A brand new company sustainability survey places chilly, exhausting numbers to a few of my most cynical assumptions about company sustainability. Specifically: Whereas company leaders wish to be extra sustainable, they don’t know the way to do it, they aren’t allocating the assets wanted they usually’re overstating the influence of the initiatives they’ve in place.
The survey, carried out by the Google Cloud crew, polled virtually 1,500 VP and C-Suite executives in 16 nations within the Americas, western Europe and Asia. It included executives throughout sectors, together with monetary companies, heavy business, logistics, telecommunications and manufacturing.
Right here’s what it discovered:
Firms are greenwashing — they usually understand it
The time period greenwashing is thrown round so much. And, this survey suggests, with good purpose.
Nearly 60 p.c of executives admit that “inexperienced hypocrisy exists,” and 72 p.c consider “most organizations in my business can be caught greenwashing if investigated completely.”
What’s extra, 93 p.c of organizations discuss sustainability targets externally — whereas solely 22 p.c are measuring sustainability packages towards targets.
The important thing causes they’re overstating their efforts? It’s good for enterprise. Round 85 p.c of executives cite clients or purchasers turning into extra vocal about wanting to interact with sustainable manufacturers, so the executives wish to capitalize on that.
Firms wish to be extra sustainable
Whereas their discuss is greater than their stroll, the survey discovered {that a} key barrier to upleveling sustainability efforts is lack of know-how and instruments. Nearly three-quarters of executives wish to advance sustainability efforts — however they don’t know the way to really do it.
Right here’s the excellent news: In response to the evaluation, 96 p.c of the firms surveyed had no less than one sustainability program in place (which stays unchanged from 2022).
Nevertheless the influence of many of those initiatives aren’t clear. For instance, virtually half “implement sustainable workplace insurance policies,” 45 p.c “plan to scale back power / migrate to renewable power” and 42 p.c “run a recycling program.”
Whereas none of those are fallacious, in addition they are unlikely to maneuver the needle on the local weather disaster. Many of those packages point out marginal, inner ambitions, reasonably than the transformational shift wanted.
But in addition, companies like cash
The macroeconomic image is affecting sustainability progress, says the survey, as many executives level to stress from exterior events to chop corners on sustainability initiatives to prioritize income.
The outcome: The variety of new sustainability packages transferring into implementation is down 8 p.c from 2022, in accordance with the survey.
This additionally manifests in leaders striving to do extra with much less. In response to the survey, 78 p.c of executives agree “an unsure financial future forces my group to supply higher sustainability outcomes with much less funds.”
This interpretation of our economic system is disheartening, if not shocking. I usually hear from company leaders to do extra (in each bull and bear markets) — so long as it doesn’t come at a worth premium. Value is commonly the excuse companies use to keep up methods which are inconsistent with a protected local weather future, a calculation that always ignores the benefits of being an early mover — together with effectivity enhancements, improvements that supply a vanguard towards rivals, and sustaining a secure ecosystem on which to do enterprise.
My two cents: it’s incumbent upon companies to beat price limitations by investing in clear applied sciences to assist the speedy adoption of latest applied sciences. Meaning making commitments early (to sign market demand) and doggedly working to include cleaner supplies and processes all through the worth chain.
The upshot
Whereas it’s simple to get pissed off with companies deliberately overstating sustainability efforts to spice up their model fame, it’s hopeful to see what number of have the will to do higher. Meaning holding organizations to account requires only a few simple steps.
First, don’t give companies a free cross. Learn sustainability and local weather claims with an arched eyebrow, and by no means assume the work is full or achieved.
Second, let’s develop the instruments, networks and data wanted to push everybody to do extra, sooner.
In spite of everything, addressing local weather change isn’t an train in semantics.
