Sustainability A Business Opportunity

According to an international study by the Economist Intelligence Unit, sponsored by BT, organisations are failing to realise business benefits from sustainability programmes. While almost half (46%) said that sustainability programmes helped improve brand value, just one in five (20%) felt they improved profitability.

One third (33%) of respondents admitted that their company only makes sustainability efforts in markets where it is perceived to have an impact on customers’ perceptions of the firm, and a similar proportion (31%) admitted that their company’s sustainability efforts mostly centre on communication, rather than actual change.

James Watson, senior editor at the Economist Intelligence Unit, said: “Many companies are moving away from mere rhetoric towards real business initiatives. However, a gap remains between what companies claim they are achieving in terms of managing their social and environmental impacts and the extent to which their executives feel involved in these activities. Companies need to devise strategies that do more to engage staff in sustainability through their day-to-day activities.”

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Francois Barrault, CEO, BT Global Services, said: “The link between sustainability and commercial success is, without doubt, becoming clearer all the time. Our own sustainability performance is helping us win deals, create new offerings and build enthusiasm amongst our workforce.”

The research went on to identify that sustainability programmes were missing out on board-level leadership. In two out of five organisations (40%), the person responsible for sustainability issues did not report directly to the board, while 23% of organisations had no person responsible for such matters.