Businesses not acknowledging sustainability business benefits

MELBOURNE, AUSTRALIA: The majority of companies are not taking significant action to manage their operations more sustainably because they fail to see the business benefits they could achieve by doing so, according to Ovum.

In a new report, the independent technology analyst states that while some larger companies have taken great strides in the area of sustainability, most view it as drag on business results, rather than a vehicle for improving them.

Warren Wilson, Ovum analyst and author of the report, commented: “Businesses are facing pressure from a growing list of groups to manage their operations more sustainably, and this is rapidly becoming a mandatory requirement, not an option. Around the globe, thousands of companies have heard the call and have responded with sustainability initiatives of various types. However, most have yet to take any significant action.

“We believe this reflects a failure to recognise some of the key arguments for adoption. These include business benefits such as simplifying regulatory compliance, cost reduction, streamlined business processes and making the company more attractive to customers, investors and the public.”

The report advises businesses to recognise that sustainability pressures will only grow, and to implement initiatives that will help them meet obligations and also deliver tangible business benefits, both financial and competitive.

Wilson added: “The business case for managing companies more sustainably is strong because it can help companies improve their results even as they ‘green’ their operations. Businesses that move quickly can not only reap direct benefits, but also gain advantage over competitors.”