Decision Maker Attitudes and Approaches Towards Sustainability in Business in 2011Accenture C-Suite Executive Research in China, North America and the United Kingdomwww.accenture.com/sustainability24

1

The majority of businesses say that the benefits resulting from their sustainability initiatives have exceeded expectations, according to an international survey by Accenture.

The survey of 247 C-suite decision makers in North America, United Kingdom and China revealed that 72 percent think the benefits of their sustainability initiatives exceeded expectations especially around brand attributes and costs. The majority of respondents view sustainability as an integral part of their business, but around a third see it as just peripheral. Two thirds believe sustainability initiatives are an investment for a business, not just a cost—but still a third are less sure.

Most companies that responded to the survey have at least a few sustainability programmes, with over a third having many. Even those without say they are still trying to implement sustainability initiatives and are likely to introduce at least some in the next year. A strong majority believe their company is investing the right amount in sustainability, with the view that next year they will invest somewhat more. Genuine concern for the environment and/or society as well as reducing energy and material costs are the main drivers of sustainability initiatives, while the cost of such initiatives is the main barrier followed closely by the inability to measure.

The survey also showed, however, that a hardcore of about a third of business leaders have yet to be convinced of the value of sustainability, thinking that it is peripheral to their business and that their business invests too much in sustainability business practices.

The survey was conducted for Sustainability 24, Accenture’s global online event that brought together hundreds of leaders in the field of sustainability on May 25th 2011. The Sustainability 24 web address is http://www.accenture.com/sustainability24

Sustainability Benefits Exceed Expectations for a Majority of Businesses

For over 2 in 3 sustainability is important to their company—even more so for those that already have initiatives, and, not surprisingly less so for those without.

How important is sustainability to your company? Among those with initiatives

2%Not very important

2%Not at all important

30%Somewhat important

67%Very important

Among those without initiatives

13%

25%50%

13%

70%

28%

2

Most companies see more benefits than expected with sustainable initiatives, specifically around brand attributes and costs.

Most view sustainability as an integral part of their business, but around a third see it as just peripheral.

2 in 3 believe sustainable initiatives are an investment for a business, not just a cost—but still a third are less sure.

Which of the following is closer to your view?

Sustainability is an integral part of our business

or

Sustainability is a peripheral part of our business

68%

32%

Do you view spending on sustainable initiatives as a cost or an investment?

34%

More of cost More of an investment

66%

Benefits to initiatives (among those w/initiatives) How have the benefits from sustainable initiatives compared to expectations?

Improved reputation and trust 49%

Seen as a responsible company

Lower costs

Improved brand

Met requirements of customers orsuppliers

More competitive

Improved staff moral

Driven innovation

Combated rising energy costs

Increased consumer demand

Entered new markets

Developed / sold new products andservices

Helped recruit new employees

None of these

Other

47%

42%

41%

38%

37%

36%

34%

33%

31%

27%

25%

20%

0%

0%

24%

4%

72%

Lower

As expected

Higher

Much higher

52%

20%

3

A strong majority believe their company is investing the right amount in sustainable initiatives, with the view that next year they will invest somewhat more.

However, more are likely to say they spend too much than too little

Next Year’s Investment Levels Current Investment Levels

21%

60%

11%

1%

7%

2%1%

12%

12%

12%

Too much The right amount

Too little Far too littleFar too much

Much less

Somewhat less

Same amount

Somewhat more

Much more

Most think the businesses sector is doing enough and 7 in 10 say it will cost a business more to be a “sustainable business”.

Do you think business are doing enough to make sure their working practices are more sustainable?

Does having a green, or more sustainable business, cost…?

Equal amount say business are doing to much/too little

21%

28%

45%

23%

3%7%

Too much The right amount

Too little Far too littleFar too much

28%

51%

24%

5%1%

19%

About the same or less

30%

A littlemore

About thesame

A little less A lot lessA lot more

Most companies have at least a few sustainable programmes, with over a third having many.

Does your company currently have any sustainable initiatives?

38%

55%

3% 3%

Yes, many Yes, few Don’t know None

Respondents read:When thinking about sustainability, we’re referring to the way an organisation, on its path to high performance, creates value for its stakeholders by leveraging its assets and capabilities to drive innovation and profitable growth and striving for a positive economic, environmental and social impact.

4

Even those without initiatives say they are still trying to implement sustainable initiatives and are likely to introduce initiatives in the next year.

Currently most companies reduce electricity and implement green IT. Looking forward, they plan for more Green IT and sustainable innovation in new products.

If have no initiatives: Which of the following is closest to your company’s introduction of sustainable initiatives?

If have no/don’t know initiatives: How likely are you to introduce sustainable initiates in your company next year?

75%

We tried and failed to

implement sustainable initiatives

7%

Very likely

13%

Not verylikely

20%

Not at alllikely

60%

Somewhat likely

25%

Never tried

0%We tried and are still working on

trying to implement sustainable initiatives

0%

27%

24%

32%

32%

31%

30%

31%

26%

28%

26%

37%

33%

40%

28%

1%

21%

23%

28%

32%

33%

35%

36%

37%

38%

39%

44%

47%

51%

51%

Other

Carbon trading capabilities

Only use Fair Trade suppliers

Carbon emissions management

Maintain partnerships with environmental organisations

Smart buildings

Water & waste management

Promote green transport initiatives for employees(e.g. cycling or car sharing or electric vehicle concessions)

Reduce the amount of packaging your company uses when selling

Sustainable supply chains

Sustainability performance management & disclosure

Sustainability based innovation and new products or services

Sustainability talent and skills initiatives

Green IT

Reduce the amount of electricity used

5

A strong majority believe their company is investing the right amount in sustainable initiatives, with the view that next year they will invest somewhat more.

General concern, reducing costs and expectations drive sustainable initiatives, while set-up costs, lack of interest and belief in benefits are the largest barriers.

Drivers of initiatives (among those w/initiatives) Barriers to initiatives (among all)

Other

None of these

Staff and recruitment pressure

Investor pressure

Regulatory requirements

Competitive differentiation

Reputation / brand / trust

Opportunities for business growthand higher margins

Consumer / customer expectation

Reducing energy and materialscosts

Genuine concern for environment / society

None of these

Other

Don’t think that sustainable alternatives will work as well for their business

Investors don’t value / reward company forsustainable investments

Company cultural inhibitors

Lack of senior leadership commitment

Lack of consumer interest

The belief one company can’t make a difference to global warming

The government / local authorities don’tprovide enough incentives

Inability to measure sustainability initiatives

Cost of sustainability initiatives

0%

0%

24%

25%

31%

35%

44%

45%

47%

50%

53%

7%

2%

13%

21%

23%

24%

24%

29%

30%

31%

43%

Brand and businessgrowth also key

Drivers to initiatives Benefits of initiatives Barriers to initiatives1st Investor pressure Improved reputation and trust

and

Lower costs

Cost of sustainability initiatives

2nd Regulatory requirements Combated rising energy costs The government / local authorities don’t provide enough incentives

and

The belief one company can’t make a difference to global warming

3rd Consumer / customer expectation

and

Opportunities for business growth and higher margins

Seen as a responsible company Company cultural inhibitors

and

Lack of consumer interest

and

Don’t think that sustainable alternatives will work as well for their business

6

While both are seen as on the right track with sustainable initiatives, business is seen as doing a better job than the government.

Do you think sustainability initiatives of business, overall, are on the right track?

And business is seen as having the most responsibility and success in promoting progress and innovation.

Most say the level of the financial sector's investment is about right—but equal amounts say it is too much or too little—most only have some confidence in their ability to provide funding.

Business Government

85%

15%

Right track Wrong track

72%

28%

Right track Wrong track

Confidence in the financial sector to provide funding for sustainable technologies

Financial Sector’s Investment level in Sustainable Initiatives

19%

45%

21%

7%7%19%

56%

18%

Far toomuch

Too much The rightamount

Too little Far too little

No confidence

Not much confidence

Some confidence

Lots of confidence

17%

21% 28%

25% 49% 27%

28% 47% 26%

36% 41% 23%

Doing the most to drive action towards innovative sustainable solutions

Doing the most to drive action towards innovative sustainable solutions

More responsible for ensuring progress in a sustainable way

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About Accenture Sustainability ServicesAccenture Sustainability Services helps organizations achieve substantial improvement in performance and value for their stakeholders. We help clients leverage their assets and capabilities to drive innovation and profitable growth while striving for a positive economic, environmental and social impact. We work with clients across industries and geographies to integrate sustainability approaches into their business strategies, operating models and critical processes. Our holistic approach encompasses strategy, design and execution to increase revenue, reduce cost, manage risk and enhance brand, reputation and intangible assets. We also help clients develop deep insights on sustainability issues based on our ongoing investments in research, including recent studies on consumer expectations and global executive opinion on corporate sustainability and climate change.

Find out more at www.accenture.com/sustainability or contact us at sustainability@accenture.com.