2Sustain

Corporate sustainability leaders realize that sustainability initiatives have significant strategic value, but most also feel that measurement for these initiatives are lacking, according to new research co-sponsored by Crowe Horwath LLP, one of the largest public accounting and consulting firms in the U.S., and the Center for Business Excellence (CBE) at Miami University’s Farmer School of Business.

The survey polled 178 sustainability leaders and found that:

• 72 percent of respondents believe that boards of directors place a high priority on sustainability,

• 74 percent say their organizations link their sustainability initiatives to company strategy, and

• More than 50 percent of the respondents report that their sustainability initiatives have led to operational efficiencies.

• But , only 12 percent say that sustainability is fully embedded in the strategic actions and decision-making processes, and

• More than half think measurement for the initiatives is lacking.

There was a similar disconnect with regard to sustainability reporting:

• More than 80 percent of survey respondents issue sustainability reports designed to enhance their reputations with the public, customers, employees and suppliers, and
• Nearly seven out of 10 organizations report their sustainability initiatives publicly.

• But, 48 percent say that they do not have an independent review of the information presented in their sustainability reports.

“Reporting sustainability measures and issuing qualitative disclosures without a sufficient link to how these activities lead to long-term value creates a risk of efforts being perceived as ‘greenwashing’,” says CBE co-director Dan Heitger.

According to Heitger, some companies may focus more on the marketing of “green” activities rather than implementing business strategy and practices that improve the long-term viability of the environment and society.

It was encouraging to see that most organizations in this survey (nearly 70 percent) do not expect a decrease in annual spending on sustainability initiatives, despite the recession. Other research has shown similar results.