Simply 1 in 5 companies clear on how one can obtain their sustainability commitments, survey finds
While half of companies are run by executives who support long-term environmental sustainability ambitions, only a fifth have a clear roadmap for implementation, a new survey found.
The survey shows that many companies still approach the topic of sustainability with a focus on compliance
The Sustainability Maturity survey was carried out by the consulting firm Sphera and interviewed 218 business leaders around the world. The cohort of respondents, according to Sphera, represents a number of different industries and company sizes. The results were published today (September 30th) in a new report.
Half (51%) of respondents said their company has sustainability commitments backed by the board of directors, but less than a third (29%) said their company has set and communicated time-bound numerical goals.
This lack of disclosure may be due to the fact that only 21% of respondents said their company has a clear roadmap for achieving its goals. This proportion rose slightly to 26% among those surveyed who claim that sustainability is not sitting in a silo, but is embedded in the core business strategy of their company.
In other words, while ambitions are increasingly being set at the highest level, many companies are not yet sure how to achieve them. This applies in particular to Scope 3 (indirect) greenhouse gas emissions; Only 13% of the companies surveyed have determined which categories of Scope 3 emissions are most relevant to them and have completed measurements of emissions from these sources.
Organizations of all sizes and sectors, Sphera said, cannot rely on one panacea to turn commitments into action – a variety of solutions and enablers are needed.
On the political side in particular, the report emphasizes the need for governments to impose stricter and more uniform disclosure requirements for companies.
“Companies have largely been left to their own devices to determine and measure their sustainability performance, which has led to a constellation of voluntary frameworks that ultimately do not provide incentives for meaningful action,” said Paul Marushka, CEO of Sphera.
“But with the latest report from the Intergovernmental Panel on Climate Change issuing its strongest warning yet – suggesting that half-measures will no longer be enough – and the upcoming COP26 conference promises to hold business to account, organizations must start making their promises and shows tangible progress. “
On the business side, the report emphasizes the importance of good data in preventing greenwashing and laying the groundwork for developing – and delivering – ambitious goals. It can also help companies anticipate upcoming changes in disclosure rules.
The survey found that only 16% of respondents’ companies use emissions data from established commercial databases and another 14% use high quality, industry-related data. This means that 70% of respondents work in what Sphera describes as “suboptimal records,” which can lead to inaccurate ratings.
Improving data quality was one of the main focal points during edie’s last masterclass webinar on dealing with Scope 3 emissions, which was organized in collaboration with Inspired Energy. You can read the key takeaways from this session by clicking here and watch the entire 60 minute event on-demand by clicking here.
Sarah George
