It’s changing into more and more obvious {that a} warming planet and excessive climate occasions are having a direct impression on practically each financial sector worldwide—but company leaders consider sustainability and local weather change are low on the record of the largest crises they at present face, in keeping with a brand new analysis report performed by South Korea-based world enterprise community SK Group. What they actually care about is conserving the lights on amidst rising inflation, provide chain disruptions and the continued impacts of the COVID pandemic.
This report got down to establish the present viewpoints of sustainability as a disaster, perceive how organizations have responded to emergencies previously, and the way they’ll finest leverage their experiences with previous crises to design and implement ESG applications and initiatives transferring ahead.
Local weather performs second fiddle
“Backside-line enterprise points nonetheless take priority over broader world points, reminiscent of ESG initiatives and sustainability,” mentioned Hyunghee Lee, president, Social Worth Committee, SK SUPEX Council, in a information launch. “That is regarding provided that local weather change poses a menace to each particular person, group and firm. The silver lining is that companies have turn into adept at adjusting to crises. If we are able to get extra company leaders to grasp the implications of local weather inaction, we have now an opportunity to rework industries and considerably cut back greenhouse gasoline emissions.”
Bouncing again from disaster
Crises impression organizations in another way. About one in 10 survey respondents mentioned a disaster over the previous 5 years threatened the existence of their group. Moreover, 41 % mentioned the occasion considerably impacted the corporate’s capacity to function or develop.
Different crises had been much less extreme, with 46% of respondents saying the issue solely considerably restricted the corporate’s capacity to function or develop. The fact is that any disaster can have a major impression, dramatically altering the best way most organizations and groups work. A few of the largest modifications occurred by way of budgets and each human and technological sources.
However crises may also go away a long-lasting constructive impression. When companies survive a serious disaster, they’ll emerge stronger and extra environment friendly than ever earlier than. In truth, 84 % of respondents agree {that a} disaster has helped rally their individuals collectively in direction of a shared aim. Moreover, 70 % mentioned their group’s technique implementation capabilities grew stronger because of the disaster and 61 % mentioned their firm is now higher off than it might have been if it had by no means confronted the disaster.
Boundaries to motion
ESG and enterprise sustainability have had an issue with turning guarantees into actions as a result of sustainability isn’t seen as a disaster. So what will be carried out to make corporations higher perceive the connection between local weather change and financial stability?
In some unspecified time in the future, each traders and corporations will come to the conclusion that being sustainable isn’t just good for the planet—it’s also good for the underside line. However, once more, why have so many corporations didn’t take decisive motion? Resistance to alter is the most typical problem skilled by organizations seeking to implement sustainability initiatives, cited by 37% of respondents. Moreover, lack of workers sources together with worker mindset/conduct are prime considerations, cited by 31 % of respondents, respectively.
One other placing discovering from the research is that respondents really feel that their group is both usually or typically adaptable to adopting sustainability methods within the face of enterprise challenges, but solely 8 % really feel this manner persistently.
The excellent news is {that a} majority of respondents consider that organizations bear essentially the most duty for financing sustainability applications or initiatives. One other 26 % mentioned this duty falls on the federal government, whereas 12 % mentioned shareholders; solely 6 % consider this duty falls on the client. What’s extra, 75 % say their group’s sustainability technique is vital to the general success of their enterprise. About half of organizations have an present clearly outlined sustainability technique and one-third don’t.
SK Group has dedicated to reducing 200 million tons of carbon emissions throughout its corporations by 2030. SK, which has companies within the semiconductor, vitality and life sciences sectors, amongst others, is investing $52 billion within the U.S. by 2030 with the vast majority of new investments centered on clear vitality and applied sciences.
Obtain the whole report right here.
The survey was fielded on-line and reached a complete of 504 U.S. professionals with a job function of Supervisor or increased.
