Decision Maker Attitudes and Approaches Towards Sustainability in Business in 2011 Accenture C-Suite Executive Research in China, North America and the United Kingdom www.accenture.com/sustainability24
Sustainability Benefits Exceed Expectations for a Majority of Businesses The majority of businesses say that the benefits resulting from their sustainability initiatives have exceeded expectations, according to an international survey by Accenture. The survey of 247 C-suite decision makers in North America, United Kingdom and China revealed that 72 percent think the benefits of their sustainability initiatives exceeded expectations especially around brand attributes and costs. The majority of respondents view sustainability as an integral part of their business, but around a third see it as just peripheral. Two thirds believe sustainability initiatives are an investment for a business, not just a cost—but still a third are less sure.
Most companies that responded to the survey have at least a few sustainability programmes, with over a third having many. Even those without say they are still trying to implement sustainability initiatives and are likely to introduce at least some in the next year. A strong majority believe their company is investing the right amount in sustainability, with the view that next year they will invest somewhat more. Genuine concern for the environment and/or society as well as reducing energy and material costs are the main drivers of sustainability initiatives, while the cost of such initiatives is the main barrier followed closely by the inability to measure.
The survey also showed, however, that a hardcore of about a third of business leaders have yet to be convinced of the value of sustainability, thinking that it is peripheral to their business and that their business invests too much in sustainability business practices. The survey was conducted for Sustainability 24, Accenture’s global online event that brought together hundreds of leaders in the field of sustainability on May 25th 2011. The Sustainability 24 web address is http://www. accenture.com/sustainability24
For over 2 in 3 sustainability is important to their company—even more so for those that already have initiatives, and, not surprisingly less so for those without. How important is sustainability to your company?
2%
Not very important
Among those with initiatives
2%
Not at all important
28% 70% 30%
Somewhat important
Among those without initiatives
67%
Very important
13% 50%
25% 13%
1
Most companies see more benefits than expected with sustainable initiatives, specifically around brand attributes and costs. Benefits to initiatives (among those w/initiatives)
49%
Improved reputation and trust
How have the benefits from sustainable initiatives compared to expectations?
4%
47%
Seen as a responsible company
42%
Lower costs
41%
Improved brand Met requirements of customers or suppliers
Lower
24%
As expected
52%
Higher
20%
Much higher
38% 37%
More competitive
36%
Improved staff moral
34%
Driven innovation
33%
Combated rising energy costs
31%
Increased consumer demand
27%
Entered new markets Developed / sold new products and services
72%
25% 20%
Helped recruit new employees None of these
0%
Other
0%
Most view sustainability as an integral part of their business, but around a third see it as just peripheral. Which of the following is closer to your view?
Sustainability is an integral part of our business or Sustainability is a peripheral part of our business
68% 32%
2 in 3 believe sustainable initiatives are an investment for a business, not just a cost—but still a third are less sure. Do you view spending on sustainable initiatives as a cost or an investment? More of cost
34%
More of an investment
66%
2
A strong majority believe their company is investing the right amount in sustainable initiatives, with the view that next year they will invest somewhat more. Current Investment Levels
Next Year’s Investment Levels
60%
1% 2%
However, more are likely to say they spend too much than too little
21%
Much less Somewhat less
12%
Same amount
12%
Somewhat more
12%
Much more
11%
7%
1% Far too much
Too much
The right amount
Too little
Far too little
Most think the businesses sector is doing enough and 7 in 10 say it will cost a business more to be a “sustainable business”. Do you think business are doing enough to make sure their working practices are more sustainable? Equal amount say business are doing to much/too little
51%
45%
About the same or less
28%
28%
30%
23%
21%
24%
19%
7% Far too much
Does having a green, or more sustainable business, cost…?
5%
3% Too much
The right amount
Too little
Far too little
A lot more
A little more
About the same
A little less
1% A lot less
Most companies have at least a few sustainable programmes, with over a third having many. Does your company currently have any sustainable initiatives?
55% Respondents read: When thinking about sustainability, we’re referring to the way an organisation, on its path to high performance, creates value for its stakeholders by leveraging its assets and capabilities to drive innovation and profitable growth and striving for a positive economic, environmental and social impact.
38%
Yes, many 3
Yes, few
3%
3%
Don’t know
None
Even those without initiatives say they are still trying to implement sustainable initiatives and are likely to introduce initiatives in the next year. If have no initiatives: Which of the following is closest to your company’s introduction of sustainable initiatives?
If have no/don’t know initiatives: How likely are you to introduce sustainable initiates in your company next year?
60%
75%
20%
25%
13%
7% 0% We tried and failed to implement sustainable initiatives
Never tried
We tried and are still working on trying to implement sustainable initiatives
Very likely
Somewhat likely
Not very likely
Not at all likely
Currently most companies reduce electricity and implement green IT. Looking forward, they plan for more Green IT and sustainable innovation in new products. Reduce the amount of electricity used
51%
28%
Green IT Sustainability talent and skills initiatives
47%
33%
Sustainability based innovation and new products or services
37%
Sustainability performance management & disclosure
38%
28%
Reduce the amount of packaging your company uses when selling
37%
26%
Promote green transport initiatives for employees (e.g. cycling or car sharing or electric vehicle concessions)
36%
31%
Water & waste management
44%
39%
26%
Sustainable supply chains
30%
35%
33% 31%
Smart buildings
32% 32%
Maintain partnerships with environmental organisations
28%
Carbon emissions management
32%
23% 24%
Only use Fair Trade suppliers
21%
Carbon trading capabilities Other
51%
40%
27%
1% 0%
4
A strong majority believe their company is investing the right amount in sustainable initiatives, with the view that next year they will invest somewhat more.
1st
Drivers to initiatives Investor pressure
Benefits of initiatives Improved reputation and trust
Barriers to initiatives Cost of sustainability initiatives
and 2nd
Lower costs Combated rising energy costs
Regulatory requirements
The government / local authorities don’t provide enough incentives and
3rd
Consumer / customer expectation
Seen as a responsible company
The belief one company can’t make a difference to global warming Company cultural inhibitors
and
and
Opportunities for business growth and higher margins
Lack of consumer interest and Don’t think that sustainable alternatives will work as well for their business
General concern, reducing costs and expectations drive sustainable initiatives, while set-up costs, lack of interest and belief in benefits are the largest barriers. Drivers of initiatives (among those w/initiatives)
Barriers to initiatives (among all)
Genuine concern for environment / society
53%
Reducing energy and materials costs
50% 47%
Consumer / customer expectation
43%
Cost of sustainability initiatives
31%
Inability to measure sustainability initiatives The government / local authorities don’t provide enough incentives
30% 29%
Opportunities for business growth and higher margins
45%
The belief one company can’t make a difference to global warming
Reputation / brand / trust
44%
Lack of consumer interest
24%
Lack of senior leadership commitment
24%
Company cultural inhibitors
23%
35%
Competitive differentiation
31%
Regulatory requirements Investor pressure
25%
Investors don’t value / reward company for sustainable investments
Staff and recruitment pressure
24%
Don’t think that sustainable alternatives will work as well for their business
None of these Other
5
0% 0%
Other Brand and business growth also key
None of these
21% 13% 2% 7%
While both are seen as on the right track with sustainable initiatives, business is seen as doing a better job than the government. Do you think sustainability initiatives of business, overall, are on the right track? Business
Government
85%
72%
28% 15%
Right track
Wrong track
Right track
Wrong track
And business is seen as having the most responsibility and success in promoting progress and innovation.
36%
More responsible for ensuring progress in a sustainable way
28%
Doing the most to drive action towards innovative sustainable solutions
25%
Doing the most to drive action towards innovative sustainable solutions
41%
23%
47%
26%
49%
27%
Most say the level of the financial sector's investment is about right—but equal amounts say it is too much or too little— most only have some confidence in their ability to provide funding. Confidence in the financial sector to provide funding for sustainable technologies
Financial Sector’s Investment level in Sustainable Initiatives
45%
No confidence
18%
Not much confidence
56%
Some confidence
19%
Lots of confidence
28%
21%
21%
19%
7%
7%
Far too much
17%
Too much
The right amount
Too little
Far too little 6
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