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Sustainability – A Top Priority for CXOs
Sustainability – A Top Priority for CXOs

October 21, 2022

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Over the years the discussion on sustainability has evolved and transformed into an important board room agenda. One of the key drivers for the same is the growing carbon emissions and climate change. Notably, to stabilize the climate, global CO2 emissions must decline 50% by 2030 and reach net zero by 2050.

In order to achieve this target, the industry has a major role to play, and with that realization sustainability has now emerged as one of the top 10 priorities for CEOs.

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Source: NASSCOM’s Sustainability Opportunity for Tech Services and Solutions, October 2022

Moreover, focusing on sustainability is not only an ethical call but makes complete business sense. Research has shown that early movers on sustainability tend to outperform on top-line growth and value creation.

  • Performance analysis for the top 200 Fortune 500 companies shows that they registered higher revenue and market capitalization growth compared to their counterparts who were more of followers in the sustainability journey.

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Source: NASSCOM’s Sustainability Opportunity for Tech Services and Solutions, October 2022

Further, for a complete net-zero transition, it's important for all seven energy and land use systems to substantially reduce emissions. Consequently, companies across industries are working towards accelerating their carbon neutrality and et-zero timelines. An analysis of Fortune 500 companies shows that:

  • ~55% of the companies have accelerated their carbon-neutral timelines to 2030
  • While nearly ~40% of the companies have accelerated their carbon neutral timelines to 2040

To know more about how this increased focus on sustainability is creating business opportunities for technology providers, stay tuned for my next blog: “Sustainability an opportunity for tech providers”. Looking for even more details click on the title to read “NASSCOM’s Sustainability Opportunity for Tech Services and Solutions”.

 

 


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Neha Jain
Senior Analyst

Neha Jain

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