IBM Finds Sustainability as a Must in Business, But Challenges Remain

The IBM Institute for Business Value released a study revealing the important role of sustainability in today's business strategies. While every organization understands the significance of sustainability, there's a gap between intention and action due to limited funds and practical difficulties. In this study, insights from 5,000 C-suite executives across various industries and countries reveal a complex landscape where ambition sometimes clashes with reality.

Key Findings: Ambition vs. Action

The study highlights a clear contrast between recognizing sustainability as a crucial business strategy and actually implementing it with adequate funding. Even though 76% of executives see sustainability as central to their strategies, 47% face challenges securing funds for sustainability initiatives. This difference highlights a broader issue in the corporate world: balancing immediate financial goals with long-term sustainability objectives.

The Cost of Sustainability: Investment vs. Outcome

Interestingly, organizations that fully integrate sustainability into their operations not only achieve better sustainability and financial results, but also save on costs compared to those less integrated. These organizations are 75% more likely to experience significant revenue improvements from their sustainability efforts and 52% more likely to outperform their competitors in terms of profitability. This suggests a more sustainable approach to sustainability itself, where incorporating these practices into business operations brings both environmental impact and financial gain.

The Role of Data and Innovation

The study reveals a significant amount of resources being allocated to sustainability reporting instead of innovation in sustainability. This prioritization shows a focus on compliance and external reporting rather than tangible improvements and innovative solutions. Although organizations recognize the importance of high-quality data in achieving sustainability goals, only a fraction successfully integrate sustainability data into their operations or innovation processes.

Generative AI: A Promising Solution

The study also discusses the potential of generative AI to revolutionize sustainability efforts within organizations. A majority of executives (64%) understand the importance of generative AI for sustainability, with 73% planning to increase their investments in this area. This positive view of generative AI indicates a future where technology could bridge the gap between sustainability aspirations and their actualization.?In conclusion, IBM's study shows that organizations need to rethink their approach to sustainability. Instead of treating it as a side project, sustainability should be integrated into the core of business operations. This integration can bring about greater financial benefits and help protect the environment. The study emphasizes the importance of incorporating sustainability objectives into overall business strategies, using data and AI technologies to drive innovation and efficiency.

In today's complex business landscape, it's clear that true sustainability requires more than just compliance and reporting. It needs to be ingrained in the fabric of how organizations operate.

For a more detailed analysis and strategies, you can access the complete study on IBM's website . Achieving sustainability may pose challenges, but the potential rewards for those who succeed are enormous. Going forward, the intersection of technology, innovation, and sustainability will undoubtedly shape the future of business.

DM me if you want to learn more and explore how IBM Sustainability software may help your business grow.

My name is Itzik Woda , and I am the Sustainability Sales Specialist of IBM Israel.

IBM is at the forefront of sustainable innovation, offering a suite of Sustainability Software designed to help organizations reduce their environmental impact, optimize energy use, and implement sustainable practices across their operations and supply chain.

Our comprehensive portfolio includes tools for carbon accounting and reporting, as well as AI-powered operations optimization solutions. We understand the unique sustainability challenges faced by businesses today and are committed to empowering organizations to achieve their environmental goals while improving operational efficiency and profitability.

As we navigate the complexities of sustainability, I am dedicated to supporting businesses on their journey towards a greener future. Whether your goal is to minimize carbon emissions, streamline resource management, or integrate sustainability into every aspect of your business, our solutions are here to guide you every step of the way.

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I invite you to connect with me on LinkedIn to discuss how IBM's Sustainability Software can transform your organization's environmental strategy. Together, let's drive meaningful change and build a more sustainable world for future generations.

IBM Sustainability Portfolio

• IBM Envizi ESG Suite
• IBM Maximo Application Suite (Assets Management)
• IBM Tririga (Smart Building Management)
• IBM DOORS Next (Engineering Lifecycle Management)
• IBM Sterling Order Management
• IBM Sterling Supply Chain Intelligence Suite
• IBM Sterling Data Exchange (B2B file exchange)
• IBM Environmental Intelligence Suite (global weather & climate data)