Most businesses plan to boost their commitment to sustainability this year, despite the tough economy, a new global study has revealed.

 

A report study by MIT Sloan Management Review (MIT SMR) and The Boston Consulting Group (BCG) has found that69% of firms expect to step up their investment in and management of sustainability this year. 

 

Only 26% plan no change, and just 2% say they will cut back on their commitment.

 

The study, carried out for the second year, is based on a survey of 3,100 corporate leaders across all industries, and 30 in-depth interviews with experts.

 

It found that a two-speed landscape is emerging, with a gap between sustainability “embracers”—those who place sustainability high on their agenda—and non-embracers or “cautious adopters,” who have yet to focus on more than energy cost savings, material efficiency, and risk mitigation.

 

Embracers are significantly more confident about their competitive position than non-embracers, with 70% saying they believe their organizations outperform industry peers.

 

By contrast, only 53% of the cautious adopters described themselves as outperformers, and 14% admitted to lagging behind peers.

 

In addition, nearly three times as many embracers (66%) than cautious adopters (23%) said that their organization’s sustainability actions and decisions have increased their profits.

 

“What’s fascinating is that our findings depict a business landscape in general that’s tilting hard toward where the embracers already are,” said Michael Hopkins, editor-in-chief of MIT SMR and a co-author of the report. “So the embracers have handed us a kind of crystal ball. Their insights and behaviors suggest a blueprint for how management practice and competitive strategy will evolve.”

 

The report said improved brand reputation was perceived as the biggest benefit of investment in sustainability, while the auto sector was send as the industry for which sustainability was most critical – 80% of car executives in the sector said sustainability-related strategies were essential.

 

“Most companies—whether currently embracers or not—are looking toward a world where sustainability is becoming a mainstream, if not required, part of the business strategy,” said Knut Haanaes, a BCG partner and managing director and co-author of the report.

 

“Those not already putting sustainability at the heart of their business will need to do so in the near term.”