(Credit: Canva Pro)The Honeywell 2Q 2023 Environmental Sustainability Index (ESI) provides a comprehensive overview of key environmental sustainability issues, including climate change, energy efficiency, water management, waste reduction, and sustainable product development. It also highlights the actions Honeywell is taking to address these issues, including investing in renewable energy, developing sustainable products, reducing waste, and implementing energy-efficient processes.
Additionally, the report also recognizes the importance of ESG initiatives in driving sustainable business practices. Honeywell is committed to prioritizing diversity, equity, and inclusion in its workforce, ensuring ethical supply chain practices, and supporting local communities through philanthropic efforts.
“Our data shows that companies aren’t wavering in their commitment to sustainability,” said Vimal Kapur, President, and Chief Operating Officer of Honeywell. “Not only are leaders keeping it at the top of the priority list despite other looming challenges, but they are also increasingly taking action."
Produced in partnership with The Futurum Group, the report is based on a survey of more than 750 business leaders who are directly involved in their organization's environmental sustainability initiatives. The survey was conducted at a time when ESG-related regulations and global calls to action are mounting, highlighting the growing importance of sustainability in the business world.
According to the third edition of the ESI, sustainability continues to lead all other corporate initiatives by a significant margin, including digital transformation and market performance. The report shows that sustainability is a top priority across all geographies, with Energy Evolution and Efficiency emerging as the top sustainability priorities over the coming six months. Followed by Emissions Reduction, Pollution Prevention, and Circularity/Recycling initiatives.
The trend towards Energy Evolution and Efficiency, Emissions Reduction, and Pollution Prevention has remained consistent over the past two quarters.
However, the report indicates that Circularity/Recycling is showing more growth than any other category, indicating that organizations may be taking a deeper look at their supply chains and the flow of materials to elevate how products, services, or resources are renewed or regenerated, rather than wasted in the second half of 2023. This trend suggests that organizations are becoming more conscious of their impact on the environment and are taking proactive steps to improve their sustainability practices.
Related Content: Honeywell Releases Environmental Sustainability Index
In 2022, the majority of organizations were primarily focused on process-driven approaches to achieve their sustainability goals. However, in the first quarter of 2023, this trend began to shift as more companies adopted a more balanced approach to their initiatives. Although the adoption of technology-driven solutions for sustainability was growing, it was doing so at a slower pace.
Nevertheless, in the current quarter, the shift towards tech-driven approaches has accelerated, with 56% of respondents reporting that they plan to leverage more technology to achieve their environmental sustainability goals in the next 12 months. This shift highlights the increasing recognition among organizations of the role technology can play in achieving sustainability targets, and how it can help them meet the growing expectations of consumers, investors, and other stakeholders.
“Companies are continuing to invest in technology that helps them achieve their environmental sustainability goals,” said Evan van Hook, chief sustainability officer of Honeywell. “We are seeing firsthand our customers take action to achieve goals, whether it’s switching to sustainable aviation fuel, tracking and reducing carbon emissions from buildings, or increasing advanced circularity solutions, such as plastics recycling. With AI becoming more prevalent, technologies will only get smarter and more efficient, and make an outsized impact on sustainability efforts.”
In April 2021, Honeywell made a commitment to achieve carbon neutrality in its operations and facilities by 2035. This will be accomplished by investing in energy savings projects, using renewable energy sources, implementing capital improvement projects, and utilizing carbon credits as necessary.
These initiatives are part of the company's ongoing sustainability efforts, which began in 2004 and have already led to a reduction in greenhouse gas intensity of over 90%. Honeywell has also pledged to establish a science-based target, including scope 3 emissions, in collaboration with the Science Based Targets initiative (SBTi).
