Business Case for Sustainability - Results of McKinsey 2011 Study

For an interesting analysis of the Business Case for adopting Sustainability practices in the for profit corporation, the results of the recent McKinsey Survey (July 22, 2011) prove interesting. Views of 3,202 executives from a range of regions, industries, company sizes and functional specialties were canvassed and indicated a higher awareness and adoption of such practices since their 2010 survey.

In summary, companies are more actively integrating sustainability principles into their businesses and seeing business gains beyond the merely reputational. Savings in energy useage, employee motivation and improving operational efficiencies were some of the responses given for integrating more sustainable practices into their businesses.

Reasons given by companies for adopting sustainability objectives were given as follows:

• 33% - for purposes of operational efficiency and lowering costs 
• 32% - for reputation
• 27% - for new growth opportunities

McKinsey's provides interesting analysis on where sustainability provides competitive advantage and in which industries. Their conclusion is that "more businesses will have to take a long-term strategic view of sustainability and build it into the key value creation levers that drive returns on capital, growth and risk management..., as well as the key organizational elements that support the levers. Each company's path to capturing value from sustainability will be unique, but these underlying elements can serve as a universal point from which to get started." https://www.mckinseyquarterly.com/Energy_Resources_Materials/Environment/The_business_of_sustainability_McKinsey_Global_Survey_results_2867?pagenum=5

For the analysis of the full survey: see https://www.mckinseyquarterly.com/Energy_Resources_Materials/Environment/The_business_of_sustainability_McKinsey_Global_Survey_results_2867