Pure Strategies’ latest research reveals growth in corporate spending in sustainability; more than 80 percent of surveyed companies expect a budget increase from 2016 to 2017 with a third anticipating double-digit growth.
The 153 survey respondents reported total savings of from $5-8 billion with approximately $800 million from increased sales and $800 million in manufacturing cost savings. Additional earnings in risk reduction, productivity gains, and enhanced growth opportunities added up to billions in value. Companies reporting earning the most from sustainability plan to further increase their budgets, pointing to a key link between sustainability program investment and business benefits.
“The business case for sustainability has never been stronger,” noted Tim Greiner, Pure Strategies Managing Director. “Investment is higher than ever, especially from the top performers. But resources must shift to promoting more productive and regenerative systems, clean energy, safer materials, and fair opportunities. These shifts are where change is most needed and where companies can find the greatest business value.”
There are encouraging signs of progress. The number of companies using renewable energy is anticipated to nearly double, from 26 percent in 2016 to 46 percent of companies planning to have well-advanced efforts in 2019. Top performing firms in the survey expect to rely on renewable power purchase agreements during that time period.
Retailer requirements are driving progress
The survey respondents are embracing safer materials, with this area expected to grow from 64 percent of companies with well-advanced programs in 2016 to 79 percent in 2019. When asked about safer materials efforts, meeting retailer requirements ranked highest; with 70 percent of respondents reporting strong efforts in this area.
The number one retailer driving investment in sustainability is Walmart. Survey respondents have consistently identified the world’s largest company as the leading retailer influencing company investment in sustainability. In two previous Pure Strategies’ studies, Walmart was named the top retailer stimulating investment in product sustainability. In the new survey, the company was named the top retailer driving investment in sustainability, receiving twice as many votes as Target, the second most cited retailer.
“This report shows that companies know sustainability is good business,” said Kathleen McLaughlin, Senior Vice President and Chief Sustainability Officer for Wal-Mart Stores, Inc. “Strengthening product supply chains and other systems today will benefit customers, business, and society tomorrow. We’re proud to be addressing major issues like climate change and livelihoods, while at the same time improving efficiency and strengthening our company.
Explore the research report and related infographic for more details.
