According to a recent survey from Carrier, the HVAC decarbonization trend is not growing simply due to government incentives and regulations. Despite the complexity of building decarbonization, it stands as the highest priority for executives in their sustainability strategies through 2025.
The survey found that 83% of U.S. C-suite executives responding to the survey plan to increase sustainability spending over the next two years, with 57% citing sustainability as a top priority and 52% prioritizing decarbonization efforts.
“Companies that invest in addressing climate change will see benefits across the board,” said David Gitlin, Chairman and CEO of Carrier. “Not only is it essential for the environment, but it also delivers value to investors, customers, and the companies themselves.”
The survey, which included responses from over 200 CEOs, CFOs, and CSOs across various industries in July 2024, also highlighted the impact of government incentives on sustainability plans. Despite concerns over potential changes to legislation like the Inflation Reduction Act, 81% of respondents said they would continue or increase their sustainability investments even if incentives were rolled back.
However, only 44% of executives responding to the survey expressed strong confidence that the global net-zero goals of the Paris Climate Accord will be achieved by 2050. This underscores the ongoing challenges in meeting decarbonization targets, despite increased corporate focus on sustainability.
The survey revealed a gap in how different C-suite roles view the path forward. CSOs are more focused on specific actions, such as decarbonization and adapting to evolving ESG regulations, while CEOs and CFOs are more focused on broader business priorities. This divergence highlights a growing responsibility for CSOs to lead sustainability initiatives.
“There’s a shared believe that corporate America must lead the way in shaping the U.S. sustainability agenda,” said Gitlin, noting that 85% of executives participating in the survey think businesses have a responsibility to drive sustainability actions.
