Obligation or opportunity: What’s driving corporate sustainability?
While Covid-19 may have hampered some organisations’ sustainability efforts, there remains significant pressure on businesses across all sectors to reduce their carbon footprint and contribute to the UK’s zero carbon targets. But what is driving corporate sustainability?
Impact on business reputation
We spoke to over 80 financial directors from businesses across a range of industries, from manufacturing to financial services, and asked them about the drivers to implementing a carbon reduction plan. The biggest driver reported was the impact on the business’ reputation, at 51%.
This is unsurprising as stakeholders are becoming more interested in an organisation’s green credentials, and when an organisation does not live up to expectations, customers and investors will act.
Similarly, our research found that consumer expectations were a significant driver for implementing a carbon reduction plan – at 41%. Customers are increasingly expecting the businesses they work with to address their impact on the environment and businesses are responding to this.
Sustainability in the C-Suite
Another key driver relates to mandatory emissions reporting measures, with 26% of our respondents highlighting this as a motivator for carbon reduction. Introduced in 2019, Streamlined Energy & Carbon Reporting scheme (SECR) is one of the most recent reporting schemes introduced, requiring organisations to publish details of their carbon footprint in their Annual Directors’ Report.
Although some businesses will simply view it as a box-ticking exercise, SECR can play an important role in bringing sustainability into the boardroom and be used to get board level buy-in on sustainability initiatives.When asked about their experience of SECR, 11% of respondents said that SECR had encouraged their business to invest more in energy efficiency and sustainability measures. Download our findings in full here:www.inspiredenergy.co.uk/report/
Corporate sustainability in the spotlight
The focus on corporate sustainability shows no signs of slowing down. And while business leaders may understand the challenges, not everyone knows how best to tackle them.
As the UK’s leading utilities consultancy, Inspired Energy has the experience needed to support your carbon reduction ambitions and net zero journey. Contact us today on 01772 680250 or email email@example.com.