8/10 companies choose financial fines over sustainability policies

A study undertaken Software AG, taking into account responses from 2,000 business decision makers, has fond that 84% of firms globally prioritise commercial success over environmental good.

Overall, 82% of those who engaged with the survey admitted that regulatory penalties are preferable to taking on sustainability initiatives. 

The damning results come at a time when the world’s leading economic event, the annual Davos summit, has seen calls for the business world to step up and follow on ‘credible’ net zero pledges rather than ‘greenwashing’. 

Despite the apparent lack of willing to seriously engage with sustainability, conversely respondents were clear that environmental credentials are major factors in purchasing decisions, staff intake and retainment. Overall, 97% of business leaders believe sustainability credentials are essential or important to their purchasing decisions, and a lack of clear strategy on sustainability is likely to lead to loss of staff, according to 84% of respondents. 

While technology has been identified as a major obstacle in adopting more pro-active approaches to sustainability, with 32% lacking appropriate tech and 47% failing to use it properly, the results also point to shortcomings in terms of ownership, responsibility and regulations. The fact that decisions are being made in terms of supply chain based on environmental record, but this does not influence internal policy, is particularly worrying, while choosing to pay fines rather than investing in sustainability must raise serious questions about how impactful those fines are. 

‘In the current climate, it’s no surprise that commercial objectives are a top priority – they have to be otherwise organisations cannot continue to operate. We are keen to help organisations to find solutions using the ‘Genius of AND’, where they don’t have to be torn between commercial and sustainability objectives,’ said Sanjay Brahmawar, CEO of Software AG. 

‘The right application of mission critical technologies can make enterprises more connected. When this happens, and data is free to move around it and be accessible to everyone who needs it, we will start to see progress in multiple areas at once,’ they continued.