05/07/2011 16:01
The worst economic crisis in 75 years will make sustainable growth’s integration into mainstream business strategies a new way to measure and plan for growth according to CEOs surveyed for PwC’s Annual Global CEO Survey.
Responses from 1200 global CEOs found that businesses are facing up to the opportunities and risks associated with a growing population, competition for finite resources, climate change and altered assumptions about societal development.
Nearly half of CEOs said they would change their companies’ strategies with the next three years because they expect stakeholders to factor companies’ environmental and corporate responsibility practices into purchasing decisions.
Five key areas of focus through to 2014 as businesses go for ‘good growth’ were identified:
• Tapping into growing customer sentiment about environmental and corporate responsibility practices
• Opportunities for developing more eco-friendly products and services: Two thirds said they would look to their suppliers for help in developing and sharing new products and services
• Working more effectively with governments on issues involving global risks including climate change
• Protecting business against natural resource depletion that could threaten growth prospects
• Attracting the right people to deliver the strategy
Businesses were looking in more detail at their supply chain, not only for opportunities to work with suppliers to develop and share new products and services, but also at issues of environmental stewardship, labour practices and water use. CEOs said the scarcity of natural resources is more likely to derail growth than climate change or natural disasters are for the next three years.
Overall, over half of business leaders were optimistic that public /private partnership would become more effective at mitigating risks such as climate change, despite the lack of clear direction on a global climate deal.
Malcolm Preston, global leader, sustainability and climate change, PwC said:
“Good growth - economically, socially and environmentally sustainable - is no longer just an idea for the forward thinkers – it’s about being in the business of sustainable development.”
Responses from 1200 global CEOs found that businesses are facing up to the opportunities and risks associated with a growing population, competition for finite resources, climate change and altered assumptions about societal development.
Nearly half of CEOs said they would change their companies’ strategies with the next three years because they expect stakeholders to factor companies’ environmental and corporate responsibility practices into purchasing decisions.
Five key areas of focus through to 2014 as businesses go for ‘good growth’ were identified:
• Tapping into growing customer sentiment about environmental and corporate responsibility practices
• Opportunities for developing more eco-friendly products and services: Two thirds said they would look to their suppliers for help in developing and sharing new products and services
• Working more effectively with governments on issues involving global risks including climate change
• Protecting business against natural resource depletion that could threaten growth prospects
• Attracting the right people to deliver the strategy
Businesses were looking in more detail at their supply chain, not only for opportunities to work with suppliers to develop and share new products and services, but also at issues of environmental stewardship, labour practices and water use. CEOs said the scarcity of natural resources is more likely to derail growth than climate change or natural disasters are for the next three years.
Overall, over half of business leaders were optimistic that public /private partnership would become more effective at mitigating risks such as climate change, despite the lack of clear direction on a global climate deal.
Malcolm Preston, global leader, sustainability and climate change, PwC said:
“Good growth - economically, socially and environmentally sustainable - is no longer just an idea for the forward thinkers – it’s about being in the business of sustainable development.”
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