Sustainability’s brighter future
Kiwi businesses are playing it safe when it comes to sustainability, says a survey by the University of Auckland’s Business School.
Firms like to target projects which can deliver clear payback by saving costs in areas such as improved energy and reduced waste, said the Sustainable Business 2016 report.
But there is hope on the horizon. The research found that businesses were preparing to be more ambitious in the future, by trying to cut carbon emissions and reducing their environmental impact.
Business School Dean Professor Greg Whittred said: ‘‘Businesses are realising they can innovate, differentiate and build relationships with their customers through being sustainable. Sustainability is becoming a competitive frontier, and it also helps them compete for quality staff.
‘‘The emphasis can be expected to shift over the next three years to product or services design and development, employee engagement and diversity, reporting which will probably be non-financial, and environmental or carbon footprint production.’’
The research also showed that few businesses had reported significant investor, stakeholder or staff pressure to lift their act.
It found sustainable business was being driven by executives and the boardroom rather than the street and the stock market, but that firms were beginning to spy future market opportunities in the area, and were seizing on sustainability as a driver of innovation in both products and processes.
Whittred added: ‘‘Over half of respondents aim to become sustainability leaders in their sectors in the next three to five years and one fifth aim to disrupt their markets.
‘‘These are ambitious goals – far from lip service. Bear in mind, though, that the respondents are from businesses that have already made at least some moves towards sustainability.’’
Separately, chair of power distributor Vector, Michael Stiassny, said sustainability would soon become essential for the health of business and the nation.
In a speech on Auckland’s sustainability to the University’s Business School he said: ‘‘I think sustainability will become synonymous with survival, and I don’t mean about climate change , but about the fabric of society.’’
The University’s research among 33 companies was undertaken between July and September.