Most European Businesses Say There Is No Incentive To Become More Sustainable, According to New Report

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by | Nov 30, 2021

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On Tuesday, global technology provider Ricoh Europe released a report on the attitudes of European business leaders toward making their companies more environmentally friendly. The research was carried out by Opinion Matters, which polled 1,500 decision makers across Europe on behalf of Ricoh Europe.

Results were disappointing for the cause of sustainability. Sixty percent of business leaders reported lacking an incentive to reduce their environmental impact. One in four believed such a task was impossible. These findings mirror a survey published earlier this month in which 94% of respondents stated they “can only achieve sustainability goals if it benefits their organization’s bottom line.” 

Sixty five percent of businesses do recognise the importance of environmental sustainability for their competitiveness in the market in which they operate, and more than two thirds (67%) of respondents said their employees care more about how environmentally sustainable the company is now compared to five years ago. Yet 65% claim they are unsure about, or don’t have the resources to achieve meaningful change. Only about a quarter (27%) of business leaders have set long-term sustainability goals.

This cited difficulty about where to begin comes despite a significant push by the EU to help businesses improve their ESG performance, including making funding and assets available through projects such as InvestEU and Digital Europe. This suggests a voluntary approach to sustainability is insufficient and government regulations are needed if Europe is to meet its climate goals outlined in the Paris Agreement.

In addition to mandating sustainability improvements, Ricoh Europe CEO David Mills advocates demonstrating the financial gains involved: “There will be many areas where improving operations or productivity overlaps with ESG goals, so it can be the ideal place for businesses to start.

Discussing the business logic of sustainability improvements, he added:

“Rather than being a hindrance, aligning to the SDGs to improve environmental and social performance is a competitive advantage. The stark reality is that those businesses that do not contribute to improving environmental and societal outcomes will ultimately be ignored by the market.”

Mills emphasized the importance of transparency and accountability in achieving sustainability, stating, “Making any changes towards ESG goals needs to be complemented with a clear framework and commitment to measurable success.”

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