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DoesYourBusinessHaveaTalentforSustainability?
Howdoesabusinessgetbetteratsomething?
Ifthegoalisspecific,suchasdesigningnewproducts,
youmightcarveoutagroupofexpertswhocanfocus
withoutdistractions.
Iftheambitionisbroad,suchasmakingthebusinessenvironmentallysustainable,theoppositeistrue.Improvementcomesfromspreadingskills,resources,andresponsibilityaswidelyaspossibleacrossthecompany.
Here’swhybusinessesneedtobecometalentedinsustainability:besidestheobviousworld-savingimplications,morethan60%ofrespondentstoanSAPInsights
surveyof6,669businessleadersin40countriessaythatsustainabilityhasamoderateorstrongeffectonlong-termcompetitivenessandprofitability.
>60%
Sayingthatsustainabilityistiedtothesuccessorfailureofacompanyisaprettygoodargumentforgettingbetteratit.Forthattohappen,topmanagementneedstomakesustainabilitypartofhowthebusinessdefinessuccesssothatemployeesunderstandwhytheyneedtoincorporateitintohowtheythinkandwhattheydo.
Sustainabilityhastobecomesecondnature–atalenteveryonepracticeswithoutneedingreminders.Forexample,servingcustomersandspendingthecompany’smoneywiselyareingrainedinusall;iftheyaren’t,thecompanyisinbigtrouble.
Thegoodnewsisthataccordingtothesurvey,companiesaremakingprogressonbecomingtalentedinsustainability.
Here’swhy:despiteeconomicuncertainty,businessesareinvestingmore–andmoreconsistently–insustainabilitycomparedtoayearago.
90%
Almost90%saysustainabilityinformstheirbusinessdecisions.They’realsobuildingsustainabilityintotheirbusinessprocesses.
Companiesare
makingprogress.
However,aswithanybroad-basedbusiness,talent,money,will,
andstrategicimportancearenotenoughtoguaranteesuccess.
Beinggoodatsustainabilityrequiresanenvironmentalimpact
strategy,whichmanyrespondentssaytheylack.
Italsoneedsavarietyofleaderstobeaccountableforsuccess,
whichrespondentsreportisstillnascentintheircompanies.
Andsustainabilitydependsonhigh-quality,accuratedatathat
theydon’tyethave.
Sobecominggoodatsustainabilityisn’tgoingtobeeasy.
Nosurprisethere.Butthesurveyfindingsshowhowcompanies
areimproving.
15%
FromLastYear
87%ThisYear
Sustainabilityhasbecomepartofthebusinessdecisions
thatarenotaboutsustainability.
Respondentsaresignalingastrongbeliefthatsustainability
affectstheirstrategiesanddecisionsacrossthebusiness.
87%ofrespondentssaythat
sustainabilitymeasurement
andreportingonenvironmental
issuesinformstheircompanies’
strategicandoperational
decisionstoastrongor
moderatedegree–a15%
increasefromlastyear.
Companiesarefeelingmoreheatfromcustomers.
Customerdemandasamotivationforbusinesssustainabilityeffortsincreasedsevenfoldyearoveryear.Itnowranksequallywithothertopmotivators,includingrevenueandprofitgrowth,chancestodevelopneworimprovedofferings,andstrongersocietalapprovalforthebusiness.
Sustainabilityismoreimportanttofinancialresults.
There’snobetterwaytomakeapracticesecondnaturethantoconnectitwithmakingmoremoney.Infact,morerespondentsthisyearseetheenvironmenthavingaroleintheirfinancialresults.
67%
OverLastYear
59%believeenvironmentalissuesare,orwillsoonbe,materialtobusinessresults–a67%increaseoverlastyear.
59%
ThisYear
Wecan’tsayforsure,butwethinkthatassustainabilitybecomespartofimportantprocessessuchasdevelopingnewproductsandservices,thefinancialresultwillbecomemoreapparent.
Investmentinsustainability
hashitoverdrive.
Sustainabilitymightaswellbethehotteststockonthemarketwithsomanycompaniespilingonsoquickly.Despitepersistentsupplychaindisruptions,laborshortages,andinflation,thepercentageofbusinessesinvestingintheenvironmentforthefirsttimehasquintupledsince2021.Moreimportantly,mostbusinessesthathavealreadyinvestedaren’tlettingup.
75%
40%
80%
years.
saytheywilleitherincreaseormaintaintheircurrentlevelsofinvestmentoverthenextthree
areplanningtoincrease
investments.
ofthoseplanningtoincreaseinvestmentswillboostspendingbymorethan10%.
Morepeoplehaveaccountabilityforsustainability
Anotherclearsignthatsustainabilityisbecominga
talentacrossthebusinessiswhenyoumakemore
leadersaccountableformakingsomethinghappen.
Thesurveyfoundthatthenumberofbusinesses
assigningaccountabilityforsustainabilitytomore
thanoneleaderincreased26%fromlastyear.
Meanwhile,19%fewerbusinessesthanlastyear
leftsustainabilityinthehandsofoneleader.
+26%FromLastYear
Sustainabilityeffortsshowsignsofgrowingpains.
Whathappenswhenyoutrytodoanythingofconsequence
thatrequiresparticipationfromacrossthecompany?
Youstartneedingmoreofeverything:moremoney,more
expertise,agreaterneedtoproveROI.
Noneofthesearegoodproblemstohave,buttheydo
signalthatbusinessesarethinkingaboutsustainabilityasa
company-wideproject.
Thegoodnews?
Somebarriersappeartobefalling.Respondentsthis
yearwerelesslikelytoflagmeasuringresultsonthe
environment,embeddingsustainabilityintoprocesses,and
aligningactionswiththeoverallbusinessstrategyasissues.
Thesechangessuggestthatcompaniesareprogressing
beyondtheearlieststages.
Respondentsyearnforacompany-wideenvironmental
impactstrategy.
Theabsenceofacompany-widestrategyforunderstanding
andmanagingenvironmentaleffectsbothinsideandoutside
thebusinessisnowoneofthetopbarrierspreventingaction.
Wesuspectthatattheheartofthisproblemisalackof
qualitydataanddifficultyinmeasuringallthedifferentways
thatsustainabilityaffectsthebusiness.
Anotherissue,webelieve,isthatcompaniesarestruggling
withhowtoincorporatesustainabilityintothelarger
businessstrategy.
Tobecomegoodatsustainability,companiesneeda
businessstrategywithsustainabilityatitscore.
Sustainabilitydataisgettingbetter,butit’snot
goodenough.
Improvingsustainabilityrequiresmeasurement,
whichofcoursemeansdata.Respondentsin
2022aremorelikelytobesatisfiedwiththeir
environmentalsustainabilitydatathantheywere
lastyear.Butthere’sstillalongwaytogo.
Only23%ofbusinessesarecompletelysatisfied.
Therestpointtogapsinthesources,quality,and
scopeoftheirdataastheirtopdissatisfactions.
17%
FromLastYear
Sustainabilityfeaturesinlong-termsuccess.
Foranybusinesstohaveafuture,itneedstoadapttochangingconditionsovertime.Asrespondents
tiesustainabilitymoretightlytooperationsacrossthecompany,it’snaturalthattheywouldalsoseeitbecomingmoreimportanttoprofitsandtoactivitiesthatfallundertheumbrellaofcompetitiveness,suchasdeliveringvalueandmaintainingcompetitivedifferentiation.Thesurveyfindingsillustratethepoint:
75%ofrespondentsseeastrongormoderatepositiverelationshipbetweensustainabilityandlong-termprofitability–up17%fromlastyear.
75%ThisYear
71%ThisYear
71%seeastrongormoderatepositiverelationshipbetweensustainabilityandlong-termcompetitiveness–up28%fromlastyear.
28%
FromLastYear
Talenttakestime.
Companiesareontheirwaytobecomingsustainabilitytalents.
Ifsustainabilitywereatalentshow,we’dallstillbeintheregionals.
Butrespondentsareambitious,andtheyconnecttakingactionon
sustainabilitywithapositivefuture.
Forcompaniestoachievetheirgoals,sustainabilityhastobecome
agroupactivity–everyonemustbegoodatit.
AccordingtotheSAPInsightssurvey,thinkingandacting
sustainablyarebecomingsecondnature.That’swhatitwilltakefor
them,andallofus,tosucceed.
EmilyActonisanAnalystandEditoratSAPInsightsresearchcenter.
EricAndersonisaResearchDataScientistatSAPInsightsresearchcenter.
SarahDziukisHeadofResearchatSAPInsightsresearchcenter.
ConnorGasparisaResearchDataScientistatSAPInsightsresearchcenter.
JennyHillisSeniorMarketingSpecialistatSAPInsightsresearchcenter.
DavidJonkerisVicePresidentandChiefAnalystatSAPInsightsresearchcenter.
ChristopherKochisSeniorEditorialDirectoratSAPInsightsresearchcenter.
ChristineMüllerisDirectorofGlobalSustainabilityTransformationandChangeManagementatSAP.
VikramNagendraisDirectorofCorporateSustainabilityatSAP.
MichaelRanderisSeniorDirectorandHeadofOperationsatSAPInsightsresearchcenter.
DanWellersisDigitalFuturesLeaderatSAPInsightsresearchcenter.
AboutThisResearch
TheSAPInsightsresearchcentercollecteddatafrom6,669respondentsacross40nationsand29industries.Respondentshadhighestknowledgeoftheirorganization’ssustainabilityobjectives
andprocesses.ThesurveyswereconductedinApril2022viaa10-minuteonlinesurvey.
©2022SAPSEoranSAPaffiliatecompany.Allrightsreserved.
NopartofthispublicationmaybereproducedortransmittedinanyformorforanypurposewithouttheexpresspermissionofSAPSEoranSAPaffiliatecompany.
Theinformationcontainedhereinmaybechangedwithoutpriornotice.SomesoftwareproductsmarketedbySAPSEanditsdistributorscontainproprietarysoftwarecomponentsofother
softwarevendors.Nationalproductspecificationsmayvary.
ThesematerialsareprovidedbySAPSEoranSAPaffiliatecompanyforinformationalpurposesonly,withoutrepresentationorwarrantyofanykind,andSAPoritsaffiliatedcompaniesshallnot
beliableforerrorsoromissionswithrespecttothematerials.TheonlywarrantiesforSAPorSAPaffiliatecompanyproductsandservicesarethosethataresetforthintheexpresswarranty
statementsaccompanyingsuchproductsandservices,ifany.Nothinghereinshouldbeconstruedasconstitutinganadditionalwarranty.
Inparticular,SAPSEoritsaffiliatedcompanieshavenoobligationtopursueanycourseofbusinessoutlinedinthisdocumentoranyrelatedpresentation,
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