Study: Executives acknowledge the significance of sustainability, yet they are also aware of the challenges in achieving outstanding outcomes
8 February 2024
The report "The Gap in Sustainable Value Creation" by Salesforce, in partnership with GlobeScan, highlights significant challenges businesses face in achieving their sustainability goals. Despite 93% of senior leaders across various sectors recognizing the importance of sustainability for commercial success, there's a notable discrepancy in its integration and execution within core business operations. Only 37% of senior leaders view sustainability as "very integrated" into their business, and a mere 23% of senior management teams allocate significant capital towards sustainability initiatives.
The research identifies four primary gaps hindering the effective integration of sustainability into business strategies:
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Capital Gap: Although a majority acknowledges the importance of sustainability, the allocation of necessary capital is insufficient. About 50% of senior management teams focus on sustainability risks, opportunities, and impacts, but only half receive adequate funding to address these areas effectively.
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Implementation Gap: Sustainability is often associated with enhancing brand reputation rather than operational value creation. This perception-based approach limits the tangible, monetary valuation of sustainability efforts and their integration into business operations.
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Integration Gap: The lack of collaboration across functions, such as finance and technology, impedes sustainability efforts. Despite the recognized importance, only 37% believe sustainability is deeply integrated into their business, highlighting a disconnect between sustainability teams and other core business functions.
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Data Gap: High-quality data on sustainability performance is crucial yet lacking. While 80% of respondents emphasize the importance of quality data for realizing sustainability's full value, only a small fraction report having access to "very high-quality" data. This gap makes it challenging to evaluate how sustainability initiatives contribute to value creation.
The report, co-authored by experts from the University of Oxford and NYU Stern and based on a survey of over 200 professionals, including 76 C-suite executives, underscores the need for improved capital allocation, implementation strategies, cross-functional collaboration, and data quality to bridge these gaps. Enhancing these areas is essential for businesses to effectively integrate sustainability into their core operations and strategies, thereby unlocking its full commercial and environmental potential.
