Corporate sustainability drives innovation but leaves savings untapped
A significant shift in corporate sustainability is underway. Ninety-two percent of organizations have reaffirmed their net-zero timeline commitments. Meanwhile, 82% plan to boost investments in circularity and renewable energy by 2026.
The push towards sustainability is driving innovation and opening new markets. Sixty-nine percent of executives report that future-proofing initiatives are spurring innovation within their organizations. Moreover, 59% have accessed new markets by introducing more sustainable product designs.
However, the transition is not without challenges. Forty-nine percent of organizations have already seen a positive return on investment from circularity and renewable energy initiatives. Yet, 79% are not fully exploiting potential savings from these future-proofing practices. An airline, for instance, saved $110 million annually by reducing fuel consumption by 45 million gallons through operational efficiencies. Despite this, many organizations are leaving money on the table.
Business value is a key driver for sustainability decisions, ranking second in importance. Interestingly, only 25% of organizations anticipate increased profitability as the primary benefit of future-proofing practices over the next five years.
Organizations are increasingly embracing sustainability, with most reaffirming their net-zero commitments and planning increased investments in circularity and renewable energy. While these initiatives drive innovation and open new markets, there's a clear opportunity for organizations to better capitalize on available savings and benefits.
