Honeywell Launches Environmental Sustainability Index Exhibiting Sustainability Leaders’ Sentiment On Previous Progress And Future Expectations In direction of Company Environmental Objectives
Honeywell (NASDAQ: HON), a world chief in power and local weather transition options, immediately introduced the launch of its Environmental Sustainability Index. The index is the primary quarterly indicator of key developments pertaining to world efforts in local weather change mitigation and different sustainability initiatives. Two-thirds of the S&P 500 have set emission discount targets of some type, in keeping with an August report from Harvard Enterprise Overview.
In its first of a quarterly collection, Honeywell’s new index is monitoring sentiment information on company local weather priorities and approaches to environmental sustainability. The worldwide research surveying over 600 enterprise leaders who’re concerned within the sustainability course of revealed that 90% of respondents are usually optimistic about general success with prior twelve-month objectives throughout sustainability classes together with power evolution and effectivity, emissions discount, air pollution prevention and circularity/recycling. Nevertheless, forward-looking perceptions are much less assured, with simply 67% of respondents being optimistic about reaching objectives for the approaching twelve months. Moreover, solely 63% are optimistic about reaching their objectives by 2030, an anchor deadline 12 months for quite a few commitments.
“At Honeywell, we now have the privilege of serving prospects all over the world in each sector and trade,” mentioned Darius Adamczyk, chairman and CEO of Honeywell. “In 2021, over sixty p.c of our 2021 annual income was from options that contribute to ESG-oriented outcomes, and roughly 60% of our R&D spend was directed in direction of ESG-oriented innovation. This offers us a singular place to assist our prospects and the world resolve their largest local weather and environmental challenges, in order that they will attain their targets by – or earlier than – their dedicated deadlines. Our place additionally makes us an authority on monitoring sustainability developments progress throughout the market, which we’re sharing with the world by the Honeywell Environmental Sustainability Index.”
Extra key highlights from the research embody:
- Roughly 97% of organizations plan to extend present 12 months budgets in at the least one sustainability class with practically three quarters planning to extend present 12 months budgets in all 4 classes and simply over a 3rd anticipating to extend budgets by over 50% in at the least one class.
- Respondents indicated prioritization, progress and optimism in reaching objectives throughout 4 sustainability classes: power evolution and effectivity, emissions discount, air pollution prevention and circularity/recycling. Enhancing power evolution and effectivity was the highest precedence throughout all geographies, with 73% of respondents noting it as first or second precedence. The bottom prioritization was given to circularity/recycling, with solely 28% of respondents noting it as first or second in significance.
- On common throughout all 4 sustainability classes, 62% of respondents famous they may obtain their objectives for the subsequent twelve months primarily by modifying or eliminating operational processes or enterprise behaviors. Alternatively, solely 16% famous they may obtain their near-term objectives primarily by technology-driven modifications reminiscent of upgrading or changing present programs with newer, extra environment friendly or extra sustainable applied sciences.
“As environmental sustainability efforts take heart stage, we had been extremely happy to have the chance to companion with a world chief like Honeywell in growing an information pushed index that may function a bellwether for monitoring the sentiment, adoption, and intent of firms all over the world in lowering their carbon footprint,” mentioned Daniel Newman, principal analyst and founding companion of Futurum Analysis. “Over the subsequent decade, we count on Sustainability to be additional prioritized by not solely coverage, however elevated funding by the world’s main firms to show the significance of sustainable practices, changing into a mandate from shoppers, traders, and firm boards all over the world.”
“It’s promising to see power evolution and effectivity excessive on ESG managers’ agendas. That is an space that always ends in the best ROI, as a result of the extra environment friendly your operations, the much less you pay in power prices.,” mentioned Evan van Hook, chief sustainability officer of Honeywell. “In the case of making progress, the market is bifurcated. On one hand, you’ve got firms that need assistance kickstarting their sustainability journey, and others which have relied on course of modifications and now want deep experience in how you can assault more durable issues. Irrespective of firms’ maturity, the actual alternative lies in leapfrogging right into a technology-driven method to sustainability. This may assist make sooner progress.”
Honeywell itself dedicated in April 2021 to develop into carbon impartial in its operations and amenities by 2035 by a mixture of additional funding in power financial savings initiatives, conversion to renewable power sources, completion of capital enchancment initiatives at its websites and in its fleet of autos, and utilization of credible carbon credit the place wanted. These initiatives characterize a continuation of the corporate’s sustainability efforts that started in 2004 and have already yielded a discount in greenhouse fuel depth of greater than 90%. Honeywell has additionally dedicated to setting a science-based goal with the Science Primarily based Targets initiative (SBTi).
 Methodology for figuring out ESG-oriented options is on the market at investor.honeywell.com (see ESG/ESG Data/Identification of ESG-oriented Choices).