TableofcontentsExecutivesummary3Introduction8Fiverecommendations#1Boostsustainabilityinvestments9#2Elevateinternalinitiatives15#3Expandyoursphereofinfluence20#4Exploredeeperapplicationoftechnology28#5Evolvepowerstructures32Finalword37Authors39Methodology41DeepGreen3ExecutivesummaryAstheworldgrappleswiththeurgentneedtocombatclimatechangeandresourcedepletion,anewbreedofbusinessisemerging.Theseorganizationswillbesustainabletothecore—notjustgreenbutdeeplygreen,withsustainabilityencodedintheirDNA.Sustainabilitythinkingwillinfluenceeverythingthesebusinessesdo—affectingtheirentiresphereofcontrol—fromhowtheygetandusetheirenergyandmaterialstohowtheydevelopproductsandservices.Moreover,thistypeofthinkingwillimpactareasandentitiespreviouslyoutsideofthesebusinesses’control,includingtheirsuppliers,distributors,customersandpartners,inpursuitofabettertomorrow.Whatwilldrivethisnewbreedisagrowingconvictionthatsustainabilitycanrevealnewopportunitiesforthosewhorespondtoenvironmental,social,businessandregulatorypressureswitharadicalandfar-sightedrethinkofhowtooperate.Ratherthanjusttendingtothesustainabilityoftheirinternaloperations,deeplygreenbusinesseswillcollaborateinentirelynewwaysacrosstheirvaluechains—coordinatingtheirvision,actionsanddecisionswithotherplayersandpartnersintheirecosystem.Atthesametime,they’llcreateproductsandofferingsthatgobeyondmitigatingenvironmentalissues,tohelpingtosolvethem.Operatinginthismanner,thesebusinesseswillnotonlyshrinktheirownenvironmentalfootprintandthoseoftheirstakeholders—they’llalsodiscoverentirelynewwaystosecureresilientgrowth.4DeepGreenWeseeglimmersofthisfuturestatematerializingnow:It’sthebeermanufacturerthatnotonlymeticulouslytracksthejourneyofitsbarleyfromthefieldtothebottleusingblockchainbutalsohelpsitsfarmersadoptmoresustainableagriculturalpractices.andconditionsintheproductionfacility.Thesecompaniesareleadingthechargetowardasustainablefuture,andthey’redoingitwithurgency,purposeandtransparency.Butthisleveloftransparencyandinterconnectednessrequiresanexpandedunderstandingofwhatitmeanstobesustainable.Inafuture-readybusiness,sustainabilityismadepossiblewiththespeed,automationandintelligenceofadvancedtechnologies,modernizedwaysofoperating,andnewcollaborativemodelswithinandacrossvaluechains.It’sabiglift,buttheopportunitiesareasgreatastheconsequencesofinactionaresevere.Ontheonesidearethegreenfieldsthatcanarisefromproductivepartnershipsandmarket-changing,planet-savingproductsandservices;ontheothersidearedisruptedsupplychains,dissatisfiedconsumersandemployees,costlyregulatorypenaltiesandnegativepublicperception.Meanwhile,thetickingoftheclockisdeafening.Withplanetary,economicandsocietalsignalsgrowingmoreapparenteveryday,businessleaderscannothideinthisageofradicalvisibility.ExecutivesummaryIt’sthefintechthatputsitsmoneywhereitsmouthis,offeringupto10%cashbackwhencustomersbuyfromitssociallyresponsiblebusinesspartners.Andit’stheapparelcompanythathasbuiltnewlinksbetweenitssupplier,productionandretailsystems,allowingcustomerstoseeagarment’smanufacturinglocation,materialsusedDeepGreen5Tofindoutmoreaboutthefutureofsustainabilityinbusiness,weworkedwithOxfordEconomicstosurvey3,000executives—acrosseverymarketandsector—ontheirsustainabilityplans,challengesandvision.Throughouranalysis,we’vedevisedfiverecommendationsforhowleadingenterprisescanoutperformtheirmarketswithenduringanddifferentiatinggrowthbyembeddingsustainabilityattheircore:BoostsustainabilityinvestmentstorealizefullbusinessvalueTherearetwocompellingsidestothesustainabilitycoin:aneedtoinvestontheoneside,andfinancialrewardsontheother.Oursurveyrevealsarapidlyacceleratingwillingnesstospendoverthenextfewyears.Between2020and2025,thepercentageofrespondentsincreasingtheirsustainabilityspendingby10%orgreaternearlydoubles(from26%to51%).By2030,thepercentofrespondentsgrowsagain,to62%.Meanwhile,surveyrespondentsfirmlytiefinancialperformancetothesustainabilityactionstheytake.Thisconvictiononlygrowsovertime.Thenumberofrespondentswhoexpecttheirsustainabilityeffortstodrivestrongerfinancialperformancedoublesbetweennowand2025(from31%to65%).Andby2030,thevastmajority(80%)areconvincedtheirsustainabilityinitiativeswillpositivelyorverypositivelyimpacttheirfinancialperformance.ElevateyourinternalsustainabilityinitiativesforevengreaterreturnUnsurprisingly,respondents’sustainabilityinitiativesareprimarilyfocusedontheirinternaloperations—includingwhat’scommonlyreferredtoasScope1emissions—andlesssoonthesupplychainortheimpactoftheirproductsandservicesoncetheyaresoldandconsumed.166%2Whileeveryonewillultimatelyneedtogetmoreambitiousandexpandtheirsustainabilitypurviewbeyondwhat’sdirectlyintheircontrol,there’ssubstantialworktobedoneonimprovingthesustainabilityoftheirinternaloperations.Withinthenexttwoyears,accordingtoourresearch,thepressuresofcarbonabatementandclimateadaptationwillcauseamarkedshifttowardmoresophisticated,data-drivenefforts,suchasvirtualsimulationsandadvancedanalytics.Thesewillbemoredisruptivetotheoperationalstatusquothanpreviousefforts.OfallrespondentsarefocusedonthesustainabilityoftheirinternaloperationsFurther,asbusinessesrevisittheirsustainabilitystrategies,they’llalsoneedtoimprovethegranularity,accessibility,reliabilityandflexibilityofthedataonwhichthosetargetsandplansarebased.Thesearenotlinearendeavors.Inacomplexandfluidlandscape,strategymustalwaysberegardedasorganic.Companieswillhavetocontinuouslyredefinetheirbaselines,targetsandplansasnewregulations,newtechnologiesandnewchallengesemerge.Executivesummary6DeepGreenExpandyoursphereofinfluence,upstreamanddownstream,tosecuregreaterbusinessbenefitsandimpactManybusinesseshaveyettofocusonsustainabilityinitiativesoutsideoftheirdirectcontrol,includingScopes2and3emissions.Why?Becauseit’sanenormousundertaking.Imagineincreasingcommunicationandcollaborationnotjustwithinyourowncompanybutalsowithyourpartners,suppliers,distributors,communitiesandcustomers.Tofunctionatadeeplygreenlevel,businesseswillhavetobegenuinelyconnectedtotheirwiderecosystems.They’llusedataandtechnologytoacknowledge,addressandsolveforenvironmentalchallengesupanddownthevaluechain.Byleaningintothisopportunity,theywillinnovatedifferently.Thatchangewillunlocknew,revenue-expandingservicesandopennewcommercialopportunities,generateearly-warninginsightsforriskmitigationandmanagement,andestablishnewrelationshipstotransformdeliveryandproduction.Expandingyoursphereofinfluencemeanstreatingsupplierslikepartnersandseeingthesustainabilityjourneyasasharedone.Italsomeanslookingmorecreativelyupanddownthevaluechaintofindatypicalpartnersthathelpyoureconceiveproductsandservicesthatcanbedeveloped,integratedanddeployedforsustainablegrowth.Explorethedeeperapplicationofemergingandmaturingtechnologies,andcommerciallycreativewaystodeploythemToexpandsustainabilityinitiativesbeyondwhatcanbedirectlymeasured,auditedandimproved,businessesneedtoboldlyexploretechnology-drivensolutions.Inoursurvey,coretechnologiessuchascloud,IoTandautomationrankhighlyforboththeextenttowhichtheyaredeployedandtheirperceivedeffectiveness.Nowit’stimetocapitalizeontechnologythat,atfirst,maynotseemrelevantinyourindustry.Artificialintelligence,machinelearning,advancedanalytics,digitaltwinsandblockchain—suchcutting-edgetechnologiesarenecessarytoexpandsustainabilityintothelargerecosystemandcreateproductsandservicesthathelpsolveenvironmentalproblemsratherthanjustmitigateissues.Onlytheconfidentadoptionofthesetechnologieswillacceleratetheenterprise’simpactandoutcomes.34Executivesummary6DeepGreenDeepGreen75EvolvepowerstructurestoallowfornecessaryshiftsincultureandaccountabilityGiventheorganizationalchallengesnotedbyrespondents,progresswillonlyhappenbygettingyourinternalhouseinorder,fromsharpeningstrategies,toinvestinginandupskillingtalentandpreparingthegroundfortheprofoundorganizationalchangethat’slikelytocome.Mostimportantly,leadershipmodelsmustevolvetocorrectwhatourresearchrevealsasanimbalancebetweenpowerandaccountability.RespondentsreportthatCEOsusuallydevelopsustainabilitystrategiesandcontrolthefundingforthesestrategies,whilethechiefsustainabilityofficerorotherseniormanagersareheldaccountableforprogressorrewardedforsuccess.Thispowerequationneedstobebalancedifcompaniesaregoingtoachieveexpectedresults.Further,talentshortagesthreatentomarsustainabilityprogress.Becomingdeeplygreencallsfornewtalentandskillsintheenterprisethatcanoftenbefoundthroughreskillingoftheexistingworkforce.Workforcedemographicsanddynamicshaveforevershifted.Evenwithcharismaticambassadorsandchangeagentsleadingthecharge,businessesneedtoensureeveryoneismotivatedtoplaytheirpartinbusinesssustainability,andforbuilding,sharingandmonitoringbaselines,targetsandplans.ExecutivesummaryLeadershipmodelsareoutofbalance55%8%OfrespondentssaytheCEOisresponsibleforallocatingbudgetforsustainabilitySaytheCEOisaccountablefordeliveringonthesustainabilitystrategy8DeepGreenIntroductionSustainabilityisfastbecomingnotjustawayofdoingbusinessbutawayofbeingabusiness.Fromourresearchoverthelastthreeyears,we’veconcludedsuccessfulbusinessesinthecomingdecadeswillbethosethatembedsustainabilitythinkingintotheverycoreofalltheydoinsideandoutsidetheorganization,allthewaythroughtheirvaluechainsandproductandservicelifecycles.Deeplygreen,thesebusinesseswillstandout,competitivelyandcommercially,assustainabilityleadersthatsetthemarkfortransparency,authenticityandresilienceinthefaceoftheplanet’s—andhumanity’s—increasinglyurgentneeds.Forthelasttwoyears,ourresearchhastrackedhowtheconceptofsustainabilityhasexpandedandintensified.Asrecentlyas2021,wefoundthatseniorleaderssawsustainabilityasnotjustacostonthebalancesheetbutasadriverforbusinessgainslikeincreasedsalesandimprovedbrandreputation.Inourfuture-readybusinessstudyin2022,thesustainabilityimperativewasevenmoreclear.Nearlyallexecutivesaffirmedthatattendingtoenvironmental,socialandgovernance(ESG)issuesiscriticaltobeingamodernbusiness.Butitalsorevealedagapbetweensustainabilitymindsetsandactionstaken.Inourmostrecentstudy,wetookacloserlookattheactionsbusinessesaretakingnoworplantotakeinthenearfuture,aswellasthechallengesholdingthembackfrommeetingtheirgoals.Ourfindingsrevealwhatneedstohappen—atastrategy,technologyandleadershiplevel—toensurebusinessesarereadytoexpandtheirsustainabilityfocusintotheirentireecosystem.Bydoingso,businesseswillemergenotonlyasleadersintheirmarketsbutasbeaconsforhowtobeasustainablebusiness—adeeplygreenbusiness—tomeettheneedsofourchangingworld.95%70%saidsustainabilityinitiativeswoulddrivehighersales2021202390%2022saidESGwasacriticalpartofbeingamodernbusinesssaidsustainabilityisavitalelementoftheircorporatestrategyDeepGreen9DeepGreen910DeepGreenBoostsustainabilityinvestmentstorealizefullbusinessvalueOurcurrentstudyrevealsanunflaggingbeliefinsustainabilityasastrategicpriority,withnearlyallrespondents(95%)sayingitisavitalelementoftheircorporatestrategy.Thisnearlyunanimousagreementisnotjusttalk—it’saccompaniedbyawillingnesstospendonsustainabilityinitiativesthatonlygrowsovertime(seeFigure1).Infact,between2020and2025,thepercentageofrespondentsincreasingtheirsustainabilityspendingby10%orgreaternearlydoubles,from26%ofrespondentsto51%.By2030,thepercentageofrespondentsgrowsagain,to62%.1Figure1:SpendingwillrapidlyaccelerateHasyourcompany’saverageannualspendonenvironmentalsustainabilitychangedoverthefollowingperiods,andhowwillitchange?Q:Source:CognizantResearchBase:3,000seniorexecutives0%10%20%30%40%50%60%70%2018–202015%20%6%12%19%39%43%2020–20222022–20252025–203010–20%increase>20%increaseThenumberofrespondentsincreasingspendingby10%orgreaternearlydoubles,from26%to51%Andthenitgrowsagain,to62%DeepGreen11Forrespondents,investinginsustainabilitymakesgoodbusinesssense.Infact,overhalf(57%)rankedimprovedbusinessperformanceasatop-threedriverforsustainabilityefforts,aclosesecondtotheirbeliefinthemoralimperativeofdoingsocialgood(59%)(seeFigure2).Figure2:SustainabilityisbothamoralandfinancialimperativeWhatarethethreemostimportantdriversforyourenvironmentalsustainability(percentnamingeachasatop-threedriver)Q:Source:CognizantResearchBase:3,000seniorexecutives#1Boostsustainabilityinvestments59%Dotherightthingforsocietyandensureeconomicsustainability45%Demonstrateactiontotheinvestmentcommunity37%Reducebusinessrisk57%Improvebusinessperformance37%Complywithcurrentorfuturegovernment,industryorregulatorydemands36%Demonstrateactiontocustomers/enhancebrandreputationDeepGreen1112DeepGreenSource:CognizantResearchBase:3,000seniorexecutivesInfact,respondentsseemconvincedthatsustainabilityinvestmentsarejustifiedbythefinancialrewardstheywillreapovertime.By2025,65%ofrespondentsbelievetheirsustainabilityeffortswillhaveapositiveorverypositiveimpactontheircompany’sfinancialperformance—nearlydoublethenumberwhofeelthiswaytoday(34%)(seeFigure3).By2030,thevastmajority(80%)areconvincedtheirsustainabilityinitiativeswillpositivelyorverypositivelyimpacttheirfinancialperformance.Figure3:FinancialrewardsrisesharplyWhatdoyouanticipatewillbetheimpactofyourcompany’seffortstoimproveenvironmentalsustainability,acrossallbusinessareas,onyourfinancialperformance?Q:0%20%40%60%80%100%41%49%16%31%3%39%Today20252030VerypositivePositive#1BoostsustainabilityinvestmentsBy2030thevastmajorityareconvincedthatsustainabilityinitiativeswillpositivelyimpacttheirbusinessperformance12DeepGreenRespondentstyingsustainabilitytobusinessperformancenearlydoubles,from34%to65%Thenumberrisesagainto80%DeepGreen13Thespecificareasofbusinessimpactarefar-ranging,frombrandreputation,toretainingcustomersandemployees,toreducingbusinessrisk,withmorethanhalfofrespondentsnamingtheseandotherareaswheresustainabilitywillhaveapositiveorverypositiveimpact(seeFigure4).Figure4:AnarrayofbusinessperformanceimpactsWhatdoyouestimatetheimpactofyourcompany’ssustainabilityeffortswillbeonthefollowingbusinessperformanceindicatorsby2025?Source:CognizantResearchBase:3,000seniorexecutivesQ:82%Company/brandreputation78%Attractingtalent/skills58%Businessrisk71%Customerloyalty60%Employeesatisfaction/retention56%SharepriceThesustainabilitystageisset:Ithascapturedthehearts,mindsandwalletsofseniorleaders,andevennow,businessesarebreakingoutoftheircomfortzonestocollaboratewithpartners,suppliers,distributorsandevencompetitorstoadvancethesustainabilityagenda.Asaresult,thebusinessinterestssurroundingsustainabilityhaveshiftedfromthe“whydoit”tothe“howtomakeithappeneffectively,”emphasizingtheimportanceofmakinginformeddecisions,allocatingresourcesanddevisingeffectivestrategy.Forthisreason,andwith2030goalscloseathand,businessesneedtodevelopanambitiousstrategythatwillpropelthemintotheranksofthenewbreedofdeep-greensustainabilityleaders.Asoneofthesurveyrespondentssaid,“Thisisnotanice-to-have;thisisamust-have,andthisistablestakestoevenbeincludedinourRFPoratender.”#1Boostsustainabilityinvestments#1BoostsustainabilityinvestmentsThisisnotanice-to-have;thisisamust-have,andthisistablestakestoevenbeincludedinourRFPoratender.SurveyrespondentSeniorexecutive,manufacturing”“14DeepGreenDeepGreen15DeepGreen1516DeepGreenFigure5:TheprimaryfocusisoninternaloperationsTowhatextentareyourenvironmentallysustainablestrategiesfocusedonyourcompany’soperations,supplychainorproducts/services?ElevateyourinternalsustainabilityinitiativesforevengreaterreturnEvennow,though,mostsustainabilityinitiativesarefocusedontheinternaloperationsofthebusiness,includingwhat’scommonlyreferredtoasScope1emissions.Inall,66%ofrespondentsarefocusedoninternaloperations—27%toagreatextent—comparedwith59%focusedonsupplychainand50%onproductsandservices(seeFigure5).Further,twicethenumberofrespondentshasyettostartonsupplychainandproduct/serviceinitiativesvs.internaloperations(10%fortheformervs.5%forthelatter).2Q:Source:CognizantResearchBase:3,000seniorexecutivesNotatallTosomeextentToalargeextentToaverylargeextentNearlytwicethenumberofrespondentsaregreatlyfocusedoninternaloperations(27%)vs.supplychain(13%)orproducts/services(15%)Twicethenumberofrespondentshaveyettostartonsupplychain(10%)andproducts/servicesinitiatives(10%)vs.internaloperations(5%).InternaloperationsSupplychainProducts&services27%10%5%10%40%35%34%43%13%15%29%39%Thisemphasisoninternaloperationsiscompletelyjustifiableasitstemsfromtheconfidenceandcontrolbusinessescanexertinthisarea.Further,there’scontinuedandsubstantialworktobedoneonimprovingthesustainabilityoftheirinternaloperations.Infact,ourresearchshowsthatbusinessesarepoisedtobuildonwhatthey’veputinplacefortheirinternallyfocusedstrategiesandmovetohigherimpact,moredata-intensive—andmorecomplex—internallyfocusedendeavors.DeepGreen17Considerthattoday,thenumberoneareaforsustainabilityinitiativesbyfaristhebroaduseofdigitaltoolstomakeinternaloperationsmoreenergy-efficient(seeFigure6).Figure6:InternalinitiativeswillgrowindataandanalyticsintensityWhendidyoustart,orwhendoyouplantostart,implementingthefollowinginitiativesrelatedtoimprovingthesustainabilityofyourinternaloperations?Q:By2025,topsustainabilityinitiativeswillrequireagreaterlevelofdatasharingandmoresophisticatedanalytics#2ElevateyourinternalsustainabilityinitiativesSource:CognizantResearchBase:3,000seniorexecutives2020–20222025Usedigitaltoolstomakeoperationsmoreenergy-efficientGenerateenergyyourselfmoresustainablyRecyclewastefromback-officeoperations81%56%63%42%41%42%MovetomoresustainablepremisesUsedataanalyticstoIDprocessimprovementUsedemand/supplysimulationsorvirtualmodels(digitaltwins)Top3initiatives18DeepGreen#2ElevateyourinternalsustainabilityinitiativesOnewidelyusedapproachisthedeploymentofInternetofThings(IoT)sensorstomonitortheemissions,waterusageandefficiencyofphysicalassetstomeetthebusiness’ssustainabilitygoals.Forinstance,sensor-equippedsmartfactoriescangeneratemassiveamountsofdatathat,throughdashboards,offervaluableinsightintowastegeneratedonaproductionline.Additionally,climatecontrolsensorsconnectedtoIoTnetworkscansupplyinformationregardingthecarbonfootprintofheatingofficespaces.Byleveragingthedatacollectedfromthesesensors,andutilizingmachinelearningalgorithmstoidentifyareasforimprovement,businessescangainaclearerunderstandingoftheirdirectemissionsandworktowardreducingthem.By2025,thenumber-twointernaloperationsinitiativewillbetheuseofvirtualmodels(i.e.,digitaltwins)toexperimentwithsustainabilityoptions.Anotherwidelyembracedareaistheuseofcloudcomputingtosupportthenowentrenchedadoptionofhybridworkmodels.Abenefitofdoingsoisthereductionofbothcommuting-relatedemissionsandtheneedforcostlyandenvironmentallyharmfulglobaltravel.By2025,however,thetopsustainabilityinitiativeswillrequireagreaterlevelofdatasharingandmoresophisticatedanalysis.Inadditiontomovingtomoresustainablepremises,forexample,42%ofrespondentsplantocreatevirtualsimulations(i.e.,digitaltwins)oftheiroperationsandphysicalassets,whichwillenablethemtoexperimentwithmoresustainablepracticeswithoutdisruption.PhysicalSmartCityVirtualDigitaltwinDataexchangeSensorsDataDataexchangeActionsAnalyticsDeepGreen19#2ElevateyourinternalsustainabilityinitiativesUsethisinternaloperationswork—andparticularlythedatafoundation—asaplatformtobroadenthescopeandelevatethesophisticationofsustainabilityinitiativestoopennewopportunitiesanddriveawiderandmoresignificantimpact.Theuseofdigitaltwinswillrequireadvanceduseofreal-timedatatovisualize,modelandsimulatetheoperationalorphysicalenvironment.Forinstance,businessescoulddesignthemostefficientlayoutofaproductionline.Ortheycouldfigureoutthebestwaytoensurethequalityoftheirtreatedwastewaterthroughouttheirplantoperations.Bytyingindatafromtheintegratedassetmanagementsystem,theycouldusedatavisualizationandanalysistointerpretthedataobtainedfrommultiplesensors,pumpsanddetectorsinthetreatmentplantand,throughpredictiveandprescriptiveanalysis,promotecontinuousimprovement.Respondents(41%)alsowanttotakethesameprinciplesusedinmakingtheirphysicalassetsmoreefficientandapplythosetotheirbusinessprocesses,leveragingprocessminingtomoredeeplyunderstandwhichprocessescouldbeautomatedtoreduceoperationalwasteorbeeliminatedaltogether.Forexample,businessesareusingintelligentprocessautomation(IPA)tomeasureandreducetheenvironmentalfootprintofknowledgeworkersbystreamliningrepeatedtasksandgatheringadditionaldata,acrossoperations.Thebottomlineis,whilemanycompaniestodayhavetakenthestepofassessingtheirmostcriticalsustainabilityissues,they’veoftenunderinvestedinbuildingthedatafoundationtounderstandtheirrealimpactontheseissuesandeffectivelymanagethem.Ratherthanjusttrackingsingleimpacts,likecarbonemissions,theyalsoneedtoaccountforimpactsonbiodiversity,waterusage,habitatandothernaturalresources.Thismeansaugmentingtheirsustainabilitystrategywithadatastrategythattracksseveralrelevantimpactsandprovidesdashboardscustomizedtodifferentusergroups.SuchdashboardsshouldcontaintherelevantKPIsandmethodstomeasurethemostimportantimpacts,andvisualizewhatinformationwouldbemostnecessarytocompeldifferentusergroupstoact.Eachimportantdecision-maker—whetherenergyorprocurementmanager—shouldhavetheirownsustainabilitydashboardtonavigatetheiractionsandmovetheneedleontheimpactstheyinfluence.Asdataandknowledgeadvance,businesseswillneedtocontinuallyandregularlyrevisitandreassesstheirbaselines,targets,plansandreporting,aswellasimprovethegranularity,accessibility,reliabilityandflexibilityofthedataonwhichthosetargetsandplansarebased.Evenasthesemorecomplexendeavorsareunfolding,businessesalsoneedtoturntheirattentiontotheareasoutsideoftheirownfourwalls.Itisessentialtousethisinternaloperationswork—andparticularlythedatafoundation—asaplatformtobroadenthescopeandelevatethesophisticationofsustainabilityinitiativestoopennewopportunitiesanddriveawiderandmoresignificantimpact.20DeepGreen20DeepGreenDeepGreen21Expandyoursphereofinfluence,upstreamanddownstream,tosecuregreaterbusinessbenefitsandimpactIt’seasytoseewhyfewerrespondentsarecurrentlyengagedwithsustainabilityinitiativesfocusedontheirsupplychain,productsandservices,andScope3emissions.Doingsorequiresbusinessestoexpandtheireffortsintoareasthat,untilnow,seemedcompletelyoutofreach.Withasoliddataandadvancedanalyticsfoundationinplace,combinedwithotherincreasinglysophisticatedandmaturetechnologycapabilities,however,theyhavethetoolstobreakthroughthewallsoftheirorganizationstoseeandshapeenvironmentalimpacts,mitigateriskanddiscovernewopportunitiesthroughoutthevaluechain.Makenomistake,thecollaboration,transparencyandinformationsharinginvolvedwillrequirenew,disruptivewaysofleadingandoperatingthatmaychangeorganizationstructuresandevenbusinessmodels.Whilethischallengeisboundtocomewithgrowingpains,it’salsoagoldenopportunityforleadingorganizationstomoveintoricherandpotentiallymorelucrativerelationshipswiththeirpartners,suppliers,distributors,communities,competitorsandcustomers.Therearetwobroadcategoriesofexternallyfocusedsustainabilityinitiatives:upstreamanddownstream.Downstreamactivitiesencompasstheproductdesignitselfandwhathappenswhentheproductisinthecustomer’shands.Upstreaminitiativesfocusontheintricateandextensivesupplychains,logisticaloperationsandpartnerecosystemsthatformthebackboneofcontemporaryglobalbusiness.3Thecollaboration,transparencyandinformationsharinginvolvedwillrequirenew,disruptivewaysofleadingandoperatingthatmaychangeorganizationstructuresandevenbusinessmodels,butit’sagoldenopportunitytomoveintoricherandmorelucrativerelationships.22DeepGreen#3ExpandyoursphereofinfluenceInourstudy,thetopthreeactionsrespondentsaretakingtodaytoimprovesupplychainsustainabilityincludeworkingtoresponsiblysourcerawmaterialsandcomponents,andselectingsupplierscommittedtomeetingspecificsustainabilitymetrics(seeFigure7).Q:Morethanhalfofrespondents(57%)saythey’vealreadystartedonthesetypesofinitiatives.Butfortheseactivitiestobetrulyeffective,thesuppliersthemselveswouldneedtobecountedontoaccuratelymonitor,measureandreportontheirenvironmentalimpacts.Figure7:TransparencywillbekeytoreachingsupplychainsustainabilitygoalsWhendidyoustart,orwhendoyouplantostart,implementingthefollowinginitiativesrelatedtoimprovingthesustainabilityofyoursupplychain?Transparencywillbeatopinitiativeby2025asbusinessesseekmorescrutinyofsupplierclaims2020–20222025Sourceandbuyassets,products,componentsandrawmaterialsthatrequirelessenergySourceandbuyassets,products,componentsandrawmaterialsthataremadefromrecycledmaterialsSelectsuppliersthatcommittomeetingspecificsustainabilitymetrics62%57%57%42%38%41%SelectsuppliersthathaveanetpositiveimpactontheenvironmentSourceandbuyassets,products,componentsandrawmaterialsthatlastlongerSelectsuppliersthatprovidegreatertransparencyofend-to-endsustainabilityTop3initiativesSource:CognizantResearchBase:3,000seniorexecutivesDeepGreen23#3ExpandyoursphereofinfluenceInotherwords,theseactionsdon’ttakeintoaccounttheabilitytoseewhat’sbehindsuppliers’claims—theactualdata-basedevidencethatshowshowthosemetricsandconclusionswerearrivedat.Thatlevelofscrutinywouldrequirefulltransparencyintothesupplier’senvironmentalimpacts,somethingthatisn’tonthetop-threelistandthatonly38%ofrespondentsarecurrentlyengagedin.Thisinconsistencycouldposeariskforbusinesses,leavingthemvulnerabletogreenwashingclaims(whetherintendedorunintended),embarrassingrevelationsandpotentialfinancialregulatorypenalties.Forexample,fashionindustrysupplychainsarenotoriouslyfragmented,withnumeroustouchpointsfrommultiplesourcingmaterialsandlocations,multiplemanufacturingstagesandawiderangeofproductswhoseproductionrequiresmanysuppliersandsub-suppliersacrosstheworld.Thisfragmentationcreatessilosandalackofacommondatalanguagewithinthesupplychain.Variousorganizationsfollowdifferentdatacollectionprocessesanddifferentmeasurementunitsthatundoubtedlydiminishthecredibilityofthedata.Improvingaccuracyandtransparencywillrequiredatagovernanceandstandardization,continualsupplychainmonitoring,robustreportingsystems,regularstakeholderengagementandatransparentcorporateculture.Ifthereareresidualemissionsfromactorsinyoursupplychainorinyourownfourwalls,andyoucan’teliminatethem,thenyouhavetoactivelyputtogetherprojectsthatwillgetyouthere.SurveyrespondentSeniorleader,manufacturingsector”“DeepGreen2324DeepGreenBy2025,suppliertransparencyreachesthenumbertwospotonsupplychainsustainabilityendeavors.Togaintheseinsights,businesseswillneednewlevelsofcooperationandcoordinationwiththeirsupplychainpartners,andnewtrustedandsecuremechanisms,suchasdistributedledgers(blockchain),forbothsharingdata-driveninsightsandmetricsandmodelingoutpossiblescenarios.Forexample,businessesarecombiningautomationwithRFID(radiofrequencyidentification),blockchaintechnologiesandanalyticstotrackmaterialsandproductsthroughouttheirlifecycle,fromextractionandproductiontouseanddisposal.Bydoingso,theycanidentifyopportunitiesforreusingandrecyclingmaterialsandensurethatwasteisproperlymanaged.Logisticsandtransportationisanotherareawheretransparentoperationsareattainable.Usinglocationtechnologies,analyticsandAI,businessescanreducewastebyoptimizingdeliveryroutes,reducingtheneedforpackagingandloweringthecarbonfootprintoftransportation.It’sessentialtoengagesuppliers,distributorsandothersinthevaluechainaspartners,collaboratingwiththemandseeingthesustainabilityjourneyasasharedone.Forward-lookingbusinesseswillalsobeopentoatypicalpartnershipstohelpthemreconceiveproductsandservicesthattheycandevelop,integrateanddeploytogrowwithsustainability.Brandsoweittothemselvestobehonestandtransparentandsharetheirjourney.I’verepeatedlyheardcustomersandconsumerssaying,‘Wedon’texpectyoutobeperfect;weexpectyoutobehonest.’SurveyrespondentSeniorleader,USmanufacturerWehavestartedaprojecttocollaboratewithblockchainserviceproviders,whereablockchainnodewillrecordourCO2emissiondataandenergyconsumptioninacertifiableandsecureway.SurveyrespondentSeniorleader,Spanishinsurer””““#3ExpandyoursphereofinfluenceDeepGreen25#3ExpandyoursphereofinfluenceFigure8:CircularandXaaSmodelswilldriveproduct/servicesustainabilityWhendidyoustart,orwhendoyouplantostart,implementingthefollowinginitiativesrelatedtoimprovingthesustainabilityofyourproductsandservices?Q:Downstreamactivitiesencompasstheproductdesignitselfandwhathappenswhentheproductisinthecustomer’shands.Ourstudyindicatesarelativelylowerdegreeofactivityinthesedownstreamactivitiescomparedwithinitiativesfocusedoninternaloperationsandupstreamendeavors(seeFigure8).ThetopthreeinitiativeswillleadtonewwaysofdoingbusinesswithcircularandXaaSmodelsSource:CognizantResearchBase:3,000seniorexecutivesAremadefromrecycledmaterialsoraremadetobeeasilyrecycledProductsandservicesthat:Productsandservicesthat:HaveanetpositiveimpactonthenaturalenvironmentHelpcustomerssaveenergyoruserenewablesources49%39%43%42%40%41%UsedesignthinkingtoreimagineproductsIncludeadviceandsupporttoaidconsumersinusingproductsandservicesmoresustainablyArebasedonsharingbusinessmodels2020–20222025Top3initiativesInfact,fewerthanhalfofrespondentsareengagedineventhetopthreedownstreamactivitiesnamed:usingrecycledmaterials(49%),helpingcustomerssaveenergy(43%)andensuringanetpositiveimpactontheenvironment(39%).Downstreaminitiativesareparticularlychallengingwhentheyinvolveinfluencingandcontrollingdecisionsonce“thecatisoutofthebag”;thatis,whentheproductorserviceisinthehandsofthecustomer.26DeepGreenWelaunchedourfirstsustainability-linkedloantohelpourpartnersandothersmall-scalebusinessesgrabtheopportunitytoreducetheircarbonfootprint.SurveyrespondentSeniorleader,financialservices”“#3ExpandyoursphereofinfluenceEverincreasingregulatoryandpublicscrutinymakesitmandatoryforexecutivestotakecontrolofdownstreamimpacts.Asseenwiththewidelypublicizedvideoofafewyearsago,whenresearcherstriedtorescueaturtlethathadingestedaplasticstraw,it’sclearthatit’sthemanufacturersandsellersofproductsthatareheldaccountable,nottheconsumerswhodisposeoftheitemimproperly.Betweennowand2025,thenumber-onedownstreamactivitywillshiftfromusingrecyclablematerialsinproductstocompletelyre-imaginingproductdesign.Thisinvolvesexploringinnovativesolutions,suchasnewmaterialsandsustainablepackaging,tocreateaclosed-loopsystemthateliminateswasteandreducesenvironmentalimpact.Thesetypesofcircularbusinessmodelsfocusondesigningoutwaste,retainingtheuseofproductsandcomponents,andreturningmaterialstotheproductlifecycle,therebybuildingeconomic,naturalandsocialcapital.Forexample,wasteatoneendofavaluechaincouldbefreshinputforanother(usingworn-outcartirestomakepaddedfloorsinachildren’splayground,forinstance).Inaddition,respondentsintendtoworkdirectlywithconsumerstoeducate,adviseandincentivizethemonmakingapositiveimpactontheenvironment.Doingsowillrequireadeeperunderstandingofhowproductsarebeingusedbyoutfittingtheproductsthemselvestoconveythatinformation.Thesenewinsightswill,inturn,supportnewbusinessandoperationalmodelssuchas“everythingasaservice”(XaaS)andcircularbusinessmodels.26DeepGreenDeepGreen27#3ExpandyoursphereofinfluenceBecauseXaaSmodelsenabletracking,measurementandusagedetails,theyopenthedoortonewcommercialmodelsbasedonproactiveandpredictiveservicesthatenhanceproductperformance,extendassetlifecyclesandenablecustomerandsuppliercollaboration.Alightingmaker,forinstance,offersanas-a-serviceofferingthroughwhichcustomerspayforthelightingproductonlywhiletheyuseit.Attheendofthecontract,thecompanyreusesandrecyclestheproducts.Asaresult,customersachievezerowaste,andthecompanygainsanewchannelforserviceandmaintenancerevenues.InbothXaaSandcircularbusinessmodels,theexpansionofinfluenceestablishessustainablepracticesthroughoutthevaluechain.Fortunately,thetoolsnecessaryforachievingtheseinnovativeapproachesaremoreaccessiblethanmanybusinessleadersmayrealize.ReduceenvironmentalfootprintMinimizewasteReduceresourcedependencyGenerateincreasedincomeCircularbusinessmodelsSeparatewaste,reuseCollectatend-of-lifeGreenproductsCleanerproductionBetterserviceBy2025,thenumber-onedownstreamactivitywillbecompletelyre-imaginingproductdesign.28DeepGreen28DeepGreenDeepGreen29Explorethedeeperapplicationofemergingandmaturingtechnologies,andcommerciallycreativewaystodeploythemThere’snodoubtthattechnologyisthekeytosuperchargingthesustainabilityenginebehindbothinternalandexternalendeavors.It’sfairtosay,infact,thattoday’ssustainabilityneedsandopportunitiesarearrivingjustaskeytechnologiessuchasAI,blockchainanddigitaltwinsarereachingmorematureandwidespreaduse.Suchadvancedtechnologiesareintegraltobothexpandingsustainabilityintoalargerecosystemandcreatingproductsandservicesthathelpsolveenvironmentalproblemsratherthanjustmitigateissues.Inourstudy,respondentshaveimplementedawiderangeoftechnologiestosupporttheirsustainabilityinitiatives(seeFigure9).Overhalfofrespondentshavedeployedacoresetoftechnologies—cloud/edge,IoT,artificialintelligence/machinelearning(AI/ML)andbigdataanalytics—thatcannowbeconsideredtablestakes.Figure9:CoretechnologiesareseeingwidespreaduseWhichofthefollowingtechnologieshaveyouimplementedtoimproveyourenvironmentalsustainability?4Q:Forexample,manybusinessesaremigratingtomoreenergy-efficientcloudenvironmentsandawayfromon-premisesdatacenters—which,accordingtosomeestimates,accountfor2%ofglobalGHGemissions.It’snotunusual,infact,toseebusinessesreducethedatacenterfootprintby25%bymigratingtocloud.Theleadingcloudproviders,too,areworkingtobringtheirservicestoclientsinincreasinglysustainableways—makingtheworkloadsmigratedoutofdatacentersmoreenvironmentallyfriendly.Anotherexampleistheuseofanalyticstechnologies—drivenbyAIandML—tocorrelatethemanyandvarioussustainabilityvariablesandgetnewinsightsintosteeringinterventionsformaximizedbenefitsandminimizedcost.Withnewtools,it’snotonlyCIOswhocanunderstandandusethesesophisticatedtechnologies;everyonefromproductmanagerstotheC-Suitecanfocusonsystemoutcomesandnottheinputs.Source:CognizantResearchBase:3,000seniorexecutivesTop6technologiesimplementedtoday66%62%58%51%42%28%#1Cloud/edge#2IoT#3AI/ML#4Bigdata/analytics#5IPA/RPA#65G30DeepGreen79%75%73%72%70%69%#1IPA/RPA#2AI/ML#3Blockchain#4Cloud#5Remoteworktechnologies#6Bigdata/analyticsEvenmorerevealing,however,isalookatwhichtechnologiesrespondentsciteashavingbeenmosteffectiveatdrivingenvironmentalsustainability(seeFigure10).It’snotsurprisingthatfiveofthesixtechnologiesmostwidelyimplementedbyrespondentswerealsointhetopsixmosteffectivetechnologies.Buttheresearchdoesrevealtwounexpectedfindings.Oneofthesestand-outfindingsisthewidegapbetweenthepercentofrespondentsusingintelligentprocessautomationandroboticprocessautomation(IPA/RPA)(42%)andthepercentcitingitaseffectiveorhighlyeffectiveinadvancingtheirsustainabilitystrategy(79%).Infact,IPAjumpsfromthetopfivemostimplementedtechnologytothenumberoneineffectiveness.Q:#4ExploredeeperapplicationoftechnologyTop6mosteffectivetechnologiestodayIPAjumpsfromthetopfivemostimplementedtechnologytothenumberoneineffectivenessWhileblockchaindoesn’tmakeittothetop-sixlistoftechnologiesused,73%ofthosewho’veimplementeditareconvincedofitseffectivenessThisisprimarilybecauseintelligentautomationtoolscangreatlyenhanceinternaloperations,leadingtogreaterefficiencyandthus,sustainability.Further,byleveragingtheseinsightsintointernalefficiencies,andapplyingthemtoprocessesupstreamanddownstream,businessescanalsocollectandorganizedatafromsourcesthatwerepreviouslyinaccessibleortoolabor-intensivetomanage.Examplesincludehandwrittendocumentationfromsuppliers,orthecollationofdatarelatingtocustomerbehavior.Figure10:BoldtechdecisionspayoffwithhigheffectivenessscoresHoweffectivehaseachtechnologyyou’veimplementedbeeninimprovingyourenvironmentalsustainability?(Percentofrespondentsnamingeachaseffectiveorhighlyeffective)Source:CognizantResearchBase:3,000seniorexecutivesDeepGreen31Asecondstandouttechnologyisblockchain.Withjust26%ofrespondentshavingimplementedthistechnology,blockchaindoesn’tevenmakeittothetop-sixlist.However,73%ofthosewho’veimplementeditareconvincedofitseffectiveness,boostingittonumberthreeofthetopsixmosteffectivetechnologies.Akeybenefitofblockchainisitspublicledgerofimmutablerecords.Thishighlysecureand“trustless”technologyprovidestransparencybetweensuppliersandcustomersregardingeverythingfromtheoriginofcomponentsandingredientsusedinproducts,totheirjourneythroughthesupplychain,allwithoutrevealingcompetitivelysensitiveinformation.FoodcompaniesfromBumbleBeeFoodstoNestleuseblockchaintechnologytoshareinformationonethicalsourcingandtheenvironmentalimpactofproducingtheendproduct.Thesomewhatlowpercentofrespondentsusingblockchaincouldpartlybeattributabletoitsrelativelynewemergenceintotheenterpriseworldand,insomecases,thenegativeconnotationsstemmingfromitsassociationwith“crypto”activities.It’salsotruethatsomeformsofblockchaincanbedetrimentaltotheenvironmentduetotheirpowerusage,butlow-poweralternativeshavenogreaterimpactontheenvironmentthanothertechnologiesandcanbepoweredbyrenewableenergysources.Anothertechnologynotableforitsusageversuseffectivenessgapisdigitaltwins,whicharevirtualrepresentationsofphysicalthings,fromtechinfrastructurestofactories.Althoughthey’reusedbyjust8%ofrespondents,40%ofthemsaydigitaltwinsareeffectiveorhighlyeffective.Inparticular,digitaltwinsholdmuchpromiseforsupportingupstreamanddownstreamsustainabilityinitiatives.Bycreatingthem,businessescantestandreconfiguretheir(real)supplychainorlogisticsnetworkstoslashtheircarbonemissions,redesigntheirwatermanagementsystemsandrealizemoreresponsiblesourcingstrategies.Bydevelopingdigitaltwinecosystems,businessesandotherstakeholderscanmodeltheimpactsoftheirdecisionsonareasoftheeconomyfarbeyondtheirimmediatevaluechains.Inoursurvey,welloverhalfofrespondents(62%)believethatyetmoresignificanttechnologicaladvancementsareneededtoachievenet-zeroambitions.Butfromwhatwe’reseeing,thetechnologyisalreadyhere—there’sno“magicbullet”solutionthat’syettoemerge.Instead,what’sneededarethebolddecisionstomoveintonewtechnologyareasthatareshowinghighratesofeffectivenessnowandthatcansupportthemorecomplexendeavorsinvolvedinmanagingScope3emissions.Bydoingso,businessescanexpandtheirsphereofinfluenceandpromotecollaborationandtransparencythroughoutthevaluechain.#4Exploredeeperapplicationoftechnology73%Ofthosefirmsthathaveimplementedblockchainareconvincedofitseffectiveness62%Thinkmoresignificanttechadvancesareneeded.Butinactuality,thetechnologyneededforsustainableinitiativesisheretoday32DeepGreen32DeepGreenDeepGreen33EvolvepowerstructurestoallowfornecessaryshiftsincultureandaccountabilityBecomingsustainabletothecore—deeplygreen—isafull-companyendeavorthatwillimpactalllevelsandareasofthebusiness.Essentially,noaspectofthebusinesswillbeuntouched.It’satop,downandsidewaysundertakingtoshiftfromdoingbusinessmoresustainablytobeingasustainablebusiness.Itbarelyneedstobesaid:Sustainabilitystrategiesareonlyaseffectiveasthebusiness’sabilitytodeploythem.Thismeansstrategiesneedtobesufficientlyfundedandclearlycommunicated.Itmeanseveryoneintheorganizationisawareoftheirroleandincentivizedtofulfillit.Itmeansinvestingintherighttalentandpreparingthegroundfortheoften-profoundorganizationalchangethatwillbenecessary.Anditmeansthepeopleheldaccountableforachievingstrategicsustainabilitygoalsaretheonesempoweredtomakethebolddecisionsanddisruptivechangesneededtoachieveexpectedoutcomes.Butthat’snotwhatwe’reseeinginoursurveydata.Whenweaskedrespondentstodescribetheresponsibilityandaccountabilitystructuresintheirorganization,theresultingpowerequationappearsoutofbalance.Forthemajorityofrespondents,it’sthetopoftheorganization—theCEO—whocreatesandsignsoffonthestrategyandallocatesbudget.Aswouldbeexpected,theresponsibilityforexecutingthestrategycascadesdowntothelowerlevelsofthehierarchy,suchasthechiefsustainabilityofficer(CSO),seniormanagersanddepartmentorfunctionalmanagers.534DeepGreenFigure11:NewleadershipmodelsareneededHowisresponsibilityandfundingforyourenvironmentalsustainabilitystrategyspreadacrossyourcompany?ChiefExecutiveOfficer55%16%34%20%66%16%38%19%8%11%50%51%8%12%52%56%Whoallocatesbudgetforthesustainabilitystrategy?Whogivesapproval/signoffforfinalstrategy?Whoisaccountablefordelivering?Whoseperformanceismeasuredagainstthestrategytargets?ChiefOperatingOfficerChiefSustainabilityOfficer/nominatedheadofsustainabilityorequivalentCollectiveseniormanagementteamQ:#5EvolvepowerstructuresSource:CognizantResearchBase:3,000seniorexecutivesDeepGreen35Q:What’smisaligned,however,iswhointheorganizationisheldaccountablefortheirperformanceinreachingthestrategicsustainabilitygoals.Ratherthanthestrategycreators(usuallytheCEO)andbudgetapprovers(CEOsandCFOs)takingownershipforthestrategy’soutcomes,it’stheCSOsandseniormanagerswhoseperformanceismeasuredagainstmeetingsustainabilitytargets.Onlyinatinyminorityofcasesisthestrategycreator’sperformancetiedtosustainabilitygoals(seeFigure11).ThisisnottosaythattheseniormanagerandCSOrolesshouldnotbeheldaccountablebutthattheaccountabilityshouldbemoreevenlyshared.Thiswillrequireleadershipmodelstoevolve.WhilethepowerstructureismorebalancedwhenitcomestotheCSO’srole—withamoreevenratioofresponsibilityforstrategycreationandsign-offandaccountability—thebalancestillseemsmisaligned.With60%ofstudyrespondentsseeinganincreaseddemandintheirorganizationforcreatingadedicatedCSOrole,itstandstoreasonthattheCSOshouldbeempoweredwiththeauthorityandresourcestochampionsustainabilityinitiativesatthesamelevelastheirC-suitepeers.Withthisorganizationalmisalignment,it’snowonderthat,whenaskedtonamethetopchallengesofsettingandachievingtheirsustainabilitygoals,respondents’topresponseswereallindicativeofthisimbalanceofstrategyandaccountability.Thechallengesrespondentsnamedincludealackofalignmentbetweendifferentbusinessunitsandstakeholders,lackofstrategicclarity,andalackofawareness,skillsorbroaderunderstandingofsustainability—allnamedbyoverone-thirdofrespondents(seeFigure12).Figure12:RevisedpowerstructureswillsolvekeychallengesWhichofthefollowinginternalchallengesinhibitprogresstowardsettingandachievingyourenvironmentalsustainabilitygoalsthemost?#5Evolvepowerstructures39%Lackofalignmentbetweendifferentbusinessunitsandstakeholders38%Lackofstrategicclarityofenvironmentalsustainabilityroadmap35%Lackofawareness,skillsorbroaderunderstandingofsustainabilityamongstaff33%Lack,scarcityorhighcostofspecializedtalentrequiredtoexecutestrategy31%Maturetechnologysolutionssuitableforourbusinessarenotavailable31%Specializedtechnologyrequiredistooexpensive30%Inflexibleandinefficientbusinessprocesses30%DifficultycollaboratingwithsuppliersSource:CognizantResearchBase:3,000seniorexecutives36DeepGreenLackofskills—namedasatop-threechallenge—isemergingasaparticularconcernforbusinessesthataimtoleadinsustainability.Businessesmustfirstrecognizethecompetenciesneededtobuildaclimate-smartworkforceandthenmaketrainingavailabletoeveryemployeeonarole-by-rolebasis.Goodcurriculumalreadyexistsforbasicclimateliteracyandposition-specifictraining,sothiscanreadilybedone.Thefactis,theentireworkforceneedstoshareresponsibilityforrealizingsustainabilitygoals.Businessesneedtoensureeveryoneisawareofsustainabilitygoalsandismotivatedtocontributetothem.Whilesustainabilityambassadorsarevital,itwilltakeawidearrayofpeopleintheorganizationtobuild,shareandmonitorbaselines,targetsandplans.Forthisreason,incentivesystemsarekeytorewardthosewhofulfilltheirresponsibilityinmeetingsustainabilitytargets.Inourstudy,only32%oftheparticipantsreportedincentivizingemployeesatalllevelstoimprovesustainabilityintheirworkplace.However,asignificant71%oftherespondentsidentifiedincentivizationasthemosteffectivemethodforpromotingaculturalshifttowardssustainablepractices.Withastructuralrebalanceofpower,areskillingoftheworkforceandemployeeempowerment,seniorleaderswillhavethepiecesinplacetoinspiretherestofthebusinesstoembodyaculturethatvaluesincorporatingsustainabilityintoeveryaspectofoperations,partnershipsandproducts.#5EvolvepowerstructuresDeepGreen37DeepGreen3738DeepGreenFinalwordTheworldhasawakenedtothedireneedsofourplanet,itsresourcesandthediverseformsoflifethatpopulateit.Andforbusinesses,thatmeansfindingapathforward—farbeyond“business-as-usual”—toanas-yetundefinedwayofproducinggoodsandservicesthatmeetbotheconomicandenvironmentalneeds.Wefeelsurethatbusinesseswillfindthatpath.Drivenbyingenuity,acollaborativespiritandthecouragetochange,businessleaderswillmeetthecallforradicaltransparency,authenticityandresilience,intunewiththeprevailingwindsofchange.Inthenameofsustainability,wewillseethesebusinessesputasideoldcompetitivetropestoformatypicalpartnerships,creativelydeployemergingandmaturingtechnologies,andboldlyseekcommercialdifferentiationfromtheirsustainabilityleadership.Thepiecesandpartsarethere—itwillbethewinnerswhoassemblethem.Whatyoudonextasaleaderiscritical.Whateverpathyoutakedemandshumility,open-mindedness,andawillingnesstopartnertoaddressthecomplexandinterconnectedchallengesoftheday.Itwon’tbelongbeforetheideasof“sustainability”and“business”becomeoneandthesame,asthetwobecomeintertwinedinadeeplygreenworld.38DeepGreenDeepGreen39AuthorsEuanDavisAssociateVicePresident,HeadofCognizantResearchEuanDavisleadsthoughtleadershipworldwideatCognizant.Hedeterminesthestrategicthoughtleadershipthemesforthecompany,fromshiftingcustomerdynamicsandaccelerateddigitizationtosustainabilityandcorporateresilience.Heleadsateamofthinkersandwriters.Euanisasought-afteradvisorandkeynotepresenteronissues,trendsandemergingopportunities.HejoinedCognizantin2013tosetupathinktankcalledtheCenterfortheFutureofWork(Europe).HenowassumesleadershipofCognizantResearchglobally.BeforejoiningCognizant,EuanservedasaPrincipalAnalystforForresterResearchbasedinLondon.HeholdsaBAdegreefromPortsmouthUniversityandresidesinCambridge,UK.Email:Euan.Davis@cognizant.comLinkedIn:linkedin.com/in/euandavis/DuncanRobertsSeniorManager,CognizantResearchDuncanRobertsisaSeniorManagerinCognizantResearch.Hejoinedthecompanyin2019asadigitalstrategyandtransformationconsultantinindustriesrangingfromsatellitecommunicationstoeducationalassessment.Hehasadvisedclientsonutilizingtechnologytomeetstrategicobjectivesanddiscovertheartofthepossiblethroughinnovation.BeforeCognizant,DuncanworkedforoneofthelargestpublishinghousesinEurope,playingaleadingroleinthedigitalpublishingrevolution,helpingtransformtheiroperationsandlaunchingnewinnovativeproducts.HeholdsaMastersinPhilosophyandClassicsfromtheUniversityofSt.Andrews.Email:Duncan.Roberts@cognizant.comLinkedIn:linkedin.com/in/duncan-roberts-16586022/40DeepGreenAuthorsPhilipSmithGlobalHeadofCognizant’sSustainabilityAdvisoryPracticePhilipSmithhasspentover20yearssupportingclientsinmultipleverticalandgeographicmarketsandaddressingtheirsustainabilitychallengesthroughthelensesofpolicy,regulation,strategy,technologyandorganizationalchange.Email:Philip.Smith@cognizant.comLinkedIn:linkedin.com/in/philip-smith-52ba1528/ManojMathewVicePresidentandGlobalHeadofCognizant’sSustainabilityServicesandEngineeringManojMathewhasover22yearsofexperienceacrossmultipleindustriesglobally,advisingclientsanddeliveringontransformationbyrethinkingbusinessoperatingmodelstodeliveronsustainabilitygoals.Heispassionateaboutdevelopingasystemsapproachtoengineeringsustainabilitygoalsintosupplychains.Email:m.mathew@cognizant.comLinkedIn:linkedin.com/in/simplymanoj/AcknowledgmentsTheauthorswouldliketothankCatrinelBartolomeu,DirectorofStorytelling&ContentatCognizant,SophiaMendelsohn,ChiefSustainabilityOfficeratCognizant,andMaryBrandel,editor,fortheircontributionstothisreport.DeepGreen41MethodologyCognizantcommissionedOxfordEconomicstodesignandconductasurveyof3,000C-suiteandseniorexecutives,includingindividualsattheC-suiteandVPlevels,fromlargecorporationsaroundtheworld.Ourfocuswasonthosewhoplayasignificantroleinshaping,contributingtoormakingfinaldecisionsontheirorganization’senvironmentallysustainableoperations.ThesurveywasconductedbetweenQ42022andQ12023viacomputer-assistedtelephoneinterviewing(CATI).Respondentswereevenlydistributedacrossthefollowinggeographiesandindustries:Geographies•NorthAmerica(USandCanada)•Europe(UKandIreland,France,Germany,Switzerland,Belgium,Luxembourg,theNetherlands,Denmark,Finland,Norway,Sweden,ItalyandSpain)•AsiaPacific(Singapore,AustraliaandUAE)CompanysizeAllrespondentswerefromorganizationswithover$250millioninrevenues.•10%:$250millionto$499million•10%:$500millionto$999million•80%:$1billionormoreinrevenueIndustries•Banking&capitalmarkets•Food&agriculture•Insurance•Lifesciences•Manufacturing&automotive•Retail&consumergoods•Telecommunications&technology•Transportation&logistics•Energy&utilities•Media&entertainment•(Asmallergroupwasfromthepublicsector)Inadditiontothequantitativesurvey,OxfordEconomicsconducted24in-depthinterviewswithexecutivesacrossthecountriesandindustriessurveyed.Theconversationscoveredthemajorthemesinthisreport,providingreal-lifecasestudiesonthechallengesfacedbybusinessesandtheactionstheyaretaking.Theresultinginsightsofferavarietyofperspectivesonsustainabilityinitiatives.©Copyright2023,Cognizant.Allrightsreserved.Nopartofthisdocumentmaybereproduced,storedinaretrievalsystem,transmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,orotherwise,withouttheexpresswrittenpermissionofCognizant.Theinformationcontainedhereinissubjecttochangewithoutnotice.Allothertrademarksmentionedhereinarethepropertyoftheirrespectiveowners.May2023WF1768100AboutCognizantCognizant(Nasdaq-100:CTSH)isoneoftheworld’sleadingprofessionalservicescompanies,transformingclients’business,operatingandtechnologymodelsforthedigitalera.Ouruniqueindustry-based,consultativeapproachhelpsclientsenvision,buildandrunmoreinno-vativeandefficientbusinesses.HeadquarteredintheUS,Cognizantisranked185ontheFortune500andisconsistentlylistedamongthemostadmiredcompaniesintheworld.LearnhowCognizanthelpsclientsleadwithdigitalatcognizant.comorfollowus@Cognizant.CognizantResearchAtCognizantResearch,wehelpleadersmakesenseoftoday’svolatilesocio-economicclimate.WebringqualityresearchandinsightsrootedinCognizant’sdeepindustryandtechnologyexpertise,helpingleadersmakethedecisionsthatfueltheircompanies’success.Visitusatcognizant.com/us/en/insights/sustainability-resilience.WorldHeadquarters300FrankW.BurrBlvd.Suite36,6thFloorTeaneck,NJ07666USAPhone:+12018010233Fax:+12018010243TollFree:+18889373277EuropeanHeadquarters280BishopsgateLondonEC2M4RBEnglandTel:+44(01)02072977600IndiaOperationsHeadquarters5/535,OkkiamThoraipakkam,OldMahabalipuramRoad,Chennai600096Tel:1-800-208-6999Fax:+91(01)4442096060APACHeadquarters1FusionopolisLink,Level5NEXUS@One-North,NorthTowerSingapore138542Phone:+6568124000