Climate and sustainability ‘The risks of climate change are becoming obvious’
FIGURE 23: LOW-CARBON TRANSITION
Expected scale of change in next 10 years: % of CFOs Little/no change
Wholesale change
Some change
4% 7%
Significant change
38% 51%
When investors come to sell the asset, they want to know the business is on the right track not only with its reporting but in reducing its footprint
Expected opportunity: % of CFOs
Little/no opportunity
18% 39% THREE OUT of five business 43% Some opportunity Source: Deloitte CFO Survey, Q3 2023
leaders rate the scale of change required to decarbonise as ‘significant’ or ‘wholesale’
(Figure 23). Government policy is seen as the biggest source of
climate pressure on business, just ahead of consumers (Figure 24)
FIGURE 24: SOURCES OF CLIMATE PRESSURE ON BUSINESS Drivers of change
Policy (regulation/taxation) Customers Employees
Public opinion/pressure groups Investors
Climate impacts Competitors Lenders Suppliers Insurers Other
0 29% 28% 18% 16% 14% 11% 10 20 30 40 37% 47% 46% 42% 41% Significant/
very significant opportunity
the EU. The timeline is meant to allow for a progressive transition to reporting. The first round impacts all companies which had to report already under the Non-Financial Reporting Directive (NFRD), but it expands that significantly.” Alistair Pritchard, Deloitte lead
partner for travel and aviation, insists the pressure from investors to take action on sustainability has not let up, while noting: “The volume and activity of investor transactions in the sector has been relatively modest over the last 12 months. So, there have probably been fewer conversations about this.” He argued: “Most investors look at
the lifecycle over which they will hold an asset. The typical lifecycle is four to five years. When investors come to sell the asset, they want to know the business is on the right track not only with its reporting but in reducing its footprint.” Yet there is a counter pressure
against action on climate change and environmental, social and governance (ESG) issues, particularly in the US. Pritchard acknowledged: “That is
% pt change on Q3, 2021
-8 -1
-6 -9 -12 -4
-10 -1 -5 -3 +4
50 Source: Deloitte CFO Survey, Q3 2023 18 Travel Weekly Insight Report 2024
the one counter to this. There are areas in the US where things are happening, for example in California. But from discussions with companies in the sector which have operations in the US, I sense there is some reticence around this and it’s causing a few dilemmas about how far and how fast companies should go. There is pressure from outside the US and from stakeholders in the US – pressure to find a balance between investing in becoming more sustainable and in wider ESG practices and pressure to optimise business performance. These debates are happening at boardroom level and could potentially result in things moving more slowly. “The point is there are differing views
on climate and ESG and the political situation could undoubtedly have a bearing on how strong any regulation is, whether any retrograde steps are made or whether things accelerate. The political situation in numerous countries could have a bearing on the pace of change.”
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
