Many companies are committed to policies to ensure environmental, social and governance sustainability — but a growing minority remain skeptical about their benefits, according to a report from the Economist Intelligence Unit.
New Business Models: Shared value in the 21st century, commissioned by Enel Foundation, finds that 66 percent of companies believe there is a link between sustainability and long-term financial performance (see chart). More managers also understand the wider importance of sustainability and increasing efforts to embed it into their strategies.
The report also shows an increasing minority of business managers who do not believe there is a link between sustainability and long-term financial performance. This is up to 11 percent — an increase from 6 percent in a similar survey carried out in 2011. More managers also say they are facing “sustainability obstacles” in their business, with 52 percent saying immediate financial goals take precedence over long-term sustainability.
PwC’s 17th Annual CEO Survey, published earlier this year, found chief executives recognize the importance of measuring businesses’ whole footprint — environmental, social, fiscal and economic — but most companies still only measure and report on their financial performance.