Executives of Swiss companies are concerned about climate change. Yet the biggest hurdle in implementing their sustainability strategy is prioritizing current business needs.
The topic of sustainability is becoming increasingly important among the executives of Swiss companies, both in the awareness and in the actions of the highest corporate bodies. This is shown in the latest 2024 Deloitte CxO Sustainability Report, for which the consulting firm Deloitte surveyed more than 2'100 CxOs from 27 countries (including Switzerland) in 2024. For example, Swiss companies are now investing more in sustainability than they were a year ago. Moreover, half of the companies surveyed are in the process of adapting their business models in the direction of sustainability. On the one hand, current regulatory and market expectations, as well as direct democracy and a high level of awareness among shareholders, are contributing to this trend. But the biggest hurdle for Swiss companies in implementing their sustainability strategy is prioritizing current business needs.
In Switzerland, executives see climate change as the most pressing problem
Coping with the consequences of climate change is one of the biggest challenges for executives around the world. In Switzerland, almost half of the executives surveyed rank climate change as the most pressing issue, ahead of innovation and economic prospects.
The vast majority (82%) of Swiss executives expect that climate change will have an impact on their company’s strategy and operations over the next three years, 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: in particular, the disclosure and reporting obligations with regard to sustainability in their companies were mentioned, as well as the increased awareness of climate issues among employees and the associated demand for more comprehensive information.
Investment in sustainability increased slightly
Management is therefore aware of the urgency of the issue of sustainability, and they are responding accordingly. For example, the Swiss companies surveyed increased their investments in the area of sustainability last year, not only compared to 2023, but also significantly more than the global average. Most companies (83%) increased their investments slightly – only a small percentage (6%) made a strong increase. But climate change is not just about investing: around half of Swiss CxOs (53%) say they are adapting their company’s business model. Sustainability is a key component of their company’s strategy. This is one of the highest figures among all the countries surveyed.
«It is gratifying that companies are taking sustainability seriously and are investing more», says Reto Savoia, CEO of Deloitte Switzerland. «We are seeing more and more companies adapting their business models». This is about more than just compliance with regulations: «Executives recognize the significant business potential of sustainable business, such as using technology as a catalyst to promote climate solutions, enabling them to drive innovation and growth, create new value for their customers and stakeholders, and differentiate themselves from the competition».
It should also be noted that Swiss companies are now under greater pressure to expand their climate protection measures. This pressure comes mainly from the board of directors and management (70%), banks (68%) and civil society (66%). This is a significant increase compared to last year’s survey.
Short-term challenges slow down sustainability efforts
At the same time, although the pressure is high, there are some hurdles to implementing climate action – and these seem to be different in Switzerland from the global average. The biggest hurdle cited by the CxOs surveyed is managing short-term business challenges and meeting the expectations of their investors and shareholders. The absence of concrete sustainability solutions, as well as the absence of a senior executive with responsibility for sustainability, are also cited as the biggest hurdle.
«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 fast as we would like. This can be attributed, among other things, to changes in priorities in the short term in the light of the current climate. Many companies consider sustainability to be very important, but they are still struggling with the structural changes it requires», says Liza Engel, Chief Sustainability Officer and member of the management of Deloitte Switzerland.
