{"id":6085,"date":"2025-05-13T15:12:18","date_gmt":"2025-05-13T19:12:18","guid":{"rendered":"https:\/\/sdgnews.com\/?p=6085"},"modified":"2025-05-13T15:14:41","modified_gmt":"2025-05-13T19:14:41","slug":"the-future-of-sustainability-in-business-depends-on-integration-ey-finds","status":"publish","type":"post","link":"https:\/\/sdgnews.com\/ar\/the-future-of-sustainability-in-business-depends-on-integration-ey-finds\/","title":{"rendered":"The Future of Sustainability in Business Depends on Integration, EY Finds"},"content":{"rendered":"<p><strong>Key Impact Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Companies with fully integrated sustainability strategies are 40% more confident in their 12-month business outlook<\/li>\n\n\n\n<li>Only 18% of businesses link sustainability to long-term strategy; 57% would cut sustainability initiatives first during downturns<\/li>\n\n\n\n<li>Boards and C-suites remain misaligned: 82% of board members see sustainability as standalone, versus 25% of senior leaders<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-companies-keeping-sustainability-separate-risk-falling-behind\">Companies Keeping Sustainability Separate Risk Falling Behind<\/h3>\n\n\n\n<p>EY\u2019s latest Long-Term Value and Corporate Governance survey reveals a persistent disconnect: while the business case for sustainability is clear, most companies still treat it as an isolated function. The survey, which includes 200 senior business leaders across the EU, UK, Norway, and Switzerland, identifies a critical gap in leadership alignment and strategic integration.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cInvestors increasingly recognize the value that can be realized through integrating sustainability into decision-making,\u201d said Fiona Watson, Vice President, Corporate Performance &amp; Accountability at the World Business Council for Sustainable Development.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Pressure Mounts on European Boards to Act<\/h3>\n\n\n\n<p>The research shows <strong>91% of businesses feel investor pressure<\/strong> to accelerate sustainability, and <strong>78% feel pressure from activists<\/strong>. Yet just <strong>18% of firms<\/strong> focus on long-term sustainability and <strong>only 19%<\/strong> align it with overall business purpose.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Gill Lofts<\/strong>, EY\u2019s Global Financial Services Sustainability Leader, noted: \u201cFinancial institutions are taking a much more commercial approach to sustainability. The focus is on managing risks, business resilience and maximizing revenues.\u201d<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Integration Drives Performance and Confidence<\/h3>\n\n\n\n<p>Companies identified as <em>Sustainability Integrators<\/em>\u2014just <strong>27%<\/strong> of the sample\u2014outperform their peers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>40% more confident<\/strong> in future performance<\/li>\n\n\n\n<li>Boards are <strong>1.5 times more effective<\/strong> in achieving sustainability objectives<\/li>\n\n\n\n<li><strong>Only 6%<\/strong> of them faced public backlash over sustainability\u2014compared to <strong>39%<\/strong> of non-integrators<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cSustainability cannot remain a siloed initiative; it must be recognized as a critical pathway for thriving businesses,\u201d said <strong>Gerard Gallagher<\/strong>, EY Global Sustainability Leader \u2013 Clients &amp; Industries.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-boards-and-management-aren-t-aligned\">Boards and Management Aren\u2019t Aligned<\/h3>\n\n\n\n<p>The report underscores a significant divide: <strong>82% of board members<\/strong> see sustainability as separate, but <strong>75% of senior executives<\/strong> believe it&#8217;s embedded.<\/p>\n\n\n\n<p>Boards also believe they perform well in this area\u2014yet C-suites disagree. This misalignment hinders progress. It may explain why <strong>80% of investors<\/strong> believe companies fail to justify long-term sustainability investments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-lessons-from-the-leaders-how-to-integrate-sustainability\">Lessons from the Leaders: How to Integrate Sustainability<\/h3>\n\n\n\n<p>EY identifies five key actions from leading companies:<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">1. Align Boards and Management<\/h5>\n\n\n\n<p>A structured \u201cvalue bridge\u201d framework helps align leadership on risks, financial impact, and long-term goals.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">2. Make Everyone Accountable<\/h5>\n\n\n\n<p>\u201cSustainability is built into engineering, procurement, M&amp;A and more,\u201d said <strong>Karin Hoeing<\/strong>, Group ESG Director at BAE Systems. Only <strong>8% of non-integrators<\/strong> share responsibility across the board, compared to <strong>50% of integrators<\/strong>.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">3. Build Company-Wide Skills<\/h5>\n\n\n\n<p><strong>83%<\/strong> of integrators report strong sustainability capabilities throughout their teams. Hoeing added: \u201cWe have awareness training internally and a global Supplier Code of Conduct for our suppliers.\u201d<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">4. Fund Sustainability Like Core Business<\/h5>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>James Murnieks<\/strong>, CFO of Siemens GB&amp;I, emphasized: \u201cWe approach investments by asking, \u2018Is it moving us forward in terms of our financial performance goals and our sustainability goals?\u2019\u201d<br><strong>90%<\/strong> of integrators are supported by adequate financing.<\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\">5. Leverage Technology to Deliver Results<\/h5>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Dr. Velislava Ivanova<\/strong>, EY Americas CSO, said: <em>\u201cTechnology enables companies to collect more reliable data, manage performance, and support innovation across value chains.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-conclusion-full-integration-is-no-longer-optional\">Conclusion: Full Integration Is No Longer Optional<\/h3>\n\n\n\n<p>Sustainability is no longer a niche concern\u2014it\u2019s a business imperative. Yet only an aligned leadership team can unlock its value.<\/p>\n\n\n\n<p><em>\u201cOnly an aligned leadership team can make this happen,\u201d<\/em> the report concludes. Boards and C-suites must act now to integrate sustainability into the core of business strategy or risk missing financial, reputational, and operational upside.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-questions-for-boards-to-consider\">Questions for Boards to Consider<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How well are we integrating sustainability into our core business strategy?<\/li>\n\n\n\n<li>How aligned are we, as a board, with senior management on sustainability priorities?<\/li>\n\n\n\n<li>Do we view sustainability and commercial goals as complementary or separate?<\/li>\n\n\n\n<li>Are all levels of management and staff engaged with the sustainability strategy?<\/li>\n\n\n\n<li>Do we fund and evaluate sustainability initiatives as rigorously as other investments?<\/li>\n\n\n\n<li>Are we adapting our sustainability strategy to evolving global dynamics and expectations?<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p><a href=\"https:\/\/www.ey.com\/content\/dam\/ey-unified-site\/ey-com\/en-gl\/insights\/long-term-value\/documents\/ey-gl-the-future-of-sustainability-in-business-why-success-depends-on-integration-05-2025.pdf\"><strong>Read EY Long-Term Value and Corporate Governance Survey 2025<\/strong><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Key Impact Points: Companies Keeping Sustainability Separate Risk Falling Behind EY\u2019s latest Long-Term Value and Corporate Governance survey reveals a persistent disconnect: while the business case for sustainability is clear, most companies still treat it as an isolated function. The survey, which includes 200 senior business leaders across the EU, UK, Norway, and Switzerland, identifies [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[33],"tags":[1220,437,61,66,1219,67],"class_list":["post-6085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-sustainability","tag-corporate-governance","tag-ey","tag-sdg-news","tag-sdgs","tag-sustainability-in-business","tag-un-sdgs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Future of Sustainability in Business Depends on Integration, EY Finds - 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