The business case for adopting global standards in sustainability is growing stronger according to a new report
Finding companies that fit with investors’ responsible investing goals is less challenging than it used to be.
That’s because so many of the world’s large organizations are committed to increased sustainability as the financial returns in doing so becomes clearer.
Research released recently by NTT, a consultancy that works with Fortune 500 firms to help them embrace new business models, found that 44% of companies experience improved profitability because of sustainability.
Seven in ten respondents said that building sustainability is the top priority of its board.
"As the global population refocuses its attention on the health and wellbeing of people and the planet, we have seen a renewed commitment from organizations to implement and advance sustainable business practices," said Vito Mabrucco, head of global marketing at NTT. "At the same time, the health of people versus the health of profits is not an either-or-decision; sustainability and profitability are becoming mutually reliant."
The pandemic has certainly played a major role in a mindset shift for companies; 47% of respondents said the last two years have elevated the importance of sustainability goals.
Despite this corporate desire to achieve sustainability, there remains doubt – among investors, for example - over how much responsible investing can boost returns.
How sustainability is boosting profits
The research also reveals how companies are improving their bottom lines by embracing sustainability.
The top results of their initiatives were decreased costs through improved efficiencies (33%), greater innovation and/or new business models (32%) and increased revenue growth (24%).
Just 12% of respondents said that sustainability is mostly “lip service” while almost 4 in 10 said their customers, employees, shareholders, and communities expect them to drive positive change.
