Innovation, collaboration and technology are key to breakthroughs, but barriers remain, according to Economist Intelligence Unit study
- Sustainability endeavors continue despite the economic downturn, but study highlights opportunities to further embed them throughout organizations and business strategies
- Senior leadership engagement is the most frequently (44%) cited factor in determining the success of companies’ sustainability strategies over the next three years
- Leading companies need to advocate sustainability benefits to encourage adoption by the wider business community
- Challenges still exist with perceived high costs and lack of belief in rate of returns
- Research paper was commissioned by Coca-Cola Enterprises and developed by the Economist Intelligence Unit (EIU)
According to a recent study, senior leadership is regarded as the most critical driver of sustainability within a business and nearly half of businesses (44%) believe engagement with business leaders will be the most important factor in successfully implementing a sustainability strategy over the next three years. Additionally, at the Board level, 28% have periodic meetings addressing sustainability, but only 18% of companies have directors who assess the success of sustainability initiatives.
These are the findings of Sustainability Insights: Learning from Business Leaders , a study commissioned by Coca-Cola Enterprises and developed by the Economist Intelligence Unit (EIU). The research, based on a survey of more than 300 European business executives[i], explores how businesses’ sustainability strategies have performed in recent years and identifies the key drivers for future success.
“Despite the challenging economic environment, companies have largely stayed with their sustainability goals. What we are seeing now is a real shift to mainstream sustainability-related initiatives in Europe. Companies are learning how to better integrate this into their businesses profitably. There is still a lot of room to improve but this is a profoundly positive change,” said Brian Gardner, senior editor at the Economist Intelligence Unit.
More Compelling Business Case for Sustainability Required
The research identifies the need to build a stronger business case to convince the wider European business community of the value of putting sustainability at the heart of its operations. While 52% of companies have been able to maintain their sustainability agenda despite the economic downturn, almost half (44%) of respondents report that the biggest barrier to implementing a sustainability strategy is perceived high costs, coupled with a lack of belief in rates of return.
For those companies that recognize the value of sustainability, the benefits they cite include differentiation from competitors (32%) and enhanced stakeholder engagement (29%). While only one in five (21%) cite boosted profits as a key benefit of their sustainability endeavors.
Innovation, Collaboration, and Technology are Critical
Sustainability Insights: Learning from Business Leaders explored innovation, collaboration and technology as important components of the disruptive approaches needed to drive the next era of sustainable business. This is essential if organizations are to achieve the breakthroughs needed to accelerate progress towards improved sustainability.
Leading companies are increasingly turning to collaboration to maximize resources and intelligence. Nearly a third of businesses (32%) now work with competitors to seek out ideas for sustainability innovation, and a similar number (27%) work with NGOs and civil society. Over the next three years, businesses say that partnerships will be important contributors to driving sustainability success.
More than a quarter of companies (28%) believe technological innovation will also drive the success of their sustainability strategy in the next three years. Additionally, 61% say that technological developments contribute to sustainability-related innovations, and 41% say they’ve successfully harnessed technology to improve their environmental impact.
From: Coca-Cola Enterprises
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