Are Companies Actually Executing Sustainability Strategy?

International consulting and technology leader IBM is exploring the reality of sustainability in companies. Whilst many have innovative sustainability strategy, the reality of the action isn’t so reassuring. Beyond checking the box – how to create business value with embedded sustainability is the title of IBM’s new study highlighting the disconnect between intention and impact of sustainability, exploring the perspectives from 5,000 global C-Suite executives across 22 industries and 22 countries. 

IBM reports that whilst 76% of executives agree that sustainability is central to their business, yet only 30% — up from 10% a year ago — make significant progress in executing their sustainability strategy. Almost half of executives say they’re struggling to fund sustainability investments, with 60% making trade-offs between sustainability and financial outcomes. 

“An organisation’s approach to sustainability may be holding it back. There is no quick fix. Sustainability requires intentionality and a shared corporate vision,” says Oday Abbosh, Global Managing Partner, Sustainability Services, IBM Consulting. 

“Sustainability needs to be part of the day-to-day operations, not viewed only as a compliance task or reporting exercise. By embedding sustainability across their business, organisations are more likely to drive internal innovation, attract and retain skilled talent, and be better positioned to deliver both positive environmental impact and financial outcomes.”

What is the reality of corporate sustainability?

Global consulting leader IBM helps clients in more than 175 countries to capitalise on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely.

Key findings from the study include:

• 69% of executives surveyed say that sustainability needs to be a higher priority in their organisation. 
• 47% of executives surveyed struggle to fund sustainability investments. 
• 60% of executives say they have to make trade-offs between financial and sustainability outcomes.
• 43% spend more on sustainability reporting than sustainability innovation. 
• Organisations that embed sustainability are 75% more likely to attribute greater improvement in revenue from their sustainability efforts. These organisations are also 52% more likely to outperform their peers on profitability.
• 64% of executives surveyed agree that generative AI will be important for their sustainability efforts.

 This study provides insights for executives globally to boost their sustainability activity, not just strategy. Based on the study, IBM recommends that companies embed sustainability into the core of operations, supporting a more intentional and strategic approach rather than treating sustainability as an add on. 

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