86% of all responding organizations plan to increase their sustainability investments
Budget increases planned in four key areas: energy evolution and efficiency, emissions reduction, pollution prevention, and circularity/recycling
Approximately 80% of global Manufacturing and Energy companies say sustainability is their most important initiative for next six months
CHARLOTTE, N.C., July 20, 2023 /PRNewswire/ — A sizable majority of global companies surveyed are planning increased investments in support of their sustainability targets, despite economic uncertainty, according to the 3Q 2023 Environmental Sustainability Index, released by Honeywell (NASDAQ: HON) today in partnership with The Futurum Group.
The fourth edition of the quarterly index indicates that sustainability investment is growing and will continue to grow, thanks in part to the political and regulatory environment:
The Futurum Group
86% of the 751 global companies surveyed indicated that they plan to increase their sustainability budgets
7 in 10 surveyed companies said the political and regulatory environment has had a positive impact on their sustainability initiatives in the past 12 months
74% of respondents said they were optimistic about attaining sustainability goals, particularly with respect to 2030 energy goals – a strong number but 3 percentage points lower than the last index
Budget increases are slated across four sustainability categories: energy evolution and efficiency, emissions reduction, pollution prevention, and circularity/recycling
Improving energy evolution and efficiency is the top sustainability commitment across all geographies, with 87% of respondents citing it as a priority
Some 25% and 20% of organizations in Latin America and Europe, the Middle East and Africa (EMEA), respectively, plan to boost their investment in energy evolution and efficiency by at least 50% in the coming 12 months – outpacing the budgetary commitments being made in North America and the Asia-Pacific
For Manufacturing and Energy companies, sustainability has become their top priority, with roughly 8 in 10 organizations in both sectors citing sustainability goals as their most important initiative for the coming six months. These companies indicate that sustainability is far outpacing their other corporate priorities, including financial performance, market growth and workforce development.
“The latest Environmental Sustainability Index confirms that large global companies are continuing to stay on pace and invest in technology and staff to achieve their environmental sustainability goals,” said Evan van Hook, chief sustainability officer at Honeywell. “Sustainability is top of mind for leadership, and they are activating top-level staff to increase involvement and traction toward goals. At Honeywell, we are well on our way to delivering on our commitment to reaching our 2035 goals, and we are helping our customers to do the same with our ready-now solutions.”
This latest edition of the survey also found that reporting on sustainability is strong, with 93% of survey companies having a reporting process in place. 82% of these organizations are optimistic that their reporting methods will meet disclosure requirements that may emerge in the next year. Managing the reporting process is a bit trickier, however, as only 38% say they have a centralized person on staff to track sustainability efforts.
“The fourth release of Honeywell’s Environmental Sustainability Index provides new insight into how organizations are reporting and tracking their previously set commitments toward sustainability,” said Daniel Newman, principal analyst and founding partner of The Futurum Group. “This quarter, we are seeing increases in investment and transparency of efforts along with a balanced approach to technology versus process when it comes to reaching goals. As we move into 2024, we look forward to sharing data about our year-over-year comparison.”
To download the full index and survey report, please visit here: Honeywell Sustainability Index.
Methodology
The Environmental Sustainability Index is based on a global double-blind survey of 751 business, technology, and sustainability professionals directly involved in the planning, strategic development, implementation, or oversight of environmental sustainability goals and initiatives. Panelists were required to be in a leadership role within their organization, with organizations required to have a minimum of 1,000 active employees. This survey was conducted during Q2 of 2023. The first edition of the survey was conducted during Q2 and Q3 of 2022; the second edition was conducted in Q4 of 2022; the third edition was conducted in Q1 of 2023.
About Honeywell
Honeywell (www.honeywell.com) delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
About The Futurum GroupThe Futurum Group (futurum group) is an independent research, analysis, and advisory firm, focused on digital innovation and market-disrupting technologies and trends. Every day our analysts, researchers, and advisors help business leaders from around the world anticipate tectonic shifts in their industries and leverage disruptive innovation to either gain or maintain a competitive advantage in their markets.
Disclaimer:
The information presented in this document is intended solely for informational purposes and not as advice or recommendations for any particular action or investment. The information should not be relied upon, in whole or in part, as the basis for decision-making or investment purposes. The document and its contents are not guaranteed as to accuracy or completeness and are provided on an “as is” basis. Use of this information is at your own risk. Honeywell disclaims all warranties as to the accuracy, completeness, or adequacy of such information and shall have no liability for errors, omissions, or inadequacies in such information. This document includes opinions that should not be construed as statements of fact. Any opinions expressed herein are subject to change without notice. Any forecasts and forward-looking statements are directional indicators, are not predictions of future events, and do not in any way reflect expectations for (or actual) Honeywell operational or financial performance. Any forecasts and forward-looking statements represent our current judgment and are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forecasts and forward-looking statements, which reflect our opinions only as of the date of publication of this document. Honeywell is not obligated to revise or publicly release the results of any revision to these forecasts and forward-looking statements in light of new information or future events.
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SOURCE Honeywell
