The approach to growth in 2023 reflected the financial and global circumstances that impacted businesses globally, which is to wait and watch the market and anticipate the optimal time to pick up and take on more risks.
Investment being one of the most volatile actions is directly impacted by the goings on in the world and respective industries, and Capgemini thinks the approach is going to change in 2024 with more organisations optimistic about the growth potential this year.
The ‘Embracing a brighter future’ report is the result of a study that assesses the investment trends of the past year and incurs a forward-looking statement from the French multinational IT service and consulting firm.
In the opening statement of the reporting, it states a 14% increase in positivity among business leaders for future growth of their organisations, which was previously shown to be 42% of leaders in the previous year’s study. With the statement comes a notion that 2024 will see increased investment in businesses as they recover from past events and tackle new challenges in sustainability, supply chains, which will be crucial to the success of their businesses. The summary also suggests that 83% of business leaders surveyed plan to increase their investment in technology and digital tools.
The position of sustainability in corporate growth strategy
Companies are still aware of the global climate change threat, which seems to be top of mind in 2024. They all see the climate as a major factor impacting operational changes to their businesses to ensure they can grow sustainably. This is 48% of businesses globally, but the report breaks down the sentiments of various nations, including EMEA, APAC, and the Americas.
When it comes to a key topic of this decade, risk, 61% of companies’ leaders believe that sustainability will be a major factor of long-term risk for them and their networks. The growing awareness of the climate as a business risk makes it a crucial area for investment in the coming 12 months with much of this going towards the supply chain and building transparency among suppliers while sharing this with their customers.
There also seems to be an emphasis on clean technology (cleantech), albeit rugged technology (outdoor electronic systems) or software-driven solutions for corporate operations. In the US, 57% of business leaders say they expect to increase clean tech investments over the next two to three years—likewise EU countries also want to follow a similar path.
In the EU this will result in expenditure of €578bn for climate mitigation, of which cleantech is a major component.
Strategies for Building Sustainability into Future Business Processes
Some the strategic areas of business highlighted by Capgemini’s report include:
Investigate how data supports sustainability objectives: Utilising data and technology is essential for organisations to reach their sustainability targets. Key climate technologies like renewable energy, carbon capture, low-carbon hydrogen, alternative fuels, and climate-modelling software are crucial in cutting emissions. Investing in these technologies is vital for achieving net-zero and other environmental goals. According to recent research involving executives, 75% stated that without climate technology, their organisations would fail to meet their sustainability targets.
Cultivate new competencies: It's imperative for organisations to prepare their workforce with necessary skills to support a shift towards sustainable business practices. Training and retraining employees in both technical (such as carbon accounting, environmental science/engineering, and data analysis/visualisation) and interpersonal (like leadership, creativity, communication, and design thinking) skills related to sustainability is of utmost importance.
Ensure access to financial resources: Organisations need to leverage the increasing availability of both public and private funding sources, including government grants, subsidies, tax credits, venture capital funding, and debt financing, to accelerate their sustainability projects. Strategically designing and planning projects to be eligible for these funding sources is critical.
For more insight into the report, click here, and see sections on supply chain vulnerability and the integration of generative artificial intelligence (Gen AI) in business.
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