In fact, 61.3% of respondents believe that the implementation of their sustainability strategy is as high a priority as ever, because of the need to generate efficiencies in the organisation’s consumption of energy, resources and travel. Reinforcing this finding, two-thirds of all respondents cited cost savings as the main reason for their chief executive’s commitment to sustainability.
However, a similar percentage (61.8%) believe that budget allocations for sustainability projects are under pressure, suggesting that there will need to be a greater emphasis on driving general efficiencies across departments and business units rather than specific CSR or sustainability initiatives.
More worrying is the fact that only 15% of respondents mentioned new product development as one of the top three priorities in their organisation’s sustainability agenda. Similarly, only 8% mentioned new product development when asked to provide their top three tips for defending the organisation’s sustainability strategy. Many experts in climate change and sustainability believe the only way to effectively manage these issues is through the generation of new technologies, products and processes.
Sir David King, Director of the Smith School of Enterprise and the Environment at Oxford University, and ex-Chief Scientific Adviser to the UK Government, commented: "Generating efficiencies from existing operations will only get us so far along the line to meeting our climate change obligations; what we really need to close the deal is innovation. At the G8 Heads of States meeting in Japan this year it was agreed that there should be a global reduction in CO2 emissions of 50% by 2050. This signals a sea-change in our approach to a sustainable environment. It represents a massive opportunity for those in the private sector who respond to it early. History shows us the businesses that continue to invest in R&D through difficult economic conditions are the ones that generate better returns when markets improve. In effect, there is a dual motivation for business to invest in delivering sustainability, but this research seems to indicate that commitment is not there."
Martin Chilcott, Chairman and CEO of 2degrees concluded: “The current focus on efficiency at the expense of R&D, suggested by our research, presents a huge opportunity for entrepreneurs in this space. 2degrees has a track record of enabling established, blue chip companies to find more sustainable business partners and suppliers, and of facilitating debate and communication among the business community on how climate change and CSR may be tackled. We look forward to welcoming a new wave of businesses and the business leaders of tomorrow onto the network, as they meet the challenges of sustainability and climate change by creating new products, services, jobs and wealth.”
An 80% reduction can happen only if there is follow up on the path the Energy Bill has mapped.
