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Companies in Central and Eastern Europe (CEE) and Southeastern Europe (SEE) are making significant progress in aligning with global sustainability efforts.
In brief:
- A regional study of CSOs highlights the Czech Republic, Greece, Hungary, and Poland as frontrunners in setting and pursuing rigorous climate targets.
- The commitment to carbon neutrality and emission reductions in these markets reflects a strategic approach that goes beyond the global norm.
- Alongside environmental goals, companies are investing in social initiatives, showcasing a holistic sustainability model that integrates community, human rights, and labor standards.
The regional deployment of the second EY Sustainable Value Study in the Czech Republic, Greece, Hungary and Poland draws on insights from 250 Chief Sustainability Officers (CSOs) or those with equivalent roles. The study reveals that companies in the countries surveyed are collectively surpassing global benchmarks in their commitment to environmental stewardship, with a strategic approach that includes setting ambitious climate targets.
An impressive 81% of companies in these markets have committed to reducing emissions by a specific amount, significantly higher than the 61% global average. Furthermore, the pursuit of carbon neutrality is more pronounced in these countries, with 73% of companies aiming for this goal compared to 44% globally. This regional determination to address climate change is setting a strong example for the global community.
In line with our findings, we present a comparative infographic that illustrates the heightened commitment to climate action within these markets.
The data clearly shows that companies in CEE and SEE are leading the way in setting ambitious emission reduction targets, significantly outpacing the global average. The commitment to sustainability is further evidenced by the substantial investment in community impact, human rights, and labor standards, with 41% of CSOs in these markets likely to invest in these areas, surpassing the 29% global figure. This reflects a holistic approach to sustainability that goes beyond environmental concerns.
CSOs in the Czech Republic, Greece, Hungary, and Poland are leading the way in engagement and transparency. Companies in these countries are significantly more likely to publicly commit to long-term emission reduction targets and disclose their annual emissions compared to the global averages. This proactive approach promotes a culture of accountability and continuous improvement, setting a strong example for others to follow.
While these markets’ sustainability achievements are notable, their journey is not without its challenges. Effective collaboration within the C-suite and navigating complex regulatory frameworks remain areas for improvement. Nevertheless, CSOs are actively seeking solutions and fostering relationships that enhance sustainability initiatives, driving a more cohesive approach to these challenges.
The diversity in satisfaction levels concerning current roles and collaboration within these markets highlights the need for a tailored strategic approach. Organizations are encouraged to balance stakeholder engagement, regulatory compliance, and financial considerations to ensure the successful integration of sustainability into their core business strategies.
The sustainability efforts of companies in the Czech Republic, Greece, Hungary and Poland are admirable, demonstrating that ambitious climate goals and strategic planning can lead to significant progress. Their commitment to exceeding global standards serves as an inspiration and a call to action for businesses worldwide to elevate their sustainability practices.
About the research
From April-May 2024, EY conducted research to understand organizations’ sustainability strategies, how Chief Sustainability Officers (CSOs) enact change, actions companies are taking to address climate change, and their impact to date.
We surveyed 250 corporate sustainability leaders (CSOs or those with equivalent responsibilities in their organization) across 15 industries and 4 countries in the Central, Eastern and Southeastern Europe & Central Asia (CESA) region. Respondents represented companies with annual revenue of over US$500m in the Czech Republic, over US$50m in Greece, over US$100m in Hungary, and over US$1b in Poland.
Summary
The EY Sustainable Value Study underscores the proactive approach of companies in Central and Eastern Europe (CEE) and Southeastern Europe (SEE) towards sustainability. These regions are not just meeting but exceeding global sustainability benchmarks, with a significant number of businesses committing to rigorous climate targets and carbon neutrality. The study also reveals a comprehensive sustainability model that extends to social initiatives, emphasizing the importance of a balanced approach. The dedication of these companies to transparent reporting and strategic planning is setting a commendable example for others to follow in the global push for a sustainable future.