Businesses that embed sustainability into their core strategies are 40% more confident in their business outlook, according to a new study by EY.
According to the fifth edition of EY’s Long-Term Value and Corporate Governance Survey, businesses face ‘mounting pressure’ to prioritise sustainability strategies that are better integrated across their company structure, as well as create tangible business value.
‘Central to business strategies’
“By embedding sustainability at the heart of decision-making and leveraging the latest technologies to drive change, businesses not only bolster resilience but also position themselves for success,” commented Julie Linn Teigland, EY EMEIA area managing partner and EY global vice chair – Alliances & Ecosystems. “The call to action is clear: sustainability must be central to business strategies today and into the future.”
According to the survey, some 91% of businesses report pressure from investors to improve sustainability, while close to four fifths (78%) report similar pressure from activist groups.
Reputational damage is a key concern for businesses, with 39% revealing that they have faced media backlash over their sustainability efforts. Where companies have fully integrated sustainability strategies in place, this level of media backlash drops to 6%.
Elsewhere, some 57% of companies say sustainability initiatives are the first to be cut during cost pressures, however among those with embedded sustainability strategies, this stands at just 4%.
Some 94% of these so-called ‘sustainability integrators’ report that their company’s board is ‘effective in approving capital expenditure for sustainability projects’, compared to an industry average of 28%.
‘Boost resilience
“Companies must act now to embed sustainability or risk being left behind,” added Andrew Hobbs, EY EMEIA public policy leader. “Embracing sustainability means understanding its tangible commercial benefits while also putting serious investment plans in place. Those who take the boldest steps will not only boost resilience but also gain the confidence to succeed.”
EY recommends five key actions for businesses seeking to bolster their sustainability integration – foster unified leadership on sustainability commitments; create a culture of shared responsibility; educate functions on sustainability value; proactively invest; and use technology to scale sustainable business functions. Read more here.
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