Climate change in the assessment of Swiss companies

Deloitte surveyed over 2,000 business leaders in 21 countries, including Switzerland, on how they view and respond to the impacts of climate change. 8 out of 10 (79%) of those surveyed believe that the world is now at a tipping point on climate issues - in this country, this is even 9 out of 10 (89%). An even clearer majority of 91% of Swiss CxOs assess the current situation as a climate crisis.

Therefore, almost all respondents favor immediate action to mitigate the worst effects of climate change. The members of the management boards of Swiss companies are also significantly more critical of the consequences of climate change than their colleagues in other markets: For 60%, climate change has already caused irreparable damage - on average, only 35% worldwide share this attitude.

Great pressure to strengthen the commitment

In Switzerland, the respondents feel the pressure to step up efforts against climate change particularly clearly from their own board of directors. They also feel strong pressure, albeit somewhat less, from customers and shareholders. Globally, on the other hand, the regulatory authorities exert the most pressure - in Switzerland, they only rank fourth, followed by the company's own employees. Local companies are also more likely than the global average to believe that their own government is doing a good job in combating climate change (Switzerland 76%, globally 54%).

According to the report, Switzerland lags behind especially in the measures with the greatest leverage. The gap is most pronounced in the development of new, climate-friendly products and in linking executive compensation to specific sustainability targets (Switzerland 23%, globally 37%).

Sustainability as a reputation driver

Marcel Meyer, Head of Sustainability Services at Deloitte, classifies the results as follows: "If you want to make a difference, you have to know where the leverage is greatest. Our report identifies a number of measures that achieve significantly more impact than others. These include enforcing sustainability criteria with suppliers and partners, incorporating climate considerations into lobbying efforts, a focus on developing climate-friendly products and services, and, most notably, sustainability-related performance targets for management teams. It is in this area that many Swiss companies need to catch up." (See also graphic)

Discrepancy in measures against climate change

There is a clear discrepancy between measures with an internal and external impact. Swiss respondents consistently assess the effects of their sustainability efforts on their own company much more positively than the global average. In particular, they are more likely to assume a beneficial effect on reputation (60% vs. 49%), their own workforce (51% vs. 42%) and recruitment (48% vs. 35%). "Our study suggests that many Swiss companies are primarily concerned about sustainability because they fear for their reputation. This is a worrying tendency, because climate protection serves their very own interests, namely the long-term preservation and enhancement of the value of their company," adds Marcel Meyer.

Biggest hurdle: short-term oriented investors

Swiss executives tend to encounter different difficulties in implementing their sustainability measures than colleagues from other markets. They locate their challenges primarily in the short-term oriented demands of shareholders and investors (33% vs. 25%) or acceptance by line managers (20% vs. 12%). Costs, on the other hand, tend to play a minor role in Switzerland (19% vs. 27%).

The demand of Reto Savoia, CEO of Deloitte Switzerland and member of the management team of Deloitte North and South Europe, is clear: "The Swiss economy should take a clear role model function in climate issues. Thanks to our strong and innovative economy and the excellent Swiss educational and research institutions, we are ideally positioned to do so."

Source: Deloitte