More than two thirds (68%) of Australian businesses see a ‘moderate’ to ‘strong’ relationship between sustainability and profitability, a new study by SAP has found.
The study, which surveyed 250 business leaders in Australia, found that a similar number (67%) see sustainability strategies as contributing to revenue or profit growth to a ‘moderate’ or ‘strong’ degree.
Increased investment
‘Australian organisations say their overall business performance is intrinsically linked to treating sustainability as a strategic priority – and are boosting their investments as a result,’ SAP said in a statement.
Almost half of Australian businesses (49%) say that they plan to increase their investment in sustainability over the next three years, which is 11% higher than those that answered likewise a year ago (38%).
Other findings from the study indicate that 69% of Australian firms see a ‘moderate’ or ‘strong’ increase in the efficiency of business processes from sustainability activities, while six in ten (60%) expect to see a ‘positive financial return’ from their sustainability investments over the next decade.
This is largely on a par with global respondents’ outlook (61%), SAP added.
Read more: Australian firms ‘stepping up’ ESG efforts, study finds
‘No longer separate’
“Sustainability can no longer be considered separately to the wider financial performance of the business, because it is increasingly clear that more sustainable organisations are more successful organisations,” commented Gina McNamara, regional chief financial officer, SAP Asia Pacific & Japan.
“Already, more than one in ten (11%) Australian businesses say sustainability is material to their business results, and another 36% say it will be within five years. Now is the time to combine financial and environmental decision-making in every business process, so we treat carbon data the same way we treat financial data.”
At the same time, challenges remain, with return on investment from sustainability actions cited as an issue for 40% of Australian businesses, above the global average of 33%.
Other potential challenges cited include a lack of funding (33%), lack of an environmental impact strategy (32%), and lack of expertise (32%).
More findings from the study can be found here.
In this new era of sustainability, businesses need to adapt. Keep up to date with the latest developments at www.sustainabilityonline.net.
