Honeywell Releases First Quarterly Environmental Sustainability Index
- The first cross-industry and cross-geography sustainability index, results show that companies are satisfied with past results, but less optimistic about future short-term and long-term goals
- Nearly 90% of companies plan to add sustainable development budgets in the next 12 months
- Findings show that recent efforts to address climate issues have largely revolved around changing processes and behaviors across the enterprise, with less emphasis on technology integration
Honeywell recently released the Environmental Sustainability Index (ESI). The index is the first quarterly index of key trends in global climate change mitigation action and other sustainable development initiatives. An August report by Harvard Business Review found that two-thirds of companies listed on the S&P 500 have set related emissions reduction targets.
In its first quarterly survey, the Honeywell Environmental Sustainability Index tracks sentiment data on companies’ priorities on climate change and their approach to environmental sustainability. More than 600 business leaders around the world involved in the sustainability process participated in the survey. Regarding the sustainable development goals in the four categories of energy transformation and efficiency, emission reduction, pollution prevention and recycling/recycling in the past 12 months, 90% of the respondents generally positively believe that overall satisfactory results have been achieved. However, forward-looking forecasts show an overall low level of confidence, with only 67% of respondents feeling optimistic about achieving their goals for the next 12 months. In addition, only 63% of respondents are optimistic that they will achieve their own sustainable development goals by 2030, which is the deadline for the realization of many sustainable development commitments.
Honeywell Chairman and CEO Darius Adamczyk
“Honeywell is proud to serve customers across a broad range of industries around the world. In 2021, more than 60 percent of Honeywell’s revenue will come from businesses that help address environmental, social and governance (ESG) challenges around the world. The company approx. 60% of innovative R&D starts from improving customers’ ESG performance. This uniquely positions Honeywell to help our customers and the world address the toughest climate and environmental challenges, on track or ahead of their commitments. This advantage also makes us a professional authority with insight into the sustainable development trends and progress of the entire market, and shares it globally through the Honeywell Environmental Sustainability Index. “
Highlights of the survey also include:
Some 97% of businesses plan to supplement their current year budgets in at least one sustainability category; nearly three-quarters plan to supplement their current year budgets in all four categories; more than one-third of organizations expect to supplement their current year budgets in at least one category More than 50% of the budget.
Respondents indicated priorities, progress and optimism for achieving goals across the four sustainability categories of energy transformation and efficiency, emissions reduction, pollution prevention and recycling/recycling. Among them, promoting energy transformation and improving efficiency are the primary goals of companies in all regions of the world, and 73% of respondents rank them as the first or second priority. And recycling/recycling was the lowest priority, with only 28% of respondents placing it first or second.
Across all four categories, 62 percent of respondents indicated that they would achieve their sustainability goals over the next 12 months primarily by modifying or reducing operational processes or business practices. Additionally, only 16 percent of respondents indicated that near-term goals would be achieved primarily through technology-driven change, such as upgrading or replacing existing systems with newer, more efficient or more sustainable technologies.
With environmental sustainability gaining traction, we welcome the opportunity to work with a global leader like Honeywell to develop this data-driven index, making it the best way to track companies around the world as they reduce their carbon footprint. A bellwether of sentiment, action, and intention.
Over the next decade, we expect sustainable development to not only receive more policy support, but also greater investment from leading global corporations, highlighting the importance of sustainable practices and becoming a key component of global consumers, investors and corporate boardrooms. rigid requirements.
Chief Analyst and Founding Partner
Energy transformation and efficiency are expected to be at the top of the agenda of corporate ESG-related executives. This is often an area with the highest return on investment, as more efficient operations lead to lower energy costs.
When it comes to progress, the market is mainly divided into two situations. Some businesses need help kick-starting their path to sustainability, while others that previously relied on process adjustments now need deep expertise to solve tougher problems. Regardless of a company’s maturity level, only by actively adopting a technology-driven approach can it truly seize the opportunities for sustainable development and accelerate the process of change.
—Evan van Hook
Chief Sustainability Officer, Honeywell
In April 2021, Honeywell committed to achieving carbon neutrality for all business operations and facilities by 2035. The company will take a package of measures, including increasing investment in energy-saving projects, adopting renewable energy, completing asset improvement projects for business facilities and company vehicles, and using reliable carbon credits, etc., to further continue the company’s consistent commitment to sustainable development effort. Since 2004, the greenhouse gas intensity of the company’s operations and facilities has been reduced by more than 90%. Honeywell has also committed to working with the Science-Based Targets Initiative (SBTi) to develop science-based targets that include other indirect GHG emissions from the value chain, known as “Scope 3” emissions.
In China, Honeywell is also committed to fulfilling the company’s commitment to sustainable development, and helping China’s sustainable development goals of peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060. For example, the Suzhou factory of Honeywell Safety and Productivity Solutions Group has been successfully selected into the list of green manufacturing demonstrations announced by the Ministry of Industry and Information Technology of China, and won the title of “Green Factory” demonstration enterprise. The company is currently advancing the “green factory” certification of several other factories in an orderly manner. Honeywell’s core business meets the needs of the Chinese market. The company works with local partners to promote the sustainable development of many industries and help realize a more low-carbon, efficient, safe and healthy sustainable future.
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