Over two thirds of surveyed companies plan to increase sustainability commitment despite tough economy.
A recent MIT Sloan Management Review-Boston Consulting Group report states that “Despite the economic downturn and tenuous recovery, more than two-thirds of businesses are strengthening their commitment to sustainability”, according to a new global study byMIT Sloan Management Review (MIT SMR) and The Boston Consulting Group (BCG).”
The study, found that 69 percent of companies plan to step up their investment in and management of sustainability this year.
The second annual Sustainability & Innovation Global Executive Study surveyed more than 3,100 corporate leaders representing every major industry and region of the world.
Seventy percent of those embracing a strong “green” direction believe their organizations outperform industry peers by dong so. 66 percent said that their organization’s sustainability actions and decisions have increased their profits.
Among the findings:
- Improved brand reputation is perceived as the biggest benefit of addressing sustainability: nearly 50 percent of respondents cited it.
- Automotive is seen as the industry for which sustainability is most critical now: 80 percent of executives said sustainability-related strategies are necessary to be competitive in the auto sector.
- By contrast, only 29 percent of respondents thought sustainability strategies are currently necessary for the media and entertainment industry. But another 51 percent said they will be necessary in the future.
- The commitment of the cautious adopters to sustainability is increasing at a far faster rate than that of the embracers. The number of cautious adopters planning to increase investment and management attention jumped from 51 percent last year to 63 percent this year—a 24 percent increase. At the same time, the percentage of embracers planning similar increases, though high, remained flat at a little under 90 percent.
“Most companies—whether currently embracing sustainability or not—are looking toward a world where sustainability is becoming a mainstream, if not required, part of the business strategy,” noted Knut Haanaes, a BCG partner and managing director and coauthor of the report. “Those not already putting sustainability at the heart of their business will need to do so in the near term.”
For more details on the study’s findings and interview transcripts, visit the Sustainability & Innovation website at http://sloanreview.mit.edu/sustainability-advantage.
Good business sense guys. Invest where you live- on Earth.