Go Green: CEO study says sustainability is critical to success

In spite of the recent economic downturn, an overwhelming majority of corporate CEOs—93 percent—say sustainability will be critical to the success of their companies. Furthermore, CEOs believe a tipping point could be reached within a decade that fully meshes sustainability with their core business.  

These are among the key findings of a survey of 766 CEOs around the globe recently released by the United Nations Global Compact and Accenture. In addition to an online survey, the study included interviews with 50 CEOs.

According to the study, 80 percent of CEOs say the economic downturn has raised the importance of sustainability. As businesses address the financial crisis, sustainability is being recognized as a source of cost efficiencies and revenue growth. Additionally, many companies view sustainability as a critical element in driving growth in new markets.

The survey indicates that in 2010, businesses are taking sustainability more seriously. In a similar 2007 survey, 50 percent of respondents said that sustainability issues had become part of their company’s strategy and operations, while that number jumped to 81 percent this year.

CEOs  say several conditions must be met before sustainability can be fully integrated into a company’s core business, including:

•  Shaping consumer tastes to build a stronger market for sustainable products.
•  Training management, employees and the next generation of leaders to deal with sustainability issues.
•  Communicating with investors to create a better understanding of sustainability’s impact.
•  Measuring performance on sustainability.
•  Working with governments to shape clearer regulation and create a level playing field.

According to the survey, 72 percent of the respondents identified three corporate attributes  —brand, trust and reputation—as the primary considerations for acting on sustainability.

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