Climate change and sustainability are becoming more entrenched in the market, with a new survey showing Australian executives have never been more optimistic about avoiding the worst impacts of climate change while continuing to grow business and the economy.

At the same time, executives are upping their own sustainability efforts while lobbying for further climate action, as they prepare for the introduction of mandatory climate disclosure laws next year.

These findings are contained in Deloitte’s latest annual CxO Sustainability Report, which features a survey of more than 2,100 C-suite executives across the globe on their views and strategies related to sustainability and climate change, as well as the obstacles that stand in their way. 

Head of Deloitte Access Economics Dr Pradeep Philip said: ”As each year passes, the actions of the private economy to build new decarbonised assets grow while capital flows away from emission intensive assets. The market is being formed, investment is flowing, and the benefits of acting on decarbonisation are starting to emerge as the costs of inaction grow.”

The report finds that Australian executives are not only becoming more optimistic about our ability to confront the climate challenge, they are also more positive than their global peers. Nearly all Australian respondents believe the world will take sufficient steps to avoid the worst impacts of climate change, up from 80% last year, and well above the global average of 90%. 

Successful climate action doesn’t have to come at a cost to growth, according to most Australian executives. Every surveyed Australian executive agrees their company can continue to grow while reducing greenhouse gas emissions, while 91% agree the world can achieve global economic growth while also reaching climate change goals, up from 79% last year. 

”These responses show executives increasingly view climate challenge as an economic opportunity, rather than a cost,” Dr Philip said. 

“It’s why uncertainty on policy can deter investment, and why better use of market signals can generate more investment flows and a more efficient allocation of resources and technologies to decarbonising the production system of Australia’s economy.”

Deloitte Australia Managing Partner for Audit and Assurance Joanne Gorton said with stakeholders increasingly expecting action on climate and sustainability, going that one step further can drive competitive advantage.

“The regulatory drum is beating. In this new era of global standards, sustainability and climate-related initiatives are no longer optional. Businesses need to gear up and integrate these considerations into business models and strategy, risk and financial planning and reporting,” Ms Gorton said.

“Terrific progress has been made – the passage of mandatory climate disclosure laws through the Senate last month gets us one step closer to introducing a climate reporting regime in line with global ISSB standards, which will provide clarity and certainty for companies and shareholders around climate-related disclosure requirements."

“However, government and business need to continue to collaborate to capatalise on the growing demand for climate action in the private sector so we can realise the economic opportunities that the global transition to net zero presents.” The report finds Australian executives are ramping up their own sustainability initiatives while leading the world in advocating for broader change. More than 80% of Australian respondents said they have increased their sustainability investments in the last year, while 61% claim to have lobbied for or made political donations in support of climate action, compared to just 44% globally. This action is already producing benefits, the most common being organisational resilience, increased revenue, and higher asset values. In the longer term, Australian businesses expect their sustainability efforts to result in higher customer satisfaction and loyalty, cost savings, and better operating margins.

Read the Australian perspective 

Explore the full global edition of the Deloitte 2024 CXO Sustainability Report