Almost 90% of businesses reported that sustainability informs their business decisions, according to a new survey released by market research firm SAP Insights.
The study shows that despite persistent global supply chain disruptions, labor shortages, and inflation, the percentage of businesses investing in the environment for the first time has increased fivefold since 2021.
The report found that more than 60% of business leaders recognized that sustainability has a moderate or strong effect on their long-term competitiveness and profitability. In addition, customer demand as a sustainability motivator has increased sevenfold in 2022 over the inaugural 2021 survey.
The analysis also observes that 75% of business leaders polled said they would either increase or maintain their current levels of investment. Of those planning to increase investments, 80% were intending to boost spending by more than 10%.
Furthermore, the Oxford Economics and SAP study found key challenges emerging where companies could focus to improve their sustainability results in order to move into the environmental leader’s category. Efforts to address those concerns fall into five core areas: Begin with executive sponsorship; Drive clear, consistent communications; Integrate processes, technologies, and data; Extend sustainable practices to customers, partners, and suppliers; Understand that data is critical.