Businesses continue to overlook investment in environmental sustainability despite pressure from investors and consumers, new research reveals.
More than two thirds (67%) of business leaders believe that corporations have a responsibility to respond proactively to global challenges such as climate change, according to findings released by Ricoh Europe.
Despite this, only 24% of organisations have increased investments in sustainability during the pandemic.
The research conducted by Opinion Matters polled 1,500 decision makers across Europe. It suggests that businesses are feeling pressure from investors, customers and governments to improve their ESG performance, even if they aren’t yet taking meaningful action.
David Mills, CEO of Ricoh Europe, said: “While businesses know they need to do more to improve ESG performance and reporting, securing resources to achieve this is harder than ever. And with many new legislative requirements still in draft form, it can be difficult to know which investments to make.”
Prioritisation is crucial factor behind the lack of investment in environmental sustainability, with more than half of the organisations polled (56%) perceiving other business needs to be of greater urgency.
Digital transformation is one such priority, with 67% of businesses increasing or maintaining their level of investment. The pandemic has seen a dramatic shift in terms of how businesses operate, with many introducing digital ways of working, including cloud technology, hybrid working, and big data solutions.
These changes contribute towards improved energy efficiency, as well as improved data capture and reporting. Nevertheless, a majority of business leaders (71%) don’t believe that this digital transformation can help realise their company’s long term sustainability goals.
The findings come amid the rollout of a new range of regulations and initiatives across the European Union, including the European Green Deal and the Corporate Sustainability Reporting Directive, which require organisations with over 500 employees to disclose their non-financial information.
Mr. Mills continued: “It’s important to remember that business success and ESG success don’t have to be mutually exclusive.
“Digital transformation is one area leaders should feel confident investing in because there’s a lot of overlap with business and ESG outcomes. Not only does it help to improve operational efficiencies and environmental outcomes, it future-proofs the business.”
