July 7th, 2010

Do CEOs Think Sustainability is Important?

A recent report by Accenture and the U.N. Global Compact surveyed more than 750 CEOs asking them to what extent companies are embracing green issues and preparing for a future where sustainability is central to business.

According to the report, in the face of rising competition, technological change, and economic depression, corporate commitment to principles of sustainability remains strong. Roughly 93 percent of CEOs now see sustainability as important to their company’s future success. This is a drastic improvement from 3 years ago, when a previous study was released, and sustainability was just emerging on the edge of issues for businesses to address. Now almost three quarters of CEO’s agreed that “strengthening brand trust and reputation is the strongest motivator for taking action on sustainability issues”.

With the 2007 report, education was the top development issue on the minds of CEOs. Concerns about education are still prevalent in 2010, but climate change was second at 66 percent as concern about greenhouse gas emissions continues to grow. I found it interesting that the report states that many CEOs are focusing on resource scarcity, particularly water, and public health issues as key issues of concern. This is comforting when most people believe that in this current recession many CEOs are only focusing on shareholders and immediate profits.

The report findings indicate three trends that are shaping ways that CEOs are approaching corporate sustainability efforts:

1.    “The Consumer is (or will be) King”. Consumers of all types are driving company’s strategies for developing sustainable products and services, even above employees and government.

2.    “Importance of Technology and Innovation”. 91% of CEOs reported that their company would employ new technologies like social media and renewable energy to help meet their sustainability goals over the next five years.

3.    “Collaboration is Critical”. Many CEOs confirmed that partnerships and collaboration with suppliers, NGOs, and government agencies are now critical elements of their approach to sustainability issues.

The report states that 54% of CEOs believe sustainability will be fully integrated across their global business in 10 years, while 80% believe it will take 15 years.

In order to accelerate the integration of sustainability into core business, CEOs believe that a number of conditions need to be put in place.

1.    Actively shaping consumer and customer awareness, attitudes and needs.
2.    Generating new knowledge, skills and mindsets for sustainable development.
3.    Leading the creation of an investment environment more favorable to sustainable business.
4.    Embedding new concepts of value and performance at the organizational and individual levels.
5.    Creating a clearer and more positive regulatory environment for sustainability.

The survey states widespread agreement among CEOs about what the next era of sustainability will be like. Stating “It is one where sustainability is not only a separate strategic initiative, but something fully integrated into the strategy and operations of a company”. I think this is a key statement that SDialogue fully promotes through their actions and professional relationships. I look forward to the development of this new era of sustainability and hope for the continued executive commitment from CEOs.

Want to read more from this report? Check out: http://www.greenbiz.com/sites/default/files/Accenture_UNGC_Study_2010.pdf