The State Of Sustainability Transformation 2026

ENVIRONMENT & SOCIETY

environnement et societe analyses thomas husson

This article summarizes the key findings from the World In Balance 2026 Report from the Capgemini Research Institute. It provides an overview of how leaders perceive climate change and sustainability and how they transform their own organization to tackle the environmental challenge.

I make it a point to thoroughly analyze reports from leading global consultancies to form an independent perspective on the actual state of corporate transformation.

When it comes to sustainability, the Capgemini Research Institute’s "A World in Balance 2026" study is definitely worth a read.

What Is The Current State of Corporate Sustainability Transformation?

Most organizations remain immature in this area, struggling both to accurately quantify the impact of climate change on their business and to successfully pivot their economic models. A mere 5% can truly be considered pioneers.

Companies recognize the negative impact of climate change on their operations but struggle to measure it. Only 15% of organizations have fully quantified the financial impact of climate-related disruptions. While over 80% are aware of the negative consequences climate change poses to their business, only a fraction manage to track them effectively.
Geopolitical tensions are repositioning sustainability as a resilience imperative. Nearly two-thirds of respondents agree that, due to geopolitical pressures, their organization's sustainability decisions increasingly balance emission-reduction goals with resilience, security, and business continuity.
Sustainability is becoming a core business driver. Most surveyed executives now view sustainability as a lever for competitive advantage. This is a positive shift. However, I believe widespread skepticism remains. We need to lead by example and better communicate success stories that prove how sustainable transformation reduces risks and costs, drives revenue growth, and boosts brand equity. Interestingly—and this is a metric I haven't seen elsewhere—sustainability spending is projected to grow from 1.04% of revenue in 2025 to 1.2% in 2026.
Execution remains highly complex for the vast majority. The Capgemini Research Institute’s Sustainability Maturity Index has declined for the second consecutive year, dropping from 111 in 2025 to 105 in 2026. Capgemini estimates that only 5% of organizations are true frontrunners.

Is AI Truly an Engine for Sustainable Transformation?

While AI can undoubtedly serve sustainable transformation, its negative environmental impact is a reality that is rarely quantified with sufficient precision. Ultimately, this boils down to how the technology is deployed. As technology historian Melvin Kranzberg famously noted: "Technology is neither good nor bad; nor is it neutral."

Even though 45% of executives acknowledge that AI has significantly increased their organization's greenhouse gas emissions, 71% believe that the benefits of Generative AI outweigh its environmental costs.

This is the part of the study where I am most skeptical, as it entirely depends on which "benefits" we are talking about. Don’t get me wrong: I agree that AI can be leveraged for the environment (optimizing supply chains and logistics, improving energy efficiency, reducing consumption, and streamlining ESG reporting and data verification). However, measuring its true net positive impact remains difficult for two simple reasons:

The Jevons Paradox: We must account for the fact that increased energy efficiency inevitably stimulates further consumption.
The Data Gap: A lack of data access and transparency remains by far the primary challenge in this space.

For deeper insights, I encourage you to read the full study here.

By Thomas Husson, Independent Analyst.

If this topic resonates with you, I have advised various clients at the intersection of sustainability, marketing, and AI—feel free to reach out to discuss further.

I believe in quality over quantity so don’t expect daily or even weekly updates, but rather bi-monthly or monthly news – assuming I’ll only write when I have something meaningful to share.