The Business of Sustainability

Supply Chain Brain (9/23) – An overwhelming majority of corporate executives believe that sustainability-related issues are having or will soon have a material impact on their business. Yet relatively few companies are taking decisive action to address such issues, according to a new study by MIT Sloan Management Review (MIT SMR) and The Boston Consulting Group (BCG). Although almost all the executives in the survey (92 percent) said that they were trying to address the issue of sustainability, most said that their companies were either not taking bold action on sustainability or falling short on execution…The research indicated that once companies begin to pursue sustainability initiatives in earnest, they tend to unearth opportunities to reduce costs, create new revenue streams, and develop more innovative business models. "One of the most interesting findings was that the more you know about sustainability, the more it matters," said Michael Hopkins, editor in chief of MIT SMR and a co-author of the report. "Executives who have been thinking and strategizing around the issues are much, much more likely to see the competitive advantage that a sustainability strategy can grant."