2Sustain

Here’s the good news: Nearly half (47 percent) of the 500 senior executives who participated in a recent survey said they plan to invest up to 50 percent more to make their businesses more sustainable over the next decade.

However, that one finding only tells part of the story.

Unfortunately, the report, titled Harnessing Change: Preparing for Business in the Next Decade, also found that the recession has left British boardrooms deeply divided on overall issues of sustainability. In particular, the research reveals that 46 percent of the business and public sector leaders polled plan to prioritize sustainability over the next two years, but more than a third (36 percent) admits they will turn away from it. A disappointing one in three argues that they don’t have the expertise to quantify and justify the benefits of sustainability –which undoubtedly has contributed to its inability to gain traction in the boardrooms.

But, “turning away from” sustainability is short-sighted. As other studies have shown, many CEOs now realize that sustainability issues will be critical to the future success of their business. These executives are beginning to understand that the consumer concept of “value” is expanding to reflect an awareness of both environmental and even broader CSR goals. They recognize that both consumers and investors are now seeking out companies that act responsibly. Successful businesses are capitalizing on this trend by re-working their traditional business models to include CSR goals, and consequently, these businesses are positioning themselves to succeed.

“The recession should have prompted all organizations to see opportunities for cost reduction in improving sustainability, but it hasn’t, yet,” says Tom Savigar, the report’s author and director of The Future Laboratory. “Sustainability strategies that encompass the environment, governance and society, will come to define growth in the future, but it requires long-term thinking, with the commercial return on investment not realized immediately. There will be those that will be reluctant to take on board a long-termist view; but indecision and hollow sustainability promises will increasingly come under fire from legislators and consumers.”

More intriguing insights from the report, which was commissioned by O2, are available here.