INSIGHT #7
Sustainability and profitability — two sides of the same coin?
KEY FINDING
74% of respondents believe sustainability will have a positive impact on their company’s revenue growth.
Sustainability recognized as key business strategy and revenue driver
Survey responses highlighted how companies are increasingly viewing sustainability as a valuable component of their business strategies.
Respondents overwhelming identified sustainability as a revenue driver and brand enhancer, citing specific opportunities that have garnered interest from senior leaders.
"The market is moving towards green and more sustainable practices. Being aligned with this trend is always beneficial for [our] company."
Director, ESG at company with more than $1B in annual revenues
"Prioritizing sustainability aligns with our brand and modern consumer values."
Director, EHS at company with more than $1B in annual revenues
From a practical perspective, respondents highlighted the mitigation of risk, the creation of positive brand narratives, and the ability to attract younger generations of employees and investors. Bigger ideas included developing offerings that contribute to climate change goals and differentiating products for environmentally aware consumers. Even larger concepts centered on circularity, regeneration, and sufficiency, which lead to more stable markets and equitable societies.
These broader, transformational ideas create significant opportunities for innovation and enterprise growth.
Impact on brand value
Survey respondents that expect positive impact on brand value from sustainability initiatives
"Sustainable changes build trust and credibility with stakeholders, reinforcing our reputation as a trustworthy and socially responsible organization."
"Demonstrating a genuine commitment to sustainability can attract socially conscious investors and stakeholders, bolstering our brand's financial performance and long-term viability."
"Sustainable initiatives provide opportunities for storytelling and brand narratives, allowing us to connect with consumers on a deeper level and strengthen brand loyalty."
"Building a reputation for sustainability enhances our brand's resilience to reputational risks and crises, protecting our brand equity and long-term value."
"We see sustainability as the new norm in the near future. The rationale behind it is noble and will undoubtedly enhance our brand's image."
Impact on revenue
Survey respondents that expect positive impact on revenue growth from sustainability initiatives; while 21% believe growth will slow — at least initially.
"Adapting early for the future will give us an upper hand in the market and help us gain new market share."
"Stronger reputation means more people trust our brand. That translates to higher customer loyalty and repeat business, boosting revenue."
"I believe that sustainability will become a mandate for every company in the coming years. Starting early would surely benefit us and could also contribute to revenue growth."
"Initial growth would be slow because integrating sustainable practices into the conventional workflow is not standard practice, implementing changes, providing training, and integrating them into the mainstream will require time and incur additional expenses."
"The complexity of measuring and reporting sustainability metrics can divert focus from growth-oriented projects."
