, budgeting, measurement), improving decision-making
and performance.
• Companies operating in a multispeed world can benefit bymoving their business at the pace required by the most regulated
geographies where they operate.
Focusing on scope 3 emissions, enhancing supply chain
collaborations, and embracing technology• Businesses are struggling to know where to start with scope 3emissions reduction.
• Transformational CSOs are emphasizing the supply chain as a key
investment area and are collaborating more with chief operationand supply chain officers.
• 78% of transformational CSOs see the potential fortechnology, particularly AI, to optimize their supply chains andreduce emissions.
The EY 2023 Sustainable Value Study shows sustainability progress is not keeping pace.
Levers to adopt organization-wide, value-led sustainability include:

12

3

4

5

Focus on value
creation

Develop,appoint
and support
a transformationalCSO

Leverage
regulatory andreporting
as tools forimprovement

Commit tocollaboration

Use data andtechnology
to accelerateprogress

Read the full 2023 EY Sustainable Value Study at ey.com/sustainablevalue

EY | Building a better working world
EY exists to build a better working world, helping
to create long-term value for clients, people andsociety and build trust in the capital markets.
Enabled by data and technology, diverse EY
teams in over 150 countries provide trust throughassurance and help clients grow, transformand operate.
Working across assurance, consulting, law,strategy, tax and transactions, EY teams ask better
questions to find new answers for the complex
issues facing our world today.
EY refers to the global organization, and may refer to one or more, ofthe member firms of Ernst & Young Global Limited, each of which isa separate legal entity. Ernst & Young Global Limited, a UK company
limited by guarantee, does not provide services to clients. Information
about how EY collects and uses personal data and a description of therights individuals have under data protection legislation are available
via ey.com/privacy. EY member firms do not practice law whereprohibited by local laws. For more information about our organization,please visit ey.com.
© 2023 EYGM Limited.
All Rights Reserved.
EYG no. 010741-23Gbl
BMC Agency
GA 145124816
ED NoneThis material has been prepared for general informational purposes only and is not intended
to be relied upon as accounting, tax, legal or other professional advice. Please refer to youradvisors for specific advice.