Sustainability: The New Success Factor

 

Jan 05 2016

 

“Sustainability measures are not just for large companies. They’re universal,” writes Schneider Chairman and CEO Jean Pascal Tricoire in a recent blog. “The good news is that those businesses investing in sustainability not only find it helps the bottom line while cutting emissions, it delivers top-line benefits as well, driving increased revenues and customer loyalty.”

Tricoire championed this message at COP21 as Schneider’s lead delegate, but the also makes a business case for it in a new white paper, Sustainability: The New Success Factor. The following excerpts create a compelling argument for the electrical industry.

Facts about sustainability

• It’s good for profitability. Harvard Business Review cites more sustainable companies as outperforming their peers on net margin (+6%), return on assets (+3%), and return on equity (+11%) for the past eight years.

• It drives growth. According to Accenture, 78% of companies agree that sustainability is vital to the future growth of their business.

• It cuts costs. In an Ernst & Young / GreenBiz Group survey, 74% of respondents cited cost reduction as the principal driver of their company’s sustainability agenda.

• It delivers superior stock performance. Since 2006, companies listed on the Carbon Disclosure Leadership Index (CDLI) delivered returns of 67.4%, more than double the 31.1% return of the Global 500.

• Shareholders expect it. In an Ernst & Young / GreenBiz Group survey, 66% of sustainability executives report an increase in inquiries from shareholders and investors regarding sustainability-related issues.

• Customers expect it. According to Accenture, consumer demand is the primary driver of investment in sustainable initiatives at 62% of companies.

• The competition is doing it. 51% of companies surveyed by the Carbon Disclosure Project say they have a dedicated budget for energy efficiency programs; according to an Ernst & Young report, 70% of billion-dollar companies in the United States are implementing renewable energy integration and procurement strategies.

Read the full document: http://download.schneider-electric.com/files?p_Doc_Ref=Schneider_Electric_Sustainability_The_New_Critical_Success_Factor_essay.