**London**: A recent study reveals that only 37% of companies effectively integrate sustainability into decision-making. It critiques the compliance-driven approach to sustainability reporting and proposes a collaborative strategy involving finance, IT, and sustainability teams to enhance organisational effectiveness and societal impact.
Corporate sustainability remains a significant concern for businesses worldwide, yet recent findings indicate that only 37% of companies are successfully embedding sustainability into their decision-making processes. A study conducted by Salesforce, GlobeScan, ERM, Accounting for Sustainability (A4S), and SustainableIT.org highlights the disconnect between corporate commitments to sustainability and the actual execution of these initiatives.
The survey sampled 320 business leaders spanning corporate finance, IT, and sustainability functions. While 67% of respondents acknowledged sustainability as “very important” to their success, a considerable gap exists in practical integration. Finance and IT departments, which are crucial for implementing sustainability strategies, often lack the necessary expertise. Alarmingly, less than one-third of leaders in these areas feel that their teams possess strong sustainability competency.
Adding to the concern, the study found that sustainability reporting remains predominantly compliance-driven, with 42% of respondents viewing mandatory reporting as more of a distraction than a genuine tool for value creation. This reactive approach could hinder effective sustainability strategies, thereby limiting the potential benefits for organisations.
Companies identified as “Advanced Integrators,” those that successfully implement sustainability measures, present compelling results. They are reported to be 1.5 times more likely to engage in high-value sustainability actions that drive sales growth. Furthermore, they are 2.8 times more likely to possess high-quality sustainability data, which is essential for informed decision-making. These successful organisations demonstrate a culture of collaboration that significantly enhances data sharing between their finance, IT, and sustainability teams.
To tackle these issues, the report proposes a three-pronged approach encapsulated in what is termed the Sustainability Value Triangle. This strategy emphasizes collaborative efforts among Finance, IT, and Sustainability teams, outlining specific actions for each:
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Finance is encouraged to build robust business cases for sustainability investments, track sustainability return on investment (ROI) beyond short-term profits, and take shared responsibility for sustainability strategies.
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IT should work towards developing integrated data systems for sustainability reporting, utilise artificial intelligence to enhance performance tracking, and ensure centralised access to sustainability insights across various teams.
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Sustainability teams are advised to transition from merely bolstering brand reputation to showcasing measurable business impacts. Furthermore, they should focus on improving cooperation with finance and IT and shift their reporting emphasis from compliance towards actionable insights.
The research underlines the necessity for eliminating silos between these critical functions. Companies that embrace sustainability in their decision-making and data strategies not only enhance their competitive advantage but also contribute more effectively to the broader societal goals associated with sustainability.
Looking ahead, the Sustainability Value Creation Partnership remains committed to fostering business-focused sustainability solutions, which could encourage organisations to move past mere commitments toward actionable, real-world impacts.
Source: Noah Wire Services
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