Corporate Sustainability Trends for 2013

October 8, 2013 2:26 PM

May 2013 saw the release of a collaborative study between Ernst & Young and GreenBiz Group on the impact of sustainability issues on corporate environmental strategy. Entitled 2013 Six Growing Trends in Corporate Sustainability, the study analyzed the results of a survey in which 272 corporate executives representing 24 industry sectors participated. The outcome was largely positive, showing a steadily rising interest in sustainability issues and initiatives among companies across the U.S.

Although the scope of the study was limited to U.S. companies with annual revenues of $1 billion and greater, the following corporate sustainability trends have already begun to reshape the business landscape and will in time likely be ubiquitous across all industry sectors:

1. Growing C-suite and employee involvement.
The first—and possibly the most promising—trend in corporate sustainability is the growing involvement of the C-suite in issues of sustainability. Conversations on how sustainability-related risks and opportunities can drive corporate environmental strategy are happening more frequently among CEOs, COOs, CFOs, employees, company investors, and stakeholders.
The CFO, in particular, has become a key player in the discussion. The why of the matter is easy enough to understand: sustainability has a direct impact on both risk management and cost reduction, both of which fall under the CFO’s umbrella of responsibility.

2. Greater focus on natural resources stewardship, efficiency, and risk reduction.
Water usage and greenhouse gas emissions have long been corporate sustainability buzzwords, and for good reason. As much as 51 percent of survey participants expect water shortages to have a tangible impact on core business objectives and operations in the next 5 years. For many companies, manufacturers in particular, transparent reporting on the availability of natural resources has become standard.
The issue of greenhouse gases, on the other hand, is a question of both efficiency and risk reduction. Whether or not regulations addressing climate change get implemented in the near future, customer expectations and efficiency goals will continue to drive companies to take proactive steps toward reducing their emissions.

3. Recognition of the value of integrated corporate reporting.
Although it has yet to see widespread implementation, more industries are promoting the practice of integrated reporting, in which companies present financial and sustainability data alongside each other. Investors and customers have a particular interest in seeing integrated reports for reasons of corporate accountability; however, accurate tools for creating integrated corporate reports have yet to be developed.

4. Increased scrutiny from customers, investors, shareholders, and the media.
An increase in the number of sustainability-focused surveys and inquiries was reported over the past year, with respondents of the study receiving requests for information from investors, media organizations, customers, and NGOs. This last trend comes as no surprise in light of the widespread demand for better transparency in reporting. It is possible that as companies take steps toward integrated corporate reporting, the number of external requests for information will decline.

The cynic may argue that where all these business trends are concerned, the proverbial bottom line isn’t far removed from the financial bottom line. Whether or not this is true, the growing emphasis on corporate sustainability calls for positive action from all industry sectors.

Online sustainability certificate programs are available for industry professionals hoping to meet the mounting need for sustainability in business. Interested parties can earn an online Non-credit Certificate in Sustainability Management through the seminars offered at academic institutions such as the University of Colorado Boulder.

To learn more about CU Boulder Sustainable Practice Program, click here.

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