While 83% of global firms increased their investment in sustainability last year, the reasons behind this investment, and the intensity with which they invest, varies ‘dramatically,’ Deloitte has said.
In a new report, Strategic sustainability drivers: A framework for adaptive sustainability strategies, Deloitte sets out a framework for understanding why businesses pursue sustainability, depending on ownership structure, level of maturity and business model.
As it notes, sustainability priorities tend to be shaped by internal characteristics, rather than a single set of external expectations.
‘Increasingly prescriptive’
‘The sustainability discourse has become increasingly prescriptive,’ it says. ‘Industry associations, consultants, and regulators publish lengthy frameworks outlining what companies should do: reduce carbon emissions, improve diversity, strengthen governance, enhance supply chain transparency, and so on.
‘All pertinent and important topics that society must mitigate and adapt. Yet this advice often misses the mark.’
As it notes, a startup with $5 million in revenue cannot be expected to implement the same sustainability infrastructure as a $50 billion multinational. Similarly, a business with a decades-long horizon has different sustainability priorities than a firm seeking a stock market exit.
‘Sound business sense’
In conducting its research, Deloitte surveyed more than 2,100 c-suite executives, and found that most are either transforming their business model around sustainability, or embedding it throughout their organisation – all driven by the recognition that ‘sustainability makes sound business sense, rather than being pursued merely for its own sake’.
Regional drivers are also notable – in Switzerland, for example, 70% of executives expect climate change to have a significant impact on strategy and operations over the next three years, compared with a global average of 60%.
As the report suggests, the sustainability imperative is ‘not universal’ and is in most cases determined by the tailored context of each organisation – the intersection of ownership structure, company maturity, and business model.
‘The strategic implication is clear. Sustainability strategy must be tailored to your company’s specific profile,’ as the report puts it. Read more here.
