The 2024 Veolia Triple Net Zero Industry Progress Report provides a detailed snapshot of global corporate sustainability efforts. By focusing on carbon, water, and waste reduction, or “Triple Net Zero,” it evaluates how companies are advancing their sustainability goals and identifies the challenges and opportunities they face. The findings reveal a broad commitment to sustainability, yet highlight the urgent need for faster progress to meet net-zero deadlines.
A Mixed Bag of Progress
While 98% of surveyed companies acknowledged the importance of sustainability, only 11% viewed it as both very important and very urgent. This “urgency gap” reflects the competing priorities companies face amid rising costs, regulatory demands, and evolving technologies.
Despite this gap, 72% of respondents claim to be on track with their plans. However, deeper analysis shows a different picture: only 21% have reached advanced stages of sustainability programs, with most stuck in the “sticky middle” of implementation.
Stages of Progress:
- Early Stage (Goal Setting): Most companies are setting targets and strategizing.
- Middle Stage (Implementation): This phase is challenging due to barriers like high costs and limited expertise.
- Advanced Stage (Optimization): Only one in five companies report advanced sustainability efforts.
Regional disparities further complicate progress. For example, while companies in Europe and Asia-Pacific are leading, those in North America and the Middle East & Africa lag significantly behind.
“We’re walking, not running, toward sustainability,” noted Environmental Sustainability Manager at a microelectronics company in Italy.
Decarbonization: The Leading Priority
Decarbonization continues to dominate corporate sustainability strategies. Companies are heavily investing in energy efficiency, electrification, and renewables to reduce their carbon footprint.
Key Areas of Focus:
- Energy Efficiency: 78% are retrofitting systems like HVACs and heat pumps.
- Electrification: 60% are replacing fossil fuel-based processes and equipment.
- Renewable Energy: 51% are generating on-site renewable energy, while others pursue procurement options like power purchase agreements (PPAs).
However, only 25% of companies report an excellent understanding of decarbonization technologies. Knowledge gaps persist, particularly in navigating advanced energy storage solutions or low-emission product designs.
Notable Examples:
- In the UK, Daniel Hargrove, Senior Facilities Manager at an energy firm, shared how investing in solar and wind systems significantly reduced emissions.
- Heavy industries are leading the charge, with many focusing on electrification to transition their operations.
Lagging Efforts in Water and Waste Management
Efforts to manage water and waste are growing, but slower than decarbonization. Water management has seen strong uptake, with 71% of companies implementing conservation programs. Waste management lags behind, with only 17% actively engaging in circular economy partnerships.
Emerging Trends:
- Water Conservation: Firms are adopting rainwater harvesting systems and water reuse technologies.
- Enhanced Recycling: 68% of respondents aim to improve recycling, particularly in packaging.
- Organic Waste Valorization: 22% of companies are exploring converting organic waste into valuable by-products.
“Water is critical, and we’re embracing both conservation and wastewater treatment,” said Operations Director at a hospitality firm in Mexico.
Barriers Hindering Sustainability Progress
Despite bold goals, companies face substantial challenges in achieving sustainability milestones. These include:
- Regulatory Hurdles: 36% cite inconsistent or insufficient policies as significant barriers.
- Cost Concerns: High upfront investments deter progress for 56% of companies.
- Knowledge Gaps: Nearly 50% struggle with technical expertise in implementing solutions.
- Fragmented Implementation: 9% of companies admit internal silos hinder cohesive action.
“Without adequate knowledge, energy-saving measures remain unattainable,” said Operations Manager at an Argentinian data center.
Additionally, short-term financial priorities remain a roadblock. While 75% of companies aim to meet industry benchmarks, only 12% seek to exceed them, reflecting a focus on compliance over innovation.
A Disconnect Between Corporations and the Public
The report highlights a striking contrast between public and corporate perceptions of climate risk. While 64% of the public feels vulnerable to climate-related risks, only 30% of corporations see these risks as significant to their operations.
This disconnect could hinder corporate responsiveness to growing environmental pressures. As Procurement Director at a French automotive firm, emphasized:
“Sustainability is not just urgent; it’s critical for resilience in today’s climate-conscious market.”
Collaboration and the Path Forward
To overcome existing barriers, companies are increasingly outsourcing aspects of their sustainability agendas. The report shows:
- 66% of firms outsource facilities and utility management.
- 56% use performance contracts tied to sustainability KPIs.
- 12% are exploring alternative financing models like “Energy as a Service” to spread upfront costs.
Partner Priorities:
When selecting external partners, companies prioritize:
- Operational Improvements: 49% focus on efficiency.
- Technology Adoption: 43% seek cutting-edge solutions.
- Stakeholder Communication: 25% aim to enhance transparency.
As sustainability grows in complexity, collaboration will be key to achieving Triple Net Zero goals.
Climate Insider Analysis
The Veolia report underscores the significant gap between sustainability ambition and action. Below are the key insights:
- Urgency Gap: While most companies recognize the importance of sustainability, far fewer treat it with the urgency required to meet global net-zero deadlines.
- Implementation Stagnation: Companies are struggling to move beyond the planning phase, with barriers like costs, knowledge gaps, and fragmented approaches slowing progress.
- Decarbonization Leadership: Energy-related initiatives lead the way, but water and waste management require renewed focus and innovation.
- Collaboration is Crucial: Outsourcing and partnerships are proving essential, particularly in addressing technical challenges and operational gaps.
- Regulatory Support Needed: Clearer policies and incentives could drive faster adoption of sustainability measures.
To close the gaps, companies must accelerate implementation, invest in education and technology, and strengthen collaborations with external experts. With the right approach, corporate sustainability efforts can align more closely with the urgency of the climate crisis. The next decade will determine whether firms walk or run toward their net-zero goals.
Source: Veolia
Featured Image: Credit: Veolia
