Introduction
The ERM Transformation Survey assesses how effectively companies are translating sustainability ambitions into operational action. While climate, nature, and social goals are widely adopted, integration into business planning remains slow. The report finds that organisational readiness, rather than intent, is the primary constraint on progress, leading some companies to delay or dilute commitments.
About the report
The survey covers 1,475 global respondents, including 390 C-suite and board members and 1,085 managers, surveyed between December 2023 and January 2024. Participants span regions, sectors, functions, and company sizes. The research examines engagement, progress, barriers, and solutions across climate, nature, and social sustainability themes.
Key insights
Companies report stronger progress on social issues than on climate or nature. A lack of sustainability-linked financial incentives is identified as the most significant barrier to action. High-impact solutions—financial incentives, staff training, and ESG data infrastructure—are consistently underused. Engagement is weakest in operationally critical functions such as operations, finance, and marketing. C-suite respondents are more optimistic than managers, who highlight limited executive support and weak operational integration. Industrial sectors report higher confidence in sustainability progress than service sectors, despite larger environmental footprints.
Summary of survey results
Fifty per cent of respondents rate their organisation’s overall sustainability progress as very good or excellent. Social issues lead, with 57% reporting high progress, compared with 47% for climate and 45% for nature. The most cited barrier is the absence of financial incentives linked to sustainability performance (48%). Other major barriers include unavailable or costly technology (43%), lack of forceful regulation (41%), and limited shareholder interest (40%). Respondents identify sustainability-linked incentives, training, and ESG data systems as the most under-implemented yet high-potential solutions.
Detailed survey results
Overall results
Progress is consistently higher for social initiatives than for climate and nature. Companies tend to attribute slow progress to external factors, despite evidence that internal levers—particularly incentives, training, and operational integration—could materially accelerate implementation.
Results C-suite vs. managers
C-suite respondents report higher professional involvement (61%) than managers (45%) and assess progress more positively. Managers perceive barriers as more severe, highlighting poor translation of sustainability goals into operational plans, limited executive backing, and shareholder pressure. Both groups agree that financial incentives and technology availability are critical constraints.
Results by function
Operations, finance, and marketing show the lowest engagement despite their importance for implementation. Climate/ESG and supply chain functions report the highest involvement. Barriers differ by function: finance and HR emphasise missing incentives, while operations cite unavailable technology, indicating a need for function-specific responses.
Results by sector
Industrial sectors such as mining, oil and gas, and power and utilities express higher confidence in sustainability progress than service sectors. Service sectors prioritise social initiatives and identify incentive gaps as the main barrier, while industrial sectors focus on technology availability and commercial returns.
Results by region
Asia-Pacific reports the highest progress across all sustainability themes. Africa/Middle East faces the highest barriers, largely linked to weak policy and regulatory frameworks. North America reports relatively low barriers but also low progress, reflecting a pragmatic and sceptical outlook. Sustainability-linked financial incentives are a top barrier across all regions.
Conclusion and recommendations
The report concludes that many organisations lack the internal capability to operationalise sustainability goals. It recommends introducing robust sustainability-linked financial incentives, expanding targeted training, improving ESG data systems, strengthening cross-functional collaboration, and prioritising internal barriers within management control to accelerate progress and enhance business resilience.
