Why 98% of Companies Do Not Achieve Their Sustainability Goals

Jan. 26, 2017
Only 2% of corporate sustainability programs achieve or exceed their aims, compared to 12% of other corporate transformation programs.

Sustainability has become a top corporate goal due to the fact that both customers and employees require companies to be diligent in environmental stewardship.

However,  efforts to develop follow through on these goals are lacking.

A new report from Bain & Company, "Achieving Breakthrough Results in Sustainability," finds that only 2% of corporate sustainability programs achieve or exceed their aims, compared to 12% of other corporate transformation programs.

“Too often, sustainability gets stuck in first gear, while the need for change is accelerating,” said Jenny David-Peccoud, who leads Bain’s Sustainability & Corporate Responsibility practice.

“Once companies learn to navigate common roadblocks, they open the door to a transformational journey and the potential to leave a legacy, prompting companies to redefine what it means to be a leader in their industry,” David-Peccoud added.  

Bain found that many employees do not see sustainability as a business imperative, with more than 60% of survey respondents citing public reputation as the key driver for sustainability change. Employees also deprioritize sustainability because of perceived business trade-offs and an absence of incentives.

Lack of resources and competing priorities are the two top obstacles employees say threaten to derail sustainability programs, and less than a quarter of respondents say they are held accountable for sustainability through incentives.

Bain recommends four guidelines to beat the odds and deliver lasting sustainability gains.

  • Make a public commitment. Many executives hesitate to make their goals public, fearing reprisal from third-party watchdogs if they fall short. Sustainability leaders manage that downside risk by engaging proactively with stakeholders. They affirm that the benefits of public commitments significantly outweigh the risks by creating a shared sense of mission and helping companies stay the course during difficult phases. 
  • CEOs: lead by example. Our research shows senior leadership support is the most important factor contributing to success, and visible actions—not just words—make the difference. CEOs create the vital lift-off energy for sustainability efforts and regenerate momentum throughout the journey.
  • Highlight the business case. Sustainability leaders help employees understand the business case that links sustainable products and processes with success, and there’s no shortage of proof. Growth for brands with a demonstrated commitment to sustainability was four times faster than non-sustainable products in 2015, according to the Nielsen Global Corporate Sustainability Report. 
  • Hardwire change through incentives and processes. Companies that achieve ambitious sustainability goals embed sustainable behaviors and processes throughout the business and make line managers responsible for delivering results. For example, some companies change their capital-approvals process to include sustainability factors, or increase time horizons in business case assessments, allowing more initiatives to qualify for investment.

This article original appeared in Material Handling & Logistics. Material Handling & Logistics is, like IndustryWeek, a part of Penton's Manufacturing & Supply Chain group.
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