Companies Fall Short on Climate Pledges by Failing to Embed Net-Zero Actions Into Operations, Survey Finds

Many report that responsibility for net zero is too heavily concentrated at the top, with 95% reporting that accountability for net zero lies solely with C-suite executives and the board of directors, and 42% of operations managers receive little or no encouragement to contribute suggestions on improving the environmental sustainability of business operations.

Yet the survey finds a growing desire among mid-level employees to share responsibility for climate change goals, with 40% of operations managers calling for carbon targets to be included in their performance reviews. In addition to being passionate about the environment at their workplace, operations managers also emerge as being deeply concerned about the environment in their personal lives, with 35% describing themselves as highly supportive of the need for radical climate action and 32% driving an electric car.

The survey also finds that 40% of companies now have a public net-zero strategy, and 43% have allotted over 20% extra budget to sustainability and net-zero initiatives, indicating an increasingly widespread commitment to climate action at the board level.

Paul Marushka, Sphera’s CEO and president, said: “With high levels of personal and professional commitment to sustainability, operations managers have emerged as the secret weapon for businesses in the fight for more sustainable operations. Yet many companies are experiencing a gap between carbon pledges and operational practices because of limited involvement by operations managers. Our report finds that operations managers have the influence and desire to help drive decarbonization across business operations, supplier and partner networks. Now, what they need are the data, software and best practices to do so.”

Marushka continues: “Transparent tracking of decarbonization results is the missing link between business net-zero pledges and practices that lead to progress, with operations managers consistently calling for more frequent measurement of progress towards decarbonization at every level. Throughout the report, transparent results emerge as essential to building the trust and confidence of employees and customers in corporate climate change pledges. The key is to treat emissions reduction targets like financial targets, which are included in everything from quarterly reviews to employee KPIs. Existing technologies and content, such as data analytics and AI, already enable companies to rapidly record and reduce their carbon footprint.”

Additional findings:

• 73% of companies are already actively exploring or addressing the challenge of Scope 3 emissions, and 43% percent of operations managers are already discussing sustainability issues with suppliers and partners.
• 22% of operations managers say regulations are still the main driver of business attention to sustainability initiatives.
• Just 40% of operations managers rate employee engagement with their organization’s sustainability strategy very highly.