A recent survey conducted by the IBM Institute for Business Value (IBV) found that many executives are still making trade-offs between financial results and sustainability efforts. However, the survey of 5,000 C-suite executives across 22 industries and 22 countries revealed that companies that embed sustainability throughout their business operations can increase their overall business value.
Companies that integrate sustainability into their core functions are more likely to see higher revenue growth rates, outperform their peers in profitability, and attribute a significant improvement in operating costs to their sustainability efforts. The key is to move away from treating sustainability as an add-on and instead make it a fundamental part of all activities that contribute to long-term value creation.
Mainstreaming sustainability involves integrating it into all business units, making it part of the corporate DNA and ways of working. This approach transforms sustainability from a mere reporting exercise into a driver of business transformation. According to the research, there is a significant gap between spending on sustainability reporting and spending on sustainability innovation, with reporting surpassing innovation by 43%.
To effectively integrate sustainability, companies must address three main challenges: ensuring the usability of sustainability data, integrating sustainability insights into decision-making processes and workflows, and fostering a culture that values sustainability across all teams and functions. Companies that successfully navigate these challenges are more likely to create business value through sustainable solutions.
To learn more about how organizations are addressing these challenges and creating business value through sustainability, download the full report. The report also discusses the evolving role of Chief Sustainability Officers and showcases examples of companies from various industries that have successfully integrated sustainability into their business strategies. By embracing sustainability as a core part of their operations, companies can not only benefit the world but also boost their bottom line.
Article Source
https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/sustainability-business-value