EY: The climate goals have already been broken by high inflation – international research

By: Trademagazin Date: 2023. 12. 14. 12:05

Companies have dramatically scaled back their climate protection goals as a result of high inflation and geopolitical tensions. Companies are slowing down their sustainability initiatives despite the fact that they are bringing in more money than they had hoped for, according to EY’s international research of more than 500 sustainability experts. In Hungary, from January 2024, a law may encourage sustainable organizational operations.

As a result of the economic difficulties, the general deadline for the climate protection goals of companies has been pushed back from 2036 to 2050, according to the results of the survey. Last year, the companies calculated that by the middle of the century they would reduce the cumulative total emissions of greenhouse gases by an average of 30 percent, but currently the respondents expect only 20 percent.

In the current situation, only a third of respondents (34%) would spend more to deal with climate change, while last year six out of ten respondents (61%) planned a higher amount. In 2022, the companies adopted ten measures to slow down climate change, this year it was reduced to only four.

“The companies’ previous momentum in the field of climate protection has stalled, even though sustainability is already a question of competitiveness. According to the majority of those interviewed, the financial benefits achieved with green programs exceeded their expectations. In addition, nearly two-thirds of the respondents experienced a greater than expected improvement in both product and brand value”

– emphasized Ákos Lukács, head of EY’s area dealing with Climate Protection and Sustainability Services.