IBM: Sustainability Prioritized in Business Strategies, Companies Struggle to Fund Efforts – GWC Mag

IBM’s recent global study shows that while business executives increasingly prioritize sustainability within their business strategy, many have faced obstacles when it comes to funding sustainability investments.

The study surveyed 5,000 C-suite executives across 22 industries and from 22 countries. From these respondents, IBM found that 47% of executives surveyed struggle to fund sustainability investments, while six in 10 report having to make trade-offs between sustainability outcomes and financial gains.

These findings, however, do not necessarily mean that companies are failing to pursue sustainability measures. IBM also found that 75% of executives surveyed agreed that sustainability drives better business results, while 76% considered sustainability central to their business strategy. About a third of executives claimed they had made significant progress on their sustainability strategy, representing a 10% increase from the previous year.

The main issues companies face stem from funding, skilling, and operationalizing actions. In other words, companies may need to embed sustainability more deeply into their overall operations, according to IBM.

Business Leaders Cite Lack of Requisite Skills for Sustainability Reporting

On their way toward implementing sustainability measures, companies find reporting and tracking progress often remains an obstacle.

With sustainability reporting still a comparatively new practice for many corporations, nearly 40% of executives admitted a lack of expertise needed to achieve sustainability initiatives. At the same time, a large majority of respondents (82%) admitted that high-quality data tracking and transparency are needed to achieve their sustainability goals.

In order to help fill some of the gaps, executives cite sourcing data from systems such as Energy Management Systems, Enterprise Asset Management, and CRM. Many also expect developments being made in terms of generative AI to further support their sustainability efforts.

Successful Sustainability Initiatives Equal Better Bussiness Success

Companies that have been able to embed sustainability throughout their operations have reportedly been able to convert these efforts into greater business value. Such businesses reportedly spend less on dedicated sustainability efforts as a share of their revenue, are exceedingly more likely to have aligned their data and sustainability strategies, and are 80% more likely to be using AI for sustainability.

“An organization’s approach to sustainability may be holding it back,” said Oday Abbosh, global managing partner of sustainability services for IBM Consulting. “There is no quick fix. Sustainability requires intentionality and a shared corporate vision. Sustainability needs to be part of the day-to-day operations, not viewed only as a compliance task or reporting exercise. By embedding sustainability across their business, organizations are more likely to drive internal innovation, attract and retain skilled talent, and be better positioned to deliver both positive environmental impact and financial outcomes.”