Survey findings include:
- Despite current economic uncertainties and the ongoing energy crises, a majority (57%) of leaders are increasing their investments in sustainable solutions and clean technology.
- A critical shift in the business landscape is driven by two principal factors: (40%) investor demand and (39%) the potential for new revenue sources.
- Investments in sustainability technology, specifically AI-powered software (52%) and clean energy storage solutions (60%), emerged as a priority among U.S. Fortune 1000 leaders to tackle energy costs, decrease emissions, and unlock new revenue streams.
- Only 46% of respondents are taking advantage of sustainability tax credits to help fund investments in renewable energy, highlighting the fact that many business leaders are not taking advantage of incentives available and may be leaving money on the table.
Despite Economic Uncertainties, 57% of Fortune 1000 C-suite Plan to Increase Sustainability Investments
Despite a challenging economy and an ever-warming climate, a majority of Fortune 1000 companies will increase their spending on sustainability initiatives in the next 12 months, investing in technologies like battery storage and energy optimization software.
That’s according to a survey of Fortune 1000 C-suite executives conducted by Wakefield Research on behalf of clean energy storage provider Stem, Inc., which found that the vast majority of surveyed executives (93%) said energy challenges, including record temperatures, high prices, and limited power supply during periods of peak demand, will have a negative impact on their businesses in the next year.
To mitigate those challenges, they’re taking advantage of a wide range of technologies, including smart energy storage, energy optimization software, and artificial intelligence, according to Stem CTO Larsh Johnson.
Sustainability investments can fuel growth and better position businesses for future success. In the short term, these investments save costs and counter the negative effects of energy challenges, and in the long term they can provide an additional revenue source.
John Carrington, CEO of Stem
This diverse approach demonstrates a high level of “detail and understanding of what it’s going to take” to reach sustainability goals, Johnson said. “That level of understanding appeared stronger than I thought it would,” he added.
While investor demand is still a driving pressure behind corporate sustainability investments, the survey data also indicated that C-suite executives are increasingly viewing such initiatives as a “revenue margin opportunity,” Johnson said; 39% of respondents reported that they see their sustainability efforts as a “potential source of revenue,” per the survey.
Respondents from industries including retail, construction, hospitality, and information technology answered multiple-choice questions about the types of technologies they planned to invest in or leverage in the coming year.
Three-fifths said they have adopted or plan to adopt battery storage technology or energy optimization software, while 46% pointed to carbon capture and 40% indicated investment in solar power. When it comes to digital technologies, executives said their organizations are planning to leverage data integration (53%), AI software (52%), and cloud computing (47%), among others.
Source: STEM
