UN Global Compact, Accenture Release Findings of Largest CEO Research     Study on Corporate Sustainability

NEW YORK—In spite of the recent economic downturn, an overwhelming majority of     corporate CEOs – 93 percent – say that sustainability will be critical     to the future success of their companies. Furthermore, CEOs believe     that, within a decade, a tipping point could be reached that fully       meshes sustainability with core business – its capabilities,  processes     and systems, and throughout global supply chains and subsidiaries.

These are among the key findings of a survey of 766 CEOs around the     globe – the largest such research study of top executives ever conducted     on the topic of sustainability – released today by the United Nations     Global Compact and Accenture. In addition to an online survey, the study included     extensive interviews with 50 of the world’s leading CEOs.

According to the survey, A     New Era of Sustainability: UN Global Compact-Accenture CEO Study 2010,      the global economic downturn did little to dampen corporate commitment     to sustainability. In fact it seems to have done the opposite: 80     percent of the CEOs say the downturn has raised the importance of     sustainability. As businesses address the challenges of the financial     crisis, sustainability is being recognized as a source of cost     efficiencies and revenue growth. Additionally, many companies view       sustainability as a critical element in driving growth in new markets as     they look toward economic recovery.

The survey results indicate that businesses are taking sustainability     more seriously. In a similar survey conducted in 2007, 50 percent of the     CEO respondents said that sustainability issues had become part of their     company’s strategy and operations. In the 2010 survey, that number       jumped to 81 percent.

While recognizing the scale and complexity of global challenges,  many     CEOs say there has been progress over the past three years in making the     transition from developing a sustainability strategy to execution.  CEOs     cited several barriers to achieving their sustainability goals,      including:

  • The complexity of implementing strategy across business functions       (cited by 49 percent)
  • Competing strategic priorities (48 percent)
  • Lack of recognition from the financial markets (34 percent)

CEOs also believe that several conditions must be met before     sustainability can be fully integrated into a company’s core business,      and that businesses need to take a leadership role in bringing them     about. Business action will be required in five key areas:

  • Shaping consumer tastes in order to build a stronger market for       sustainable products.
  • Training management, employees and the next generation of leaders to       deal with sustainability issues.
  • Communicating with investors to create a better understanding of the       impact of sustainability.
  • Measuring performance on sustainability – and explaining the value of       business in society.
  • Working with governments to shape clearer regulation and create a       level playing field.

On the issue of creating a friendlier investor environment for business     sustainability, fewer than 50 percent of the executives surveyed (who     work for listed companies) indicated that sustainability informs their     discussions with financial analysts. Even though CEOs overwhelmingly     believe their sustainability activities have a positive impact on their     company’s valuation – in terms of revenue growth, lower costs,  reduced     risks and enhanced brand reputation – quantifying that value with     traditional metrics such as cost reduction and revenue growth has been     elusive.

“Achieving greater environmental and social sustainability takes time,      effort and a sincere leadership commitment,” said Georg Kell,  Executive     Director of the UN Global Compact. “Two-thirds of the CEOs we surveyed     are looking to the Global Compact as a forum for sharing best practices     and emerging ideas on sustainability, and we look forward to helping     guide their efforts to develop effective policies and tangible     practices.”

Warming investors to the notion that sustainability is good for the     bottom line and regaining trust of all stakeholders in the wake of the     global financial crisis are other critical issues CEOs face,  according     to the survey.

“CEOs told us they have by necessity been on the defensive during the     downturn, but that they feel now is the time to get on the front foot in     aligning sustainability with core business strategy and execution”  said Mark     Foster, Accenture’s group chief executive, Management     Consulting and Global Markets. “Business leaders recognize they are     going to have to take a real lead, for example, holding the line on     sustainability in their business models; tackling the roadblocks with     diligence in tough to crack areas like supply chain and performance     management; and working hard to respond to and shape customer demands     that turn sustainability into an opportunity for growth and innovation.”

According to the survey findings, three corporate attributes –  brand,      trust and reputation – were by far the primary considerations CEOs cited     for acting on sustainability. They were identified by 72 percent of the     respondents as one of their biggest motivators, followed in descending     order by: the potential for revenue growth and cost reduction (cited by     44 percent), personal motivation (42 percent), consumer and customer     demand (39 percent) and employee engagement and retention (31 percent).

Additionally:

  • 83 percent said the economic crisis elevated the role of       sustainability and ethics in building trust in business
  • 80 percent said it raised the importance of sustainability as a       leadership issue for top management
  • 77 percent said it led them to take a longer-term view of business and       the role of sustainability

Among the survey’s additional findings:

  • Education and climate change were identified by respondents as the       “big issues” they face, with resource scarcity and health starting to       appear on the horizon. Education was identified by 72 percent of the       respondents as the most important development issue for the future       success of their business, followed by climate change at 66 percent.
  • 91 percent of CEOs said their companies would employ new technologies       to address sustainability issues over the next five years, such as       developing renewable energy and creating greater energy efficiency.
  • 78 percent of the respondents believe that companies should engage in       collaboration with a variety of stakeholders to address sustainability       issues. Examples of potential partnerships include suppliers,  NGOs and       governments.

“It is clear from the survey results that global business has its work     cut out in order to build sustainability programs that become key     components of a company’s core business,” said Peter Lacy, who led the     study and is managing director, Sustainability     Services at Accenture for Europe, Africa and Latin America.  “If     sustainability does become fully integrated into global businesses       within the next decade, the regulatory, technology, investment and       consumer changes required will be staggering, creating significant       winners and losers across businesses and industries.

“However, it’s great to see that some progress is being made, and that     the movement toward a more sustainable economy and business context is     clearly gaining momentum.”

About the United Nations Global Compact

Launched in 2000, the United Nations Global Compact is a call to     companies around the world to align their strategies and operations with     ten universal principles in the areas of human rights, labour,      environment and anti-corruption, and to take action in support of     broader UN goals. Through the development, implementation, and     disclosure of responsible corporate policies and practices,  business can     help ensure that markets advance in ways that benefit economies and     societies everywhere. The Global Compact is not a regulatory body,  but a     voluntary leadership platform for dialogue and learning. With more than     8,200 signatories in more than 135 countries, it is the world’s largest     corporate responsibility initiative. More information: www.unglobalcompact.org.

2010 UN Global Compact Leaders Summit: Building a New Era of     Sustainability

24-25 June 2010, New York

Chaired by UN Secretary-General Ban Ki-moon, the UN Global Compact       Leaders Summit 2010 will bring together more than 1,200 leaders from all     sectors to elevate the role of responsible business and investment in     bringing about the needed transformation to more sustainable and     inclusive markets. More information: www.leaderssummit2010.org.

Accenture
Chris Allieri, 917-452-5161
646-245-8937 (mobile)
[email protected]
or
UN       Global Compact
Matthias Stausberg, 917-367-3423
917-214-1337       (mobile)
[email protected]

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