The link between sustainability and profits remains unclear

2010-02-09 08:53
Hong Kong--(뉴스와이어)--Just 24% of executives in an Economist Intelligence Unit survey believe there is a strong link in the short term (1-2 years) between financial performance and commitment to sustainability. However, 69% believe the link is strong in the long term (5-10 years), and companies worldwide are moving sustainability principles into their core policies and practices. Most will increase that emphasis over the next three years.

The survey—conducted in December 2009 and January 2010 among over 200 finance and corporate social responsibility executives—is at the centre of Managing for sustainability, a new report from the Economist Intelligence Unit. The study, which was sponsored by Enel, explores how companies view sustainability and how they are incorporating these principles into their daily operations. The report defines sustainability as operating in a way that preserves the long-term productive capacity of the natural and social environments.

Key findings include:

· The poor business climate is an obstacle to pursuing sustainability. Thirty-four percent of respondents said their firms’ immediate financial goals were a more pressing priority than sustainability. Not surprisingly, this represents the leading obstacle to embracing sustainability. Lack of consensus and clarity are also obstacles.

· Executives nonetheless increasingly see opportunity in sustainability. Eighty-seven percent agree that sustainability will become more important in the coming three years. Of these, 46% strongly agreed. While sustainability represents a risk for some, others see opportunity.

· Companies are embedding sustainability into various corporate functions. Executives report including sustainability into a variety of corporate functions, including supply chain relationships (29%), improving energy efficiency (38%), educating employees on sustainability (32%), and engaging employees in sustainability related activities (30%). Fifty-four percent say sustainability efforts have been led by top management, which may explain the wide reach of such initiatives.

· But only around half of companies report their progress on sustainability. Just 49% of respondents said they report progress in meeting their environmental sustainability goals. Slightly over half (53%) report their progress on meeting social sustainability goals. Nonetheless, executives say that stating goals and reporting progress towards those goals are essential in embracing sustainability.

· Cash incentives are not widespread—but are growing. Employee recognition programmes are the most widespread employee incentive, cited by 38% of respondents. Just 18% of firms link pay to sustainability indicators, but anecdotal evidence suggests this practice is growing among leading companies.

웹사이트: http://www.eiu.com

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Joanne McKenna
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