• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • BLOG
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Companies Begin to See Risks, Opportunities Associated with Sustainability, Report Finds

Companies Begin to See Risks, Opportunities Associated with Sustainability, Report Finds

Report_1_05.gif
May 9, 2013
Ernst & Young LLP

Driven by trends such as extreme weather events and risks to natural resources, among other factors, the shift is evidenced by the increasing involvement in sustainability-related issues of shareholders and the C-suite. At the same time, the study finds, companies are not adequately aligning risk response to the scale of sustainability challenges. Conducted in late 2012, the study is based on a comprehensive survey of sustainability leaders and explores developments in corporate sustainability programs.

The report provides statistics around six trends:

1. The "tone from the top" is key to heightened awareness and preparedness for sustainability risks.

"¢ More than half of the companies surveyed indicated alignment on both mandated and voluntary sustainability disclosures. Engagement of the CEO and Board are critical for achieving alignment with sustainability and financial efforts. 

"¢ The largest proportion of companies that reported total alignment with financial and sustainability reporting - 36 percent of companies - reported that both the CEO and board of directors are fully engaged. Of the above companies, 86 percent said sustainability was embedded in strategic planning and capital budgeting, 70 percent said their mission statement included social and environmental issues, and 68 percent said their organization regularly discussed sustainability-related risks and opportunities with investors and other stakeholders. These numbers represent a high level of engagement in our survey sample.

2. Governments and multilateral institutions aren't playing a key role in corporate sustainability agendas.

"¢ Instead, respondents said consumers have significant influence on advancing sustainability on a global basis, with 61 percent citing them as a driver.

3. Sustainability concerns now include increased risk and proximity of natural resource shortages.

"¢ 51 percent said they anticipate their company's core business objectives to be affected by natural resource shortages such as water, energy, forest products and rare earth minerals / metals, in the next three to five years.

"¢ Water (76 percent) was ranked by survey participants as the number-one cause for concern among resources "most at risk."

4. Corporate risk response is not well paired to the scale of sustainability challenges.

"¢ Even though 79 percent of respondents said sustainability risks were incorporated into their enterprise risk framework, only three in 10 companies said they had run scenario analyses, and 36 percent said they had no plans to do so.

5. Integrated reporting is slow to take hold.

"¢ However, 43 percent said integrated reporting would be "extremely" or "very" helpful in such things as breaking down the silos, involving the CFO / finance team in sustainability-related initiatives and reporting, and validating the existence and importance of non-financial information reporting.

6. Inquiries from investors and shareholders are on the rise.

"¢ Half reported that they are receiving an increase in the number of sustainability-related inquiries from investors and shareholders over the past 12 months.

"¢ The average proxy proposal received 21 percent of investors' votes in 2011, up from 10 percent in 2005, reflecting a high level of interest and support.

"Across corporate America, executives are increasingly focusing more attention on the risks and opportunities around sustainability" said Steve Starbuck, Americas Leader, Climate Change and Sustainability Services, for the global Ernst & Young organization. "However, most companies still are not actively engaging in scenario planning, which means company awareness has not translated into the necessary preparedness that would minimize risk and maximize opportunities for their organization."

In fall 2012, GreenBiz Group and Ernst & Young LLP surveyed members of the GreenBiz Intelligence Panel, a group consisting of executives and thought leaders at the forefront of corporate environmental strategy and performance. For the report, results were analyzed from 282 respondents from 17 industry sectors who are employed by companies generating revenue greater than $1bn. Approximately 85 percent of these respondents are based in the United States.

Click here to download the full report.

Source: Ernst & Young

RELATED CONTENT

RELATED VIDEOS

Business Strategy Alignment Global Supply Chain Management SC Security & Risk Mgmt Sustainability & Corporate Social Responsibility
KEYWORDS Business Strategy Alignment corporate sustainability initiatives corporate sustainability strategies Ernst & Young LLP Global Supply Chain Management green enterprises SC Security & Risk Mgmt Supply Chain Analysis & Consulting Supply Chain Management supply chain management:environmental Supply Chain Risk Management sustainability
  • Related Articles

    Increasingly, Companies See Sustainability and Risk Management as Related Issues

    Global 500 Companies Report Finding Business Opportunities Resulting From Climate Change

  • Related Events

    Managing Risk Associated with People Connected to your Third-Party Relationships

    Why IBP May Save Your Supply Chain & How to Run It By This Spring

Ernst & Young LLP

Companies Begin to See Risks, Opportunities Associated with Sustainability, Report Finds

More from this author

Get regular updates!
Subscribe to our newsletter

Enjoy curated articles directly to your inbox.

Popular Stories

  • 1209_themarketforlogistics

    How an Investment Banker Views the Market for Logistics and Supply-Chain Tech

    Technology
  • 1115_chinarareearthminerals

    Podcast | Can China’s Monopoly on Rare Earth Minerals Be Broken?

    Sourcing/Procurement/SRM
  • 1206_howglobaltradersplan

    Podcast | How Global Traders Can ‘Plan for Crazy’

    Global Trade Management
  • 1210_cultureoffeargripsups

    ‘Culture of Fear’ Grips UPS: Workers Say Injuries Are Underreported

    Logistics
  • 1125_themodernfactory

    The ‘Modern’ Factory Remains a Dream for Many Manufacturers

    Technology

Digital Edition

55746

Subscribe today and receive the latest issue

Start Your Subscription

Case Studies

  • Energy Storage Company Saves $50 Million With Demand Planning

  • Locus Robotics Helps E-Retailer Deliver During Holiday Peak

  • Manufacturer Slashes Shipping Costs With AI Packaging Solution

  • Apparel Retailer Saves $45 Million With Reverse Logistics Solution

  • QuestaWeb Configures Fragrance Company’s Complex Procedures Into Its Advanced FTZ Software

Visit Our Sponsors

  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • The Magazine
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • 100 Great Partners Form
  • Resources
    • Newsletters
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing