Sustainability’s Role in Business Performance

Environmental sustainability is, undeniably, a debt that business owes to society.But it can also be a path to increased profitability and competitiveness. Think of it as first-mover advantage: companies that act bigger and faster on sustainability are performing better. Meanwhile, time is running out on a fast-follower strategy.Our survey respondents illuminate the way forward for companies looking to scale their sustainability efforts – and their performance. Learn more by reading our findings.Download the PDF Top categories of findings var modalData62f63573a22d0 = {"title":"Investment reasons","color":"green","info":"Regulation is driving sustainability. But so is the impression companies leave on the world.","summary":"Regulations win out, but companies are also becoming self-conscious: societal approval and reputation rank highly.","question":"What are your company\u2019s underlying reasons for investing in each environmental issue?*","footnote":"* Select all that apply. Data aggregated across environmental issues.","d3DataStory":"investment-reasons"} Investment reasons Regulation is driving sustainability. But so is the impression companies leave on the world. View data var modalData62f63573a2641 = {"title":"Motivators","color":"blue","info":"Respondents see revenue and profit opportunities in sustainability, but the commitment of top leadership and the board matter more.","summary":"Sustainability is driven from the top \u2013 leaders are pushing their organizations to act.","question":"What forces motivate your company to take action to improve the planet\u2019s environment?*","footnote":"* Data represents the percentage of respondents who selected the motivator with the highest importance.","d3DataStory":"motivators"} Motivators Respondents see revenue and profit opportunities in sustainability, but the commitment of top leadership and the board matter more. View data var modalData62f63573a298e = {"title":"Barriers","color":"gold","info":"The fit between sustainability and the business's objectives and results is not as clear as businesses would like.","summary":"Uncertainty about embedding sustainability into the business runs high, as does alignment with strategy and ROI.","question":"What are the main barriers in your company for taking action to improve the planet\u2019s environment?*","footnote":"* Select all that apply. Data aggregated across environmental issues representing top 5 selections by respondents.","d3DataStory":"barriers"} Barriers The fit between sustainability and the business's objectives and results is not as clear as businesses would like. View data var modalData62f63573a2cb7 = {"title":"Data quality","color":"green","info":"Respondents are frustrated with sustainability data.","summary":"Only 21% say they are completely satisfied with the quality of their environmental sustainability data.","question":"For each environmental issue area where data is collected, how satisfied are you with the quality of the data?*","footnote":"* Data aggregated across environmental issues.","d3DataStory":"data-quality-satisfaction"} Data quality Respondents are frustrated with sustainability data. View data var modalData62f63573a300c = {"title":"Data dissatisfaction drivers","color":"purple","info":"When data is difficult to work with, insights wither.","summary":"Respondents are concerned about their data completeness, scope, collection frequency, and understanding the calculations behind it.","question":"For the environmental issue areas whose data quality you\u2019re not fully satisfied with, which reasons apply?*","footnote":"* Select all that apply. Data aggregated across environmental issues.","d3DataStory":"dissatisfaction-reasons"} Data dissatisfaction drivers When data is difficult to work with, insights wither. View data var modalData62f63573a3337 = {"title":"Financial materiality","color":"red","info":"The perception of sustainability\u2019s financial effects plays an important role in the actions companies take.","summary":"Most companies don\u2019t see sustainability as financially material now, but a minority do \u2013 and they are seeing more success.","question":"How long do you think it will be before environmental issues become material to business results?","footnote":"","d3DataStory":"materiality"} Financial materiality The perception of sustainability’s financial effects plays an important role in the actions companies take. View data Gain key insights by subscribing to our newsletter Subscribe to our newsletter for up-to-date insights on technology information and connect with us on Twitter. Subscribe Connect with us var modalData62f63573a3885 = {"title":"Impact on profitability","color":"purple","info":"Companies overwhelmingly recognize that sustainability is intertwined with their bottom line.","summary":"80% see a positive relationship with long-term profitability.","question":"How do you perceive the relationship between your company\u2019s long-term profitability and environmental sustainability?","footnote":"","d3DataStory":"profitability"} Impact on profitability Companies overwhelmingly recognize that sustainability is intertwined with their bottom line. View data var modalData62f63573a3b8e = {"title":"Impact on competitiveness","color":"purple","info":"Companies see a strong link between sustainability and their long-term competitive advantage.","summary":"71% see a positive relationship with long-term competitiveness.","question":"How do you perceive the relationship between your company\u2019s long-term competitiveness and environmental sustainability?","footnote":"","d3DataStory":"competitiveness"} Impact on competitiveness Companies see a strong link between sustainability and their long-term competitive advantage. View data var modalData62f63573a3ecd = {"title":"Investment priority areas","color":"green","info":"Investing to stop climate change matters most, but when grouped with the other top priorities, a holistic strategy emerges.","summary":"The high ranking of materials use, solid waste, and resource availability reflects circular economy thinking.","question":"Please select the environmental issue that is the highest-investment priority for your company","footnote":"","d3DataStory":"highest-investment-priority"} Investment priority areas Investing to stop climate change matters most, but when grouped with the other top priorities, a holistic strategy emerges. View data var modalData62f63573a41e1 = {"title":"Reporting standards","color":"blue","info":"Respondents are struggling to find third-party sustainability reporting standards that are most relevant to how they do business.","summary":"When it comes to monitoring and reporting environmental sustainability, many companies develop their metrics themselves.","question":"For each issue, which source of metrics does your company use for monitoring and reporting purposes?*","footnote":"* Select all that apply. Data aggregated across environmental issues.","d3DataStory":"reporting-standards"} Reporting standards Respondents are struggling to find third-party sustainability reporting standards that are most relevant to how they do business. View data var modalData62f63573a44e7 = {"title":"Measurement methods","color":"red","info":"Most companies rely on estimates and calculations rather than sensor data.","summary":"Across all environmental issues, most companies (37%) are using assumptions and estimates to collect data.","question":"How is data collected for each environmental issue area?*","footnote":"* Select all that apply. Data aggregated across environmental issues.","d3DataStory":"measurement-method"} Measurement methods Most companies rely on estimates and calculations rather than sensor data. View data var modalData62f63573a47ea = {"title":"External reporting methods","color":"blue","info":"Nearly everyone is telling the world about their sustainability actions.","summary":"The popularity of dedicated reports means companies (and their investors) are taking sustainability seriously.","question":"Where is overall progress on environmental issues reported\/communicated externally?*","footnote":"* Select all that apply.","d3DataStory":"external-reporting-locations"} External reporting methods Nearly everyone is telling the world about their sustainability actions. View data var modalData62f63573a4af0 = {"title":"Impact on strategic and operational decisions","color":"purple","info":"If you aren\u2019t thinking about sustainability in strategic and operational terms, you\u2019re in the minority.","summary":"75% of respondents use environmental sustainability data as an important piece of their strategic and operational decisions.","question":"To what extent does your measurement and reporting on environmental issues inform your company\u2019s strategic and operational decision-making?","footnote":"","d3DataStory":"operational-decision-making"} Impact on strategic and operational decisions If you aren’t thinking about sustainability in strategic and operational terms, you’re in the minority. View data The Balance Sheet Blind Spot: How Sustainability Affects Competitiveness and Profits Download

Sustainability’s Role in Business Performance

The Balance Sheet Blind Spot: How Sustainability Affects Competitiveness and Profits

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