Sustainability Initiatives Cut Costs by 6-10%

June 9, 2009

Email this story Print this post Add your comments

Sustainability initiatives have become a “must have” business imperative for companies, despite budget and return on investment (ROI) challenges, according to a new study from Aberdeen Research.

Aberdeen Group has benchmarked over 200 enterprises involved in sustainability initiatives for its ROI of Sustainability survey. The research company says that top performers excel at matching potentially hard-to-grasp concepts like environmental and social stewardship to actionable and measurable improvements to their bottom lines.

However, 46 percent of companies surveyed report that budget challenges remain an impediment to sustainability initiatives and 42 percent still find it difficult to demonstrate quantified business value and return on investment (ROI) in order to make a business case for sustainability.

Similarly, nearly 55 percent of respondents to a recent Panel Intelligence Quarter Sustainability Tracking study observe no financial criteria (i.e. ROI, payback period) when evaluating sustainability projects for their respective organizations.

Aberdeen used six key performance criteria to distinguish best-in-class companies, with top performers achieving between 6 percent to 10 percent reduction in a variety of costs while also making strides in retaining customers.

A key finding reveals that best-in-class companies reduced their energy costs by 6 percent, compared to an industry average of a 4 percent increase. These companies also reduced their carbon footprint by 9 percent and paper costs by 10 percent. They also cut both facility and transportation/logistics costs by 7 percent.

Other key findings show that top performers experienced a 16 percent increase in customer retention rates while driving sustainability-related costs down by an average of almost 8 percent across the board. Best-in-class companies are also 52 percent more likely to incorporate sustainability metrics into value chain performance management KPIs, and to use sustainability to guide major portions of their corporate strategy. In addition, 74 percent of these companies have an organization-wide sustainability policy compared to 58 percent for all others.

Email this story Print this post Add your comments

Advertisers

Enhance Sustainability. Improve Profitability.

Learn how at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Best Practices: Product Environmental Compliance

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

peter dublin on California City’s Green Building Ordinance Applies to Commercial Buildings
"Why energy efficiebnt regulation on buildings –..."

Environmental Leader