A new global survey conducted by IBM’s Institute for Business Value (IBV) in collaboration with Oxford Economics highlights the significant benefits that companies can experience by embedding sustainability into their operations.
The survey gathered insights from 5,000 C-suite executives across 22 countries and 22 industries, indicates that sustainability initiatives can drive better business results, including revenue growth, profitability, and talent attraction.
Key findings from the survey show that 75% of senior executives agree that sustainability drives better business results, and 72% view it as a revenue enabler rather than a cost center. Moreover, 76% of respondents reported that sustainability is central to their business strategy, emphasizing its importance in organizational priorities.
Despite the recognition of the business benefits of sustainability, challenges remain. Nearly half (47%) of executives struggle to fund sustainability investments, and only 30% have made significant progress in executing their sustainability strategies. Notably, the study highlights a focus on compliance over strategy, with companies spending more on sustainability reporting than on sustainability innovation by 43%.
However, companies that integrate sustainability across their organizations, referred to as “embedders,” reap significant business value. Embedders see a 16% higher rate of revenue growth and are 52% more likely to outperform their peers on profitability. Moreover, they are 75% more likely to attribute revenue growth to their sustainability improvements and 56% more likely to excel in talent attraction.
Interestingly, embedders demand better financial outcomes from their sustainability initiatives and do not necessarily spend more on sustainability than their peers. Instead, they benefit from incorporating sustainability into their core operations.
Challenges to embedding sustainability include data usability and skill-building. While 82% of respondents acknowledge the importance of high-quality data and transparency, only around 40% can automatically source sustainability data from core systems. However, the report suggests that generative AI could be a game-changer for sustainability efforts, with 64% of executives recognizing its importance.
In conclusion, the IBM study underscores the importance of embedding sustainability into business operations to achieve better financial performance and long-term success.
