IBM’s recent study reveals a stark contrast between the perceived importance of sustainability and the actual progress made by companies.
The Sustainability Paradox
The latest research from IBM, titled ‘Beyond checking the box’, has brought to light a significant sustainability paradox within the corporate world. While a resounding 76% of executives acknowledge the critical role of sustainability in their business strategies, a mere 30% report substantial strides in implementing their sustainability plans.
Data Dilemma
A key obstacle identified in the study is the challenge of sourcing supply chain data from core systems. Only 40% of the surveyed executives can automatically extract sustainability data from essential systems like enterprise resource planning solutions. This data and transparency are deemed crucial by 82% of respondents to achieve sustainability goals, yet the capability to do so is lacking.
Strategic Sustainability
The IBM study, which gathered insights from 5,000 C-suite executives across various industries and countries, emphasizes the need for a strategic, rather than a superficial, approach to sustainability. It suggests that sustainability should be woven into the fabric of business operations, rather than being treated as a mere compliance or reporting activity.
Key Findings for Supply Chain Directors:
- Funding sustainability investments remains a challenge for 47% of executives.
- Financial and sustainability outcomes often require difficult trade-offs, as reported by 60% of respondents.
- Current spending trends show a 43% higher allocation for sustainability reporting over innovation.
- Companies integrating sustainability into their core are 75% more likely to see revenue improvement from their efforts and are 52% more likely to surpass their peers in profitability.
- Generative AI is recognized by 64% of executives as a significant tool for sustainability endeavors.
Oday Abbosh, IBM Global Managing Partner, Sustainability Services, stresses that a mere compliance mindset towards sustainability can hinder an organization’s growth. He advocates for sustainability to be an integral part of daily operations, driving innovation, talent acquisition, and retention, and ultimately leading to both positive environmental and financial outcomes.
