Study Reveals Struggle to Fund Sustainability Investments Despite Recognition of Importance

In today’s rapidly changing business landscape, sustainability has become a central focus for many organizations. A recent global study by the IBM Institute for Business Value revealed that 76% of surveyed executives agree that sustainability is crucial to their business strategy. However, despite this recognition, nearly half (47%) of these executives admit to struggling to fund sustainability investments.

The study, titled “Beyond checking the box – how to create business value with embedded sustainability,” highlights the importance of integrating sustainability into all aspects of a business. Organizations that embed sustainability throughout their operations are more likely to see financial benefits and outperform their peers in terms of profitability. Yet, only 31% of respondents reported that they incorporate sustainability data and insights into operational improvements to a great extent.

One of the key findings of the study is that organizations that prioritize sustainability are more likely to drive internal innovation, attract and retain skilled talent, and deliver positive environmental impact alongside financial outcomes. Despite the clear benefits of embedding sustainability, many organizations are still focused on meeting regulatory reporting requirements rather than creating real business value.

The study also identified key challenges that organizations face in their sustainability efforts, including funding constraints, a lack of necessary skills, and difficulties in operationalizing sustainability actions. However, there is a growing recognition among executives that technologies like generative AI can help supercharge sustainability efforts and drive progress in this area.

Overall, the study underscores the urgent need for organizations to integrate sustainability objectives within their business strategy and leverage technologies like AI to achieve greater progress and profitability. By taking a holistic approach to sustainability and prioritizing long-term value creation, organizations can not only drive positive environmental impact but also enhance their financial performance in the process.

To learn more about the study and its findings, you can visit the full report here: [link to the study]. As organizations navigate the complexities of sustainability in today’s business environment, it is clear that a strategic and integrated approach is essential for long-term success.