This report on the second annual Sustainability & Innovation Global Executive Study by MIT Sloan Management Review and The Boston Consulting Group reveals two distinct camps of companies: “embracers” — those who place sustainability high on their agenda — and “cautious adopters,” who have yet to focus on more than energy cost savings, material efficiency, and risk mitigation.
The report identifies seven specific practices exhibited by embracer companies, which together begin to define sustainability-driven management. These include the need to move early, even if you don’t have complete information; to be authentic and transparent both internally and with the external stakeholders; and to work aggressively to “de-silo” sustainability, integrating it throughout company operations.
Findings
• Improved brand reputation is perceived as the biggest benefit of addressing sustainability.
• Automotive is seen as the industry for which sustainability is most critical now.
• The commitment of the cautious adopters to sustainability is increasing at a far faster rate than that of the embracers.
• 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.
READ THE REPORT
Preface and Summary
A sweet spot on the adoption curve?
Chapter 1: Business Is Investing More in Competing on Sustainability
The surprising downturn response; universal first moves — waste reduction and resource efficiencies; embracers and cautious adopters: two views of the business case
FOCUS: A sustainability brand can be easily dented
Chapter 2: Who Are the Embracers?
Embracers are top performers; embracers conceive of sustainability advantage broadly; managing change on the adoption curve
FOCUS: For growing companies in growth markets, sustainability investments come easily
CASE: Unilever lengthens its time horizons
FOCUS: Intangibles and the business case
Chapter 3: World Is Tilting Toward Embracers
External forces are pushing business toward adoption; cautious adopters are aiming to catch up
FOCUS: Unlikely partners unite
Chapter 4: Follow the Leaders
How to do what the embracers do — seven emerging practices
CASE: Clorox applies mainstream principles to the business case
Conclusion
A picture of the management future
Appendix
About the research; survey questions & responses
Interviewees, Acknowledgments and Additional Support
AUTHORS
Knut Haanaes is a partner and managing director in the Oslo office of The Boston Consulting Group, as well as the global leader of BCG’s Sustainability Initiative.
David Arthur is a consultant in the Oslo office of The Boston Consulting Group.
Balu Balagopal is a senior partner and managing director in the Houston office of The Boston Consulting Group.
Ming Teck Kong is a project leader in the Singapore office of The Boston Consulting Group.
Martin Reeves is a senior partner and managing director in the New York office of The Boston Consulting Group. He is also the global leader of BCG’s Strategy Institute.
Ingrid Velken is a project leader in the Oslo office of The Boston Consulting Group.
Michael S. Hopkins is editor-in-chief of MIT Sloan Management Review, which brings ideas from the world of thinkers to the executives and managers who use them to build businesses.
Nina Kruschwitz is an editor and the special projects manager at MIT Sloan Management Review, where she coordinates the publication’s editorial and innovation hub activities.
CONTRIBUTORS
Maurice Berns, Partner and Managing Director, BCG
Keith Bussey, Project Leader, BCG
Sarah Murray, Writer
Diederik Vismans, Consultant, BCG
Copyright © Massachusetts Institute of Technology, 1977-2011. All rights reserved.
Pingback: Duurzaamheid, omarmen of volgen | Blog van Harry
Is there a list of the companies that were interviewed for this study available?
George,
The interviewees are listed here: http://sloanreview.mit.edu/featuret/sustainability-advantage-interviewees-acknowledgments-and-support and p 27. of the PDF. The “About the research” section contains more information on this survey study.
Best,
Sean
Pingback: The 7 Habits of Highly Sustainable Businesses | Intuit Small Business Blog
The MIT report 2 years ago showed this trend. What has been missing has been the system that makes it an ethic as well as pervasive in everything, without being in separate components, practices or departments. I knew of dozens of companies who had worked with a powerful system that had produced such results for years along side extraordinary financial results. So I wrote The Responsible Business: Reimagining Sustainability and Success with Jossey Bass. It has been Named to CNBC shortlist for 2011 and called “the indispensible textbook for the responsibility movement” by Jack Covert at 800CEOREAD. http://www.carolsanford.com Also spoke to some of it on MIT World.
Pingback: Mindy Lubber of Ceres Shows That Sustainable Business Can Be Profitable Business - Ecocentric - TIME.com
Pingback: The Profitable Side of Going Green | News to Watch
Pingback: Good OM Reading: The Sustainability Embracers « Jay and Barry's OM Blog
Hi,
I wanted to know do you think sustainability has ethical risks for managers?
Pingback: What is green project management? « Project Green A to Z
Pingback: 02.10.11 | Green Strategies
Pingback: 02.10.11 | Green Strategies
Pingback: Embracer Advantage, Bright LED Lights, Sustainable ICFF, + a Green Foreclosure
Pingback: Reflections on the State of Sustainability « will duggan
Pingback: Estudo do MIT sobre adoção da sustentabilidade nos negócios: | Sustentabilidade e Resultados
Funny I was reading an article on the 100 most sustainable corporations in the world, issued in 2011, it highlighted the global corporations which have been most proactive in managing environmental, social and governance (ESG) issues. Leading country Japan with 19 companies environmental-friendly, followed by the US etc..check this report http://www.global100.org/images/stories/global100_website_pdfs/pr_global_2011_final.pdf interesting..
Pingback: What can we learn from the fourth anniversary of M&S Plan A? | business and sustainability – a work-in-progress
Pingback: The Profitable Side of Going Green | Jackpot Investor
Pingback: Environmental Ambition | Zero Carbon Society
Pingback: Sustainability survives the downturn « The New York Forum Blog
Pingback: What Color is Your Footprint? | gxtgreen
Pingback: Is Anyone Out There Listening? – Network for Business Sustainability
Pingback: Embracing sustainability – tips from the bigger firms |
Pingback: Y a-t-il quelqu’un qui nous écoute? - Actualités - Réseau entreprise et développement durable
Like lemmings following each other off a cliff, would seem more apropos.
Pingback: Embracing Sustainability is IN | Beyond Green