How KPMG Aims to Reframe Sustainability for Business Growth
Sustainability is no longer a question of “doing the right thing”, it is becoming a strategic driver of growth, resilience and competitiveness according to KPMG
A report from KPMG, Reframing Sustainability, supported by research from Savanta, provides insights into how businesses can overcome barriers and reframe sustainability as an opportunity for innovation and commercial success.
The case for change
According to the survey of 200 senior UK decision makers conducted by Savanta, 97% of businesses believe it is important to transition to a more sustainable operating model, with 95% already allocating capital and resources towards sustainability initiatives.
However, challenges remain.
Key barriers identified include:
- High upfront costs (44%)
- Difficulties in measuring and reporting sustainability impacts (36%)
- Lack of regulatory incentives (31%)
- Lack of immediate return on investment (31%).
These findings suggest that while intent is strong, execution remains complex, requiring companies to shift how they articulate and deliver value.
“Behind the opportunity to create new value is a foundational need to protect the value we have already created,” says Richard Andrews, Head of ESG, KPMG in the UK, in the Reframing Sustainability Report.
Challenging the ROI timeline
The perception that sustainability initiatives only pay off in the long term is changing.
KPMG’s report reveals that 92% of leaders expect sustainability to improve profitability within one to three years, while 98% anticipate longer-term gains over five to ten years.
Examples across industries back this up: UK retailers are already saving millions through energy efficiency upgrades, while property developers are commanding rental premiums on green-certified buildings.
Financial incentives, such as sustainability-linked loans, are also helping reduce borrowing costs in the short term.
Collaboration as a catalyst
Another major theme highlighted is the importance of collaboration and shared learning.
The report shows that 86% of businesses believe cross-sector collaboration significantly influences the commercial benefits of sustainability initiatives.
Partnerships between corporates, regulators and technology providers are already accelerating the rollout of low-carbon solutions and supply chain resilience.
“We see things in three pillars, the first being operational excellence,” says Esohe Denise Odaro, MD Head of ESG & Sustainability, PAI Partners, in the Reframing Sustainability Report.
“The second element is positioning, a critical element of providing competitive advantage. The third is resilience.
“How do we keep those companies operating successfully in business for the longer term?”
Data, governance and strategy
Savanta’s findings underline that 84% of organisations want better access to high-quality sustainability data to build stronger business cases.
This is crucial to improve reporting accuracy, investor confidence and decision-making.
“Commerciality is at the heart of everything that we do,” says Sacha Sadan, Director of Sustainable Finance, Financial Conduct Authority, in the Reframing Sustainability Report.
“So, when we speak about sustainability, we talk about things that are financially material and not just nice to do or fluffy.
“I think it’s important that people realise the difference.”
Embedding sustainability into core business strategies, rather than treating it as a stand-alone exercise, was cited as another essential step.
