A new report from the Capgemini Research Institute reveals that a vast majority of organizations are increasing their investment in environmental sustainability, even as they struggle to prepare for the growing risks of climate change.
The fourth edition of “A world in balance 2025,” which draws on insights from 2,146 senior executives and a global survey of 6,566 consumers, found that 82% of organizations plan to raise their sustainability investments over the next 12-18 months.
The findings highlight a significant commitment from the corporate world, with 75% of organizations viewing sustainability as a core “future-proofing strategy.” However, the report also identified a major disconnect between perceived preparedness and actual resilience.
The credibility gap in climate action:
While 82% of organizations are set to increase investments and 92% are holding firm on their net-zero timelines, the credibility of their climate action is under pressure.
The report finds that only 21% have developed detailed transition plans, and 62% of consumers believe companies are “greenwashing,” indicating a sharp rise in public skepticism.
Cyril Garcia, Head, Global Sustainability Services, Capgemini, commented on the findings. “With climate risks increasingly high on the corporate agenda, business leaders need to adopt a pragmatic, operational approach and urgently implement concrete, financed transition and adaptation measures,” he said. “This will not only build true resilience but also fuel innovation and competitiveness.”
Lagging action on climate adaptation:
Despite the widespread acknowledgment of climate-related disruptions—including supply chain issues and raw material shortages—the report shows that execution remains limited.
• 38% have taken concrete steps like infrastructure upgrades,
• 31% are shifting production to less climate-vulnerable regions,
• 26% are redesigning products.
A key takeaway is that a disconnect persists between perceived readiness and operational resilience.
AI’s environmental footprint under scrutiny:
The report also sheds light on the growing awareness of artificial intelligence’s environmental impact.
While 64% of executives report using AI to advance their sustainability goals, only 32% have taken steps to mitigate the environmental footprint of generative AI.
The number of executives who believe the benefits of Gen AI outweigh its environmental costs has dropped from 67% in 2024 to 57% in 2025, indicating growing caution.
The report, essential reading for sustainability leaders and C-suite executives, recommends several key actions to drive renewed progress.
These include strengthening the credibility of climate actions with near-term measures, building consumer trust with intuitive messaging, and ramping up circularity to reduce resource dependency. The report concludes that companies must move from strategy to execution to build future-readiness and enhance resilience.
