Table of contents
Executive summary

3

Introduction

8

Five recommendations#1 Boost sustainability investments

9#2 Elevate internal initiatives

15#3 Expand your sphere of influence

20#4 Explore deeper application of technology

28#5 Evolve power structures

32

Final word

37

Authors

39

Methodology

41

Executive summary
As the world grapples with the urgent need to combat climatechange and resource depletion, a new breed of business is emerging.
These organizations will be sustainable to the core—not just green
but deeply green, with sustainability encoded in their DNA.
Sustainability thinking will influence everything these businesses do—
affecting their entire sphere of control—from how they get and use
their energy and materials to how they develop products and services.
Moreover, this type of thinking will impact areas and entities previously
outside of these businesses’ control, including their suppliers,
distributors, customers and partners, in pursuit of a better tomorrow.
What will drive this new breed is a growing conviction thatsustainability can reveal new opportunities for those who respondto environmental, social, business and regulatory pressureswith a radical and far-sighted rethink of how to operate.
Rather than just tending to the sustainability of their internal
operations, deeply green businesses will collaborate in entirely new
ways across their value chains—coordinating their vision, actions
and decisions with other players and partners in their ecosystem.
At the same time, they’ll create products and offerings that go
beyond mitigating environmental issues, to helping to solve them.
Operating in this manner, these businesses will not only shrink theirown environmental footprint and those of their stakeholders—they’ll also discover entirely new ways to secure resilient growth.

Deep Green3

Executive summary
We see glimmers of this future state materializing now: It’s thebeer manufacturer that not only meticulously tracks the journeyof its barley from the field to the bottle using blockchain but also
helps its farmers adopt more sustainable agricultural practices.

and conditions in the production facility. These companies
are leading the charge toward a sustainable future, andthey’re doing it with urgency, purpose and transparency.
But this level of transparency and interconnectedness
requires an expanded understanding of what it means tobe sustainable. In a future-ready business, sustainability ismade possible with the speed, automation and intelligence ofadvanced technologies, modernized ways of operating, andnew collaborative models within and across value chains.
It’s a big lift, but the opportunities are as great as the consequencesof inaction are severe. On the one side are the greenfields that
can arise from productive partnerships and market-changing,planet-saving products and services; on the other side are
disrupted supply chains, dissatisfied consumers and employees,
costly regulatory penalties and negative public perception.
Meanwhile, the ticking of the clock is deafening. With planetary,economic and societal signals growing more apparent every day,business leaders cannot hide in this age of radical visibility.

It’s the fintech that puts its money where its mouthis, offering up to 10% cash back when customers buy
from its socially responsible business partners.
And it’s the apparel company that has built new links between
its supplier, production and retail systems, allowing customers
to see a garment’s manufacturing location, materials used4

Deep GreenExecutive summary
To find out more about the future of sustainability in business, we
worked with Oxford Economics to survey 3,000 executives—acrossevery market and sector—on their sustainability plans, challenges andvision. Through our analysis, we’ve devised five recommendations for
how leading enterprises can outperform their markets with enduring
and differentiating growth by embedding sustainability at their core:1

Boost sustainability investments
to realize full business value

There are two compelling sides to the sustainability coin: aneed to invest on the one side, and financial rewards on theother. Our survey reveals a rapidly accelerating willingness
to spend over the next few years. Between 2020 and 2025,
the percentage of respondents increasing their sustainability
spending by 10% or greater nearly doubles (from 26% to 51%).
By 2030, the percent of respondents grows again, to 62%.
Meanwhile, survey respondents firmly tie financial performance tothe sustainability actions they take. This conviction only grows overtime. The number of respondents who expect their sustainability
efforts to drive stronger financial performance doubles between
now and 2025 (from 31% to 65%). And by 2030, the vast majority(80%) are convinced their sustainability initiatives will positively
or very positively impact their financial performance.

2

While everyone will ultimately needto get more ambitious and expand
their sustainability purview beyond
what’s directly in their control, there’s
substantial work to be done on
improving the sustainability of theirinternal operations. Within the next two
years, according to our research, thepressures of carbon abatement andclimate adaptation will cause a marked
shift toward more sophisticated, datadriven efforts, such as virtual simulations
and advanced analytics. These will
be more disruptive to the operational
status quo than previous efforts.

66%

Of allrespondents
are focusedon thesustainabilityof their internal
operations

Further, as businesses revisit their sustainability strategies, they’ll
also need to improve the granularity, accessibility, reliability andflexibility of the data on which those targets and plans are based.
These are not linear endeavors. In a complex and fluid landscape,strategy must always be regarded as organic. Companies will
have to continuously redefine their baselines, targets and plans as
new regulations, new technologies and new challenges emerge.

Elevate your internal sustainability
initiatives for even greater return

Unsurprisingly, respondents’ sustainability initiatives areprimarily focused on their internal operations—including
what’s commonly referred to as Scope 1 emissions—andless so on the supply chain or the impact of their products
and services once they are sold and consumed.

Deep Green5

Executive summary

3

Expand your sphere of influence,
upstream and downstream, to secure
greater business benefits and impact

Many businesses have yet to focus on sustainability initiatives
outside of their direct control, including Scopes 2 and 3
emissions. Why? Because it’s an enormous undertaking.
Imagine increasing communication and collaboration notjust within your own company but also with your partners,
suppliers, distributors, communities and customers.
To function at a deeply green level, businesses will have to begenuinely connected to their wider ecosystems. They’ll use data andtechnology to acknowledge, address and solve for environmental
challenges up and down the value chain. By leaning into thisopportunity, they will innovate differently. That change will unlock new,revenue-expanding services and open new commercial opportunities,
generate early-warning insights for risk mitigation and management,
and establish new relationships to transform delivery and production.
Expanding your sphere of influence means treating suppliers likepartners and seeing the sustainability journey as a shared one. It alsomeans looking more creatively up and down the value chain to findatypical partners that help you reconceive products and services thatcan be developed, integrated and deployed for sustainable growth.

6

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4

Explore the deeper application of emerging
and maturing technologies, and commerciallycreative ways to deploy them

To expand sustainability initiatives beyond what can be directly
measured, audited and improved, businesses need to boldly explore
technology-driven solutions. In our survey, core technologies suchas cloud, IoT and automation rank highly for both the extent towhich they are deployed and their perceived effectiveness.
Now it’s time to capitalize on technology that, at
first, may not seem relevant in your industry.
Artificial intelligence, machine learning, advanced analytics,
digital twins and blockchain—such cutting-edge technologies arenecessary to expand sustainability into the larger ecosystem andcreate products and services that help solve environmental problems
rather than just mitigate issues. Only the confident adoption of thesetechnologies will accelerate the enterprise’s impact and outcomes.

Executive summary

5

Evolve power structures to allow for necessary
shifts in culture and accountability

Given the organizational challenges noted by respondents,
progress will only happen by getting your internal housein order, from sharpening strategies, to investing in andupskilling talent and preparing the ground for the profoundorganizational change that’s likely to come.

Leadership models are out of balance

55%

Most importantly, leadership models must evolve to correct what our
research reveals as an imbalance between power and accountability.
Respondents report that CEOs usually develop sustainability
strategies and control the funding for these strategies, while the chiefsustainability officer or other senior managers are held accountablefor progress or rewarded for success. This power equation needs to
be balanced if companies are going to achieve expected results.
Further, talent shortages threaten to mar sustainability progress.
Becoming deeply green calls for new talent and skills in the enterprisethat can often be found through reskilling of the existing workforce.
Workforce demographics and dynamics have forever shifted.
Even with charismatic ambassadors and change agents leading
the charge, businesses need to ensure everyone is motivatedto play their part in business sustainability, and for building,sharing and monitoring baselines, targets and plans.

8%
Of respondents say
the CEO is responsible
for allocating budget
for sustainability

Say the CEO isaccountable fordelivering on thesustainability strategy

Deep Green7

Introduction
Sustainability is fast becoming not just a way of doing businessbut a way of being a business. From our research over the last
three years, we’ve concluded successful businesses in the coming
decades will be those that embed sustainability thinking into thevery core of all they do inside and outside the organization, all theway through their value chains and product and service lifecycles.
Deeply green, these businesses will stand out, competitively
and commercially, as sustainability leaders that set the markfor transparency, authenticity and resilience in the face of theplanet’s—and humanity’s—increasingly urgent needs.
For the last two years, our research has tracked how the conceptof sustainability has expanded and intensified. As recently as
2021, we found that senior leaders saw sustainability as notjust a cost on the balance sheet but as a driver for businessgains like increased sales and improved brand reputation.

In our most recent study, we took a closer look at the actions
businesses are taking now or plan to take in the near future, as
well as the challenges holding them back from meeting theirgoals. Our findings reveal what needs to happen—at a strategy,
technology and leadership level—to ensure businesses are readyto expand their sustainability focus into their entire ecosystem. By
doing so, businesses will emerge not only as leaders in their markets
but as beacons for how to be a sustainable business—a deeply
green business—to meet the needs of our changing world.

2021

2022

90%

95%

said sustainability
initiatives would
drive higher sales

said ESG was a
critical part of beinga modern businesssaid sustainability is avital element of theircorporate strategy

70%8In our future-ready business study in 2022, the sustainability
imperative was even more clear. Nearly all executives affirmedthat attending to environmental, social and governance (ESG)
issues is critical to being a modern business. But it also revealed
a gap between sustainability mindsets and actions taken.

Deep Green2023

Deep Green

9

1

Boost sustainability investments
to realize full business value

Our current study reveals an unflagging belief in sustainability as a strategic priority, with nearly
all respondents (95%) saying it is a vital element of their corporate strategy. This nearly unanimous
agreement is not just talk—it’s accompanied by a willingness to spend on sustainability initiatives
that only grows over time (see Figure 1). In fact, between 2020 and 2025, the percentage of
respondents increasing their sustainability spending by 10% or greater nearly doubles, from 26%
of respondents to 51%. By 2030, the percentage of respondents grows again, to 62%.

Figure 1: Spending will rapidly accelerate

Q: Has your company’s average annual spend on environmental sustainabilitychanged over the following periods, and how will it change?

70%
The numberof respondents
increasing
spending by
10% or greater
nearly doubles,from 26% to 51%

60%
50%
40%

20%

20%

10%

15%
6%
2018–2020

2020–2022

10–20% increase
Source: Cognizant Research
Base: 3,000 senior executives
10

43%
39%

30%

0%

And then it
grows again,
to 62%

Deep Green

19%

12%
2022–2025

2025–2030>20% increase#1 Boost sustainability investments
For respondents, investing in sustainability makes good business sense.
In fact, over half (57%) ranked improved business performance as a
top-three driver for sustainability efforts, a close second to their belief
in the moral imperative of doing social good (59%) (see Figure 2).

Figure 2: Sustainability is both a moral and financial imperative
are the three most important drivers
Q: Whatfor your environmental sustainability (percent
naming each as a top-three driver)

59%

37%

Do the right thing
for society andensure economic
sustainability

Reducebusiness risk

57%

37%

Improve businessperformance

Comply with current
or future government,
industry or regulatory
demands

45%

36%

Demonstrate action
to the investmentcommunity

Demonstrate action tocustomers/enhancebrand reputation

Source: Cognizant Research
Base: 3,000 senior executives
Deep Green11

#1 Boost sustainability investments
In fact, respondents seem convinced that sustainability investments
are justified by the financial rewards they will reap over time.
By 2025, 65% of respondents believe their sustainability efforts
will have a positive or very positive impact on their company’s
financial performance—nearly double the number who feel
this way today (34%) (see Figure 3). By 2030, the vast majority(80%) are convinced their sustainability initiatives will positively
or very positively impact their financial performance.

Figure 3: Financial rewards rise sharply
do you anticipate will be the impact of your company’s
Q: Whatefforts to improve environmental sustainability, acrossall business areas, on your financial performance?

100%
80%
60%

Respondents
tyingsustainability
to businessperformancenearly doubles,from 34% to 65%

40%
20%
0%

39%

31%
3%
Today

16%
2025

Source: Cognizant Research
Base: 3,000 senior executives
Deep Green

41%
49%

Positive

12

The number
rises again
to 80%

2030

Very positive

By 2030 the vast
majority areconvinced thatsustainability
initiatives will
positively impact
their businessperformance#1 Boost sustainability investments
The specific areas of business impact are far-ranging, frombrand reputation, to retaining customers and employees, toreducing business risk, with more than half of respondents
naming these and other areas where sustainability will
have a positive or very positive impact (see Figure 4).

Figure 4: An array of business performance impacts
do you estimate the impact of your company’s
Q: Whatsustainability efforts will be on the following
business performance indicators by 2025?

82%

60%

78%

58%

71%

56%

Company/
brand
reputation

Attracting
talent/skills

Customerloyalty

Employeesatisfaction/
retention

The sustainability stage is set: It has captured the hearts, minds andwallets of senior leaders, and even now, businesses are breaking out of
their comfort zones to collaborate with partners, suppliers, distributors
and even competitors to advance the sustainability agenda.
As a result, the business interests surrounding sustainability
have shifted from the “why do it” to the “how to make it happen
effectively,” emphasizing the importance of making informed
decisions, allocating resources and devising effective strategy.
For this reason, and with 2030 goals close at hand, businesses needto develop an ambitious strategy that will propel them into the ranksof the new breed of deep-green sustainability leaders. As one of thesurvey respondents said, “This is not a nice-to-have; this is a must-have,and this is table stakes to even be included in our RFP or a tender.”Business
risk

Share
price

Source: Cognizant Research
Base: 3,000 senior executives
Deep Green13

#1 Boost sustainability investments“

This is not a nice-to-have; this is a must-have, and this istable stakes to even be included in our RFP or a tender.

14

Deep Green

Survey respondent
Senior executive, manufacturing”

Deep Green15

2

Elevate your internal sustainability
initiatives for even greater return

Even now, though, most sustainability initiatives are focused on
the internal operations of the business, including what’s commonlyreferred to as Scope 1 emissions. In all, 66% of respondents arefocused on internal operations—27% to a great extent—comparedwith 59% focused on supply chain and 50% on products andservices (see Figure 5). Further, twice the number of respondents
has yet to start on supply chain and product/service initiatives
vs. internal operations (10% for the former vs. 5% for the latter).

This emphasis on internal operations is completely justifiable
as it stems from the confidence and control businesses canexert in this area. Further, there’s continued and substantial
work to be done on improving the sustainability of their internal
operations. In fact, our research shows that businesses arepoised to build on what they’ve put in place for their internallyfocused strategies and move to higher impact, more dataintensive—and more complex—internally focused endeavors.

Figure 5: The primary focus is on internal operations

Q: To what extent are your environmentally sustainable strategies focused on your company’s operations, supply chain or products/services?
Internal operations

Nearly twice
the number of
respondents are
greatly focusedon internal
operations(27%) vs. supply
chain (13%)
or products/
services (15%)

5%

27%

Products & services

Supply chain
13%

10%

15%

29%
34%
40%
43%

35%

39%
To a very large extent
Source: Cognizant Research
Base: 3,000 senior executives

16

Deep Green

Twice the numberof respondents
have yet to start on
supply chain (10%)
and products/
services initiatives(10%) vs. internal
operations (5%).

10%

To a large extent

To some extent

Not at all

#2 Elevate your internal sustainability initiatives
Consider that today, the number one area for sustainability
initiatives by far is the broad use of digital tools to makeinternal operations more energy-efficient (see Figure 6).

Figure 6: Internal initiatives will growin data and analytics intensity
did you start, or when do you plan to start,
Q: When
implementing the following initiatives related to improving
the sustainability of your internal operations?

Top 3 initiatives
2020–2022
81%

Use digital tools to make
operations more energy-efficient

2025
42%

Move to moresustainable premises

63%

Recycle waste from backoffice operations

42%

Use demand/supply simulations
or virtual models (digital twins)

56%

Generate energy yourself
more sustainably

41%

Use data analytics to ID
process improvement

By 2025, top
sustainability
initiatives
will require agreater level ofdata sharing
and more
sophisticatedanalytics

Source: Cognizant Research
Base: 3,000 senior executives

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#2 Elevate your internal sustainability initiatives
One widely used approach is the deployment of Internet of Things(IoT) sensors to monitor the emissions, water usage and efficiencyof physical assets to meet the business’s sustainability goals.
For instance, sensor-equipped smart factories can generatemassive amounts of data that, through dashboards, offer valuable
insight into waste generated on a production line. Additionally,
climate control sensors connected to IoT networks can supply
information regarding the carbon footprint of heating officespaces. By leveraging the data collected from these sensors,
and utilizing machine learning algorithms to identify areas for
improvement, businesses can gain a clearer understandingof their direct emissions and work toward reducing them.

Deep Green

VirtualDigital twinSens

PhysicalSmart City
Da
t

s
or

a

18

By 2025, however, the top sustainability initiatives will require agreater level of data sharing and more sophisticated analysis. In
addition to moving to more sustainable premises, for example, 42%of respondents plan to create virtual simulations (i.e., digital twins)of their operations and physical assets, which will enable them toexperiment with more sustainable practices without disruption.

ns

a

ly

tio

tic

s

Data exchangeAc

By 2025, thenumber-two
internal operations
initiative will be
the use of virtual
models (i.e.,
digital twins) toexperiment withsustainability
options.

Another widely embraced area is the use of cloud computing tosupport the now entrenched adoption of hybrid work models. A benefitof doing so is the reduction of both commuting-related emissions
and the need for costly and environmentally harmful global travel.

An#2 Elevate your internal sustainability initiatives
The use of digital twins will require advanced use of real-timedata to visualize, model and simulate the operational or physicalenvironment. For instance, businesses could design the mostefficient layout of a production line. Or they could figure out the best
way to ensure the quality of their treated wastewater throughout
their plant operations. By tying in data from the integrated asset
management system, they could use data visualization andanalysis to interpret the data obtained from multiple sensors,
pumps and detectors in the treatment plant and, through predictive
and prescriptive analysis, promote continuous improvement.
Respondents (41%) also want to take the same principles usedin making their physical assets more efficient and apply thoseto their business processes, leveraging process mining to moredeeply understand which processes could be automated to reduce
operational waste or be eliminated altogether. For example, businesses
are using intelligent process automation (IPA) to measure and reduce
the environmental footprint of knowledge workers by streamlining
repeated tasks and gathering additional data, across operations.
The bottom line is, while many companies today have taken the stepof assessing their most critical sustainability issues, they’ve often
underinvested in building the data foundation to understand theirreal impact on these issues and effectively manage them. Rather

than just tracking single impacts, like carbon emissions, they alsoneed to account for impacts on biodiversity, water usage, habitat andother natural resources. This means augmenting their sustainability
strategy with a data strategy that tracks several relevant impacts
and provides dashboards customized to different user groups.
Such dashboards should contain the relevant KPIs and methods tomeasure the most important impacts, and visualize what information
would be most necessary to compel different user groups to act.
Each important decision-maker—whether energy or procurement
manager—should have their own sustainability dashboard to navigate
their actions and move the needle on the impacts they influence.
As data and knowledge advance, businesses will need to continuallyand regularly revisit and reassess their baselines, targets, plans andreporting, as well as improve the granularity, accessibility, reliability
and flexibility of the data on which those targets and plans are based.
Even as these more complex endeavors are unfolding, businesses
also need to turn their attention to the areas outside of their own
four walls. It is essential to use this internal operations work—andparticularly the data foundation—as a platform to broaden the scopeand elevate the sophistication of sustainability initiatives to open
new opportunities and drive a wider and more significant impact.

Use this internal operations work—and particularly the data foundation—as aplatform to broaden the scope and elevate the sophistication of sustainability
initiatives to open new opportunities and drive a wider and more significant impact.

Deep Green

19

20

Deep Green3

Expand your sphere of influence,
upstream and downstream, to secure
greater business benefits and impact

It’s easy to see why fewer respondents are currently engaged
with sustainability initiatives focused on their supply chain,products and services, and Scope 3 emissions. Doingso requires businesses to expand their efforts into areas
that, until now, seemed completely out of reach.
With a solid data and advanced analytics foundation inplace, combined with other increasingly sophisticated andmature technology capabilities, however, they have thetools to break through the walls of their organizations to
see and shape environmental impacts, mitigate risk anddiscover new opportunities throughout the value chain.
Make no mistake, the collaboration, transparency and information
sharing involved will require new, disruptive ways of leading andoperating that may change organization structures and even businessmodels. While this challenge is bound to come with growing pains,
it’s also a golden opportunity for leading organizations to move intoricher and potentially more lucrative relationships with their partners,
suppliers, distributors, communities, competitors and customers.
There are two broad categories of externally focused sustainability
initiatives: upstream and downstream. Downstream activities
encompass the product design itself and what happens when the
product is in the customer’s hands. Upstream initiatives focus on the
intricate and extensive supply chains, logistical operations and partner
ecosystems that form the backbone of contemporary global business.

The collaboration,transparency andinformation sharing
involved will require new,disruptive ways of leading
and operating that may
change organization
structures and evenbusiness models, but it’sa golden opportunity tomove into richer and morelucrative relationships.

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#3 Expand your sphere of influence
In our study, the top three actions respondents are taking today to
improve supply chain sustainability include working to responsibly
source raw materials and components, and selecting supplierscommitted to meeting specific sustainability metrics (see Figure 7).

More than half of respondents (57%) say they’ve already started onthese types of initiatives. But for these activities to be truly effective,
the suppliers themselves would need to be counted on to accurately
monitor, measure and report on their environmental impacts.

Figure 7: Transparency will be key to reaching supply chain sustainability goals
did you start, or when do you plan to start, implementing the following initiatives
Q: Whenrelated to improving the sustainability of your supply chain?

Top 3 initiatives
2020–2022
62%

Deep Green42%

Select suppliers that havea net positive impact
on the environment

57%

Select suppliers that commit tomeeting specific sustainability metrics

41%

Select suppliers that provide
greater transparency ofend-to-end sustainability

57%

Source and buy assets, products,
components and raw materials thatare made from recycled materials

38%

Source and buy assets,
products, components andraw materials that last longer

Source: Cognizant Research
Base: 3,000 senior executives

22

Source and buy assets, products,
components and raw materials
that require less energy  

2025Transparency
will be a top
initiative by 2025
as businesses seek
more scrutiny ofsupplier claims

#3 Expand your sphere of influence“

If there are residual emissions
from actors in your supply chain
or in your own four walls, andyou can’t eliminate them, thenyou have to actively put together
projects that will get you there.
Survey respondent
Senior leader, manufacturing sector”

In other words, these actions don’t take into account the ability to see
what’s behind suppliers’ claims—the actual data-based evidence
that shows how those metrics and conclusions were arrived at. Thatlevel of scrutiny would require full transparency into the supplier’s
environmental impacts, something that isn’t on the top-three list
and that only 38% of respondents are currently engaged in.
This inconsistency could pose a risk for businesses, leaving
them vulnerable to greenwashing claims (whether intended orunintended), embarrassing revelations and potential financial
regulatory penalties. For example, fashion industry supply chainsare notoriously fragmented, with numerous touchpoints frommultiple sourcing materials and locations, multiple manufacturing
stages and a wide range of products whose production requires
many suppliers and sub-suppliers across the world.
This fragmentation creates silos and a lack of a common
data language within the supply chain. Various organizations
follow different data collection processes and different
measurement units that undoubtedly diminish the credibilityof the data. Improving accuracy and transparency will require
data governance and standardization, continual supply chain
monitoring, robust reporting systems, regular stakeholder
engagement and a transparent corporate culture.

Deep Green23

#3 Expand your sphere of influence
By 2025, supplier transparency reaches the number two spot on supply
chain sustainability endeavors. To gain these insights, businesses
will need new levels of cooperation and coordination with their
supply chain partners, and new trusted and secure mechanisms,
such as distributed ledgers (blockchain), for both sharing datadriven insights and metrics and modeling out possible scenarios.

“

Brands owe it to themselves to behonest and transparent and share
their journey. I’ve repeatedly heard
customers and consumers saying,‘We don’t expect you to be perfect;
we expect you to be honest.’
Survey respondent
Senior leader, US manufacturer”

For example, businesses are combining automation with RFID
(radio frequency identification), blockchain technologies andanalytics to track materials and products throughout theirlifecycle, from extraction and production to use and disposal. By
doing so, they can identify opportunities for reusing and recycling
materials and ensure that waste is properly managed.

24

Deep Green

Logistics and transportation is another area where transparent
operations are attainable. Using location technologies,
analytics and AI, businesses can reduce waste by optimizing
delivery routes, reducing the need for packaging andlowering the carbon footprint of transportation.
It’s essential to engage suppliers, distributors and others in
the value chain as partners, collaborating with them andseeing the sustainability journey as a shared one. Forwardlooking businesses will also be open to atypical partnerships
to help them reconceive products and services that they candevelop, integrate and deploy to grow with sustainability.

“

We have started a project tocollaborate with blockchain service
providers, where a blockchain
node will record our CO2 emission
data and energy consumption ina certifiable and secure way.
Survey respondent
Senior leader, Spanish insurer”

#3 Expand your sphere of influence
Downstream activities encompass the product design itself andwhat happens when the product is in the customer’s hands.
Our study indicates a relatively lower degree of activity in thesedownstream activities compared with initiatives focused oninternal operations and upstream endeavors (see Figure 8).

In fact, fewer than half of respondents are engaged in even the
top three downstream activities named: using recycled materials(49%), helping customers save energy (43%) and ensuring a net
positive impact on the environment (39%). Downstream initiatives
are particularly challenging when they involve influencing andcontrolling decisions once “the cat is out of the bag”; that is,when the product or service is in the hands of the customer.

Figure 8: Circular and XaaS models will drive product/service sustainability
did you start, or when do you plan to start, implementing the following initiatives
Q: Whenrelated to improving the sustainability of your products and services?

Top 3 initiatives
2020–2022

2025

Products and services that:

Products and services that:49%

Are made from recycled materials
or are made to be easily recycled

42%

Use design thinking toreimagine products

43%

Help customers save energy
or use renewable sources

41%

Are based on sharing
business models

39%

Have a net positive impact on
the natural environment

40%

Include advice and support toaid consumers in using products
and services more sustainably

The top three
initiatives willlead to new
ways of doing
business withcircular and
XaaS models

Source: Cognizant Research
Base: 3,000 senior executives
Deep Green25

#3 Expand your sphere of influence“

We launched our first sustainabilitylinked loan to help our partners
and other small-scale businesses
grab the opportunity to reduce
their carbon footprint.
Survey respondent
Senior leader, financial services”

Ever increasing regulatory and public scrutiny makes it mandatoryfor executives to take control of downstream impacts. As seen withthe widely publicized video of a few years ago, when researchers
tried to rescue a turtle that had ingested a plastic straw, it’s clearthat it’s the manufacturers and sellers of products that are held
accountable, not the consumers who dispose of the item improperly.
Between now and 2025, the number-one downstream activity will
shift from using recyclable materials in products to completely reimagining product design. This involves exploring innovative solutions,such as new materials and sustainable packaging, to create aclosed-loop system that eliminates waste and reduces environmental
impact. These types of circular business models focus on designingout waste, retaining the use of products and components, andreturning materials to the product lifecycle, thereby building economic,
natural and social capital. For example, waste at one end of a value
chain could be fresh input for another (using worn-out car tires tomake padded floors in a children’s playground, for instance).
In addition, respondents intend to work directly with consumers to
educate, advise and incentivize them on making a positive impact
on the environment. Doing so will require a deeper understandingof how products are being used by outfitting the products
themselves to convey that information. These new insights will,in turn, support new business and operational models such as“everything as a service” (XaaS) and circular business models.

26

Deep Green

#3 Expand your sphere of influence
Because XaaS models enable tracking, measurement and usage
details, they open the door to new commercial models basedon proactive and predictive services that enhance productperformance, extend asset life cycles and enable customer
and supplier collaboration. A lighting maker, for instance,
offers an as-a-service offering through which customers pay
for the lighting product only while they use it. At the end of thecontract, the company reuses and recycles the products. As aresult, customers achieve zero waste, and the company gains
a new channel for service and maintenance revenues.
In both XaaS and circular business models, the expansionof influence establishes sustainable practices throughout
the value chain. Fortunately, the tools necessary forachieving these innovative approaches are moreaccessible than many business leaders may realize.

Generateincreased
incomeCleaner produc
tio
n

s

ter service
Bet

Gree
np
rod
uc
t

Reduceenvironmental
footprint

By 2025, the number-one
downstream activity will becompletely re-imagining
product design.

Sep

Circularbusinessmodels

ara

a

li f
e

w
te

st
e,
re

Minimize
waste

use

C o lle c t

at e

nd

of

Reduceresource
dependency
Deep Green

27

28

Deep Green4

Explore the deeper application of emerging
and maturing technologies, and commerciallycreative ways to deploy them

There’s no doubt that technology is the key to supercharging thesustainability engine behind both internal and external endeavors. It’s
fair to say, in fact, that today’s sustainability needs and opportunities
are arriving just as key technologies such as AI, blockchain anddigital twins are reaching more mature and widespread use. Suchadvanced technologies are integral to both expanding sustainability
into a larger ecosystem and creating products and services that
help solve environmental problems rather than just mitigate issues.
In our study, respondents have implemented a wide range oftechnologies to support their sustainability initiatives (see Figure 9).
Over half of respondents have deployed a core set of technologies—
cloud/edge, IoT, artificial intelligence/machine learning (AI/ML) andbig data analytics—that can now be considered table stakes.

For example, many businesses are migrating to more energyefficient cloud environments and away from on-premises data
centers—which, according to some estimates, account for 2% of
global GHG emissions. It’s not unusual, in fact, to see businesses
reduce the data center footprint by 25% by migrating to cloud. The
leading cloud providers, too, are working to bring their services toclients in increasingly sustainable ways—making the workloads
migrated out of data centers more environmentally friendly.
Another example is the use of analytics technologies—driven
by AI and ML—to correlate the many and various sustainability
variables and get new insights into steering interventions for
maximized benefits and minimized cost. With new tools, it’s not
only CIOs who can understand and use these sophisticatedtechnologies; everyone from product managers to the C-Suite
can focus on system outcomes and not the inputs.

Figure 9: Core technologies are seeing widespread useof the following technologies have you implemented
Q: Which
to improve your environmental sustainability?

Top 6 technologies implemented today

66%#1 Cloud/edge

62%#2 IoT

58%

51%

42%

#3 AI/ML#4 Big data/
analytics#5 IPA/RPA

28%

#6 5G

Source: Cognizant Research
Base: 3,000 senior executives
Deep Green29

#4 Explore deeper application of technology
Even more revealing, however, is a look at which technologies
respondents cite as having been most effective at driving
environmental sustainability (see Figure 10). It’s not surprisingthat five of the six technologies most widely implemented byrespondents were also in the top six most effective technologies.
But the research does reveal two unexpected findings.
One of these stand-out findings is the wide gap between thepercent of respondents using intelligent process automation androbotic process automation (IPA/RPA) (42%) and the percent citing
it as effective or highly effective in advancing their sustainability
strategy (79%). In fact, IPA jumps from the top five mostimplemented technology to the number one in effectiveness.

This is primarily because intelligent automation tools can greatly
enhance internal operations, leading to greater efficiency andthus, sustainability. Further, by leveraging these insights into
internal efficiencies, and applying them to processes upstream anddownstream, businesses can also collect and organize data fromsources that were previously inaccessible or too labor-intensive
to manage. Examples include handwritten documentation fromsuppliers, or the collation of data relating to customer behavior.

Figure 10: Bold tech decisions pay off with high effectiveness scores
effective has each technology you’ve implemented been in improving your environmental sustainability?
Q: How(Percent of respondents naming each as effective or highly effective)

Top 6 most effective technologies today

79%#1 IPA/RPA
IPA jumps fromthe top five mostimplemented
technology to thenumber one in
effectiveness30

Deep Green75%#2 AI/ML73%

72%#3 Blockchain#4 Cloud

While blockchain doesn’t
make it to the top-six
list of technologies
used, 73% of those
who’ve implemented
it are convinced of
its effectiveness70%#5 Remote work
technologies

69%#6 Big data/
analytics

Source: Cognizant Research
Base: 3,000 senior executives

#4 Explore deeper application of technology
A second standout technology is blockchain. With just 26% ofrespondents having implemented this technology, blockchain
doesn’t even make it to the top-six list. However, 73% of those
who’ve implemented it are convinced of its effectiveness, boosting
it to number three of the top six most effective technologies.
A key benefit of blockchain is its public ledger of immutable records.
This highly secure and “trustless” technology provides transparency
between suppliers and customers regarding everything from theorigin of components and ingredients used in products, to theirjourney through the supply chain, all without revealing competitively
sensitive information. Food companies from Bumble Bee Foods to
Nestle use blockchain technology to share information on ethicalsourcing and the environmental impact of producing the end product.

73%
Of those firms that have implemented
blockchain are convinced of its effectivenessThe somewhat low percent of respondents using blockchain could
partly be attributable to its relatively new emergence into theenterprise world and, in some cases, the negative connotations
stemming from its association with “crypto” activities. It’s also
true that some forms of blockchain can be detrimental to theenvironment due to their power usage, but low-power alternatives
have no greater impact on the environment than other technologies
and can be powered by renewable energy sources.

62%
Think more significant tech advances areneeded. But in actuality, the technology
needed for sustainable initiatives is here today

Another technology notable for its usage versus effectivenessgap is digital twins, which are virtual representations ofphysical things, from tech infrastructures to factories.
Although they’re used by just 8% of respondents, 40% ofthem say digital twins are effective or highly effective.
In particular, digital twins hold much promise for supporting
upstream and downstream sustainability initiatives. By creating
them, businesses can test and reconfigure their (real) supply chain
or logistics networks to slash their carbon emissions, redesign theirwater management systems and realize more responsible sourcing
strategies. By developing digital twin ecosystems, businesses andother stakeholders can model the impacts of their decisions onareas of the economy far beyond their immediate value chains.
In our survey, well over half of respondents (62%) believe that yet
more significant technological advancements are needed to achieve
net-zero ambitions. But from what we’re seeing, the technology isalready here—there’s no “magic bullet” solution that’s yet to emerge.
Instead, what’s needed are the bold decisions to moveinto new technology areas that are showing high rates ofeffectiveness now and that can support the more complex
endeavors involved in managing Scope 3 emissions. By doing so,businesses can expand their sphere of influence and promotecollaboration and transparency throughout the value chain.
Deep Green

31

32

Deep Green5

Evolve power structures to allow for necessary
shifts in culture and accountability

Becoming sustainable to the core—deeply green—is a fullcompany endeavor that will impact all levels and areas of thebusiness. Essentially, no aspect of the business will be untouched.
It’s a top, down and sideways undertaking to shift from doing
business more sustainably to being a sustainable business.
It barely needs to be said: Sustainability strategies are only
as effective as the business’s ability to deploy them. Thismeans strategies need to be sufficiently funded and clearlycommunicated. It means everyone in the organization is awareof their role and incentivized to fulfill it. It means investing in theright talent and preparing the ground for the often-profoundorganizational change that will be necessary. And it means thepeople held accountable for achieving strategic sustainability
goals are the ones empowered to make the bold decisions anddisruptive changes needed to achieve expected outcomes.
But that’s not what we’re seeing in our survey data. When we asked
respondents to describe the responsibility and accountability
structures in their organization, the resulting power equation
appears out of balance. For the majority of respondents, it’s the
top of the organization—the CEO—who creates and signs off
on the strategy and allocates budget. As would be expected, theresponsibility for executing the strategy cascades down to thelower levels of the hierarchy, such as the chief sustainability officer(CSO), senior managers and department or functional managers.

Deep Green33

#5 Evolve power structures

Figure 11: New leadership models are needed

Q: How is responsibility and funding for your environmental sustainability strategy spread across your company?
Who allocates budget forthe sustainability strategy?

Who gives approval/sign
off for final strategy?

Who is accountablefor delivering?

Whose performance ismeasured against thestrategy targets?

Chief Executive
Officer

55%

66%

8%

8%

Chief Operating
Officer

16%

16%

11%

12%

Chief Sustainability
Officer/nominatedhead ofsustainability
or equivalent

34%

38%

50%

52%

Collective senior
management
team

20%

19%

51%

56%

Source: Cognizant Research
Base: 3,000 senior executives
34

Deep Green

#5 Evolve power structures
What’s misaligned, however, is who in the organization is held
accountable for their performance in reaching the strategic
sustainability goals. Rather than the strategy creators (usually theCEO) and budget approvers (CEOs and CFOs) taking ownershipfor the strategy’s outcomes, it’s the CSOs and senior managers
whose performance is measured against meeting sustainability
targets. Only in a tiny minority of cases is the strategy creator’s
performance tied to sustainability goals (see Figure 11).
This is not to say that the senior manager and CSO roles should
not be held accountable but that the accountability should be
more evenly shared. This will require leadership models to evolve.
While the power structure is more balanced when it comesto the CSO’s role—with a more even ratio of responsibility
for strategy creation and sign-off and accountability—thebalance still seems misaligned. With 60% of study respondents
seeing an increased demand in their organization for creating
a dedicated CSO role, it stands to reason that the CSO shouldbe empowered with the authority and resources to champion
sustainability initiatives at the same level as their C-suite peers.
With this organizational misalignment, it’s no wonder that, when
asked to name the top challenges of setting and achieving theirsustainability goals, respondents’ top responses were all indicativeof this imbalance of strategy and accountability. The challenges
respondents named include a lack of alignment between different
business units and stakeholders, lack of strategic clarity, and a lackof awareness, skills or broader understanding of sustainability—
all named by over one-third of respondents (see Figure 12).

Figure 12: Revised power structures will solve key challengesof the following internal challenges inhibit progress toward setting
Q: Which
and achieving your environmental sustainability goals the most?

39%

35%

31%

30%

Lack of alignment
between different
business units andstakeholders

Lack of awareness, skills
or broader understandingof sustainability
among staff

Mature technology
solutions suitable for ourbusiness are not available

Inflexible and inefficientbusiness processes

38%

33%

31%

30%

Lack of strategic clarityof environmental
sustainability roadmap

Lack, scarcity or highcost of specialized
talent required to
execute strategy

Specialized technology
required is too expensive

Difficulty collaboratingwith suppliers

Source: Cognizant Research
Base: 3,000 senior executives

Deep Green35

#5 Evolve power structures
Lack of skills—named as a top-three challenge—is emerging
as a particular concern for businesses that aim to lead insustainability. Businesses must first recognize the competencies
needed to build a climate-smart workforce and then maketraining available to every employee on a role-by-role basis.
Good curriculum already exists for basic climate literacy andposition-specific training, so this can readily be done.
The fact is, the entire workforce needs to share responsibility
for realizing sustainability goals. Businesses need to ensure
everyone is aware of sustainability goals and is motivated
to contribute to them. While sustainability ambassadors arevital, it will take a wide array of people in the organization tobuild, share and monitor baselines, targets and plans.
For this reason, incentive systems are key to reward those who fulfill
their responsibility in meeting sustainability targets. In our study, only
32% of the participants reported incentivizing employees at all levels
to improve sustainability in their workplace. However, a significant
71% of the respondents identified incentivization as the most effective
method for promoting a cultural shift towards sustainable practices.
With a structural rebalance of power, a reskilling of theworkforce and employee empowerment, senior leaders will
have the pieces in place to inspire the rest of the business toembody a culture that values incorporating sustainability into
every aspect of operations, partnerships and products.

36

Deep GreenDeep Green37

Final word
The world has awakened to the dire needs of our planet, its resources
and the diverse forms of life that populate it. And for businesses,that means finding a path forward—far beyond “business-asusual”— to an as-yet undefined way of producing goods andservices that meet both economic and environmental needs.
We feel sure that businesses will find that path. Driven by ingenuity,
a collaborative spirit and the courage to change, businessleaders will meet the call for radical transparency, authenticity
and resilience, in tune with the prevailing winds of change.
In the name of sustainability, we will see these businesses put aside
old competitive tropes to form atypical partnerships, creatively deploy
emerging and maturing technologies, and boldly seek commercial
differentiation from their sustainability leadership. The pieces andparts are there—it will be the winners who assemble them.
What you do next as a leader is critical. Whatever path you
take demands humility, open-mindedness, and a willingness
to partner to address the complex and interconnectedchallenges of the day. It won’t be long before the ideas of“sustainability” and “business” become one and the same,as the two become intertwined in a deeply green world.

38

Deep GreenAuthors
Euan Davis

Associate Vice President,
Head of Cognizant Research
Euan Davis leads thought
leadership worldwide at Cognizant.
He determines the strategic
thought leadership themes for thecompany, from shifting customer
dynamics and accelerated
digitization to sustainability andcorporate resilience. He leads ateam of thinkers and writers.
Euan is a sought-after advisor and keynote presenter on issues,
trends and emerging opportunities. He joined Cognizant in 2013 to
set up a think tank called the Center for the Future of Work (Europe).
He now assumes leadership of Cognizant Research globally.

Duncan Roberts

Senior Manager,
Cognizant Research
Duncan Roberts is a Senior
Manager in Cognizant
Research. He joined
the company in 2019 asa digital strategy andtransformation consultant
in industries ranging fromsatellite communications
to educational assessment.
He has advised clientson utilizing technology to meet strategic objectives anddiscover the art of the possible through innovation.

Before joining Cognizant, Euan served as a Principal Analyst
for Forrester Research based in London. He holds a BA degreefrom Portsmouth University and resides in Cambridge, UK.

Before Cognizant, Duncan worked for one of the largest
publishing houses in Europe, playing a leading role in the digitalpublishing revolution, helping transform their operations andlaunching new innovative products. He holds a Masters in
Philosophy and Classics from the University of St. Andrews.

Email: Euan.Davis@cognizant.com
LinkedIn: linkedin.com/in/euandavis/

Email: Duncan.Roberts@cognizant.com
LinkedIn: linkedin.com/in/duncan-roberts-16586022/

Deep Green39

Authors

Philip Smith

Global Head of Cognizant’s Sustainability Advisory Practice
Philip Smith has spent over 20 years supporting clients in
multiple vertical and geographic markets and addressing
their sustainability challenges through the lenses of policy,
regulation, strategy, technology and organizational change.
Email: Philip.Smith@cognizant.com
LinkedIn: linkedin.com/in/philip-smith-52ba1528/

Manoj Mathew

Vice President and Global Head of Cognizant’s
Sustainability Services and Engineering
Manoj Mathew has over 22 years of experience across multiple
industries globally, advising clients and delivering on transformation
by rethinking business operating models to deliver on sustainability
goals. He is passionate about developing a systems approachto engineering sustainability goals into supply chains.
Email: m.mathew@cognizant.com
LinkedIn: linkedin.com/in/simplymanoj/

Acknowledgments
The authors would like to thank Catrinel Bartolomeu,
Director of Storytelling & Content at Cognizant, Sophia
Mendelsohn, Chief Sustainability Officer at Cognizant, andMary Brandel, editor, for their contributions to this report.

40

Deep GreenMethodology
Cognizant commissioned Oxford Economics to design and conduct a survey of 3,000 C-suite andsenior executives, including individuals at the C-suite and VP levels, from large corporations aroundthe world. Our focus was on those who play a significant role in shaping, contributing to or making
final decisions on their organization’s environmentally sustainable operations. The survey was
conducted between Q4 2022 and Q1 2023 via computer-assisted telephone interviewing (CATI).
Respondents were evenly distributed across the following geographies and industries:
Geographies

Industries•

North America (US and Canada)•

Banking & capital markets•

Europe (UK and Ireland, France, Germany,
Switzerland, Belgium, Luxembourg,
the Netherlands, Denmark, Finland,
Norway, Sweden, Italy and Spain)•

Food & agriculture•

Insurance•

Life sciences

Asia Pacific (Singapore, Australia and UAE)•

Manufacturing & automotive•

Retail & consumer goods•

Telecommunications & technology•

Transportation & logistics•

Energy & utilities•

Company size
All respondents were from organizations
with over $250 million in revenues.
•

10%: $250 million to $499 million•

Media & entertainment•

10%: $500 million to $999 million•(A smaller group was from the public sector)•

80%: $1 billion or more in revenue

In addition to the quantitative survey, Oxford Economics conducted 24 in-depth interviews withexecutives across the countries and industries surveyed. The conversations covered the major themesin this report, providing real-life case studies on the challenges faced by businesses and the actions
they are taking. The resulting insights offer a variety of perspectives on sustainability initiatives.

Deep Green41

Cognizant Research
At Cognizant Research, we help leaders make sense of today’s volatile socio-economic climate. We bring quality research and insights
rooted in Cognizant’s deep industry and technology expertise, helping leaders make the decisions that fuel their companies’ success.
Visit us at cognizant.com/us/en/insights/sustainability-resilience.

About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating andtechnology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient businesses. Headquartered in the US, Cognizant is ranked 185 on the Fortune 500 and is consistently listed among themost admired companies in the world. Learn how Cognizant helps clients lead with digital at cognizant.com or follow us @Cognizant.

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May 2023 | WF 1768100