A recent IBM study reveals a significant gap between the intentions and actions of executives regarding sustainability in supply chains, with data accessibility posing a major challenge.
Data Disconnect
IBM’s latest research, titled ‘Beyond checking the box’, uncovers a stark disparity between the aspirations for and the actual progress on sustainability within organizations. Although a majority of executives—76%—recognize the importance of sustainability, only 30% have made substantial strides in their sustainability strategies.
Core System Challenges
The study, which gathered insights from 5,000 C-suite executives across various industries globally, points out that less than half of the organizations can seamlessly extract supply chain data from their primary systems. This data is crucial for achieving sustainability goals, yet only 40% of respondents can automatically source this information from key systems like enterprise resource planning solutions.
Strategic Sustainability
IBM’s findings suggest that merely ticking off sustainability initiatives isn’t sufficient. Instead, companies should integrate sustainability into their operational core. Those who have successfully embedded sustainability into their business operations are 75% more likely to report revenue improvements and 52% more likely to surpass their peers in profitability.
Funding and Trade-offs
The report highlights that 47% of executives face difficulties in securing funds for sustainability investments. Additionally, 60% acknowledge the need to balance financial performance with sustainable outcomes, often leading to trade-offs.
Innovation vs. Reporting
Interestingly, the expenditure on sustainability reporting is 43% higher than that on sustainability innovation. This indicates a potential misalignment in where resources are being allocated in the pursuit of sustainability.
AI and Sustainability
The role of generative AI in sustainability efforts is recognized by 64% of executives, who believe it will significantly contribute to their initiatives.
IBM’s Perspective
Oday Abbosh, IBM Global Managing Partner for Sustainability Services, emphasizes the need for a deliberate and unified approach to sustainability. He advises that sustainability should be woven into daily operations rather than being seen as a mere compliance or reporting task.
The IBM study serves as a call to action for organizations to move beyond superficial sustainability efforts and to strategically incorporate these practices into their business models to achieve both environmental and financial benefits.
