Sustainability Spending Steadily Rising

In an article in the MIT Sloan Management Review, businesses were asked about their commitment to sustainability during the present economic crisis. Surprisingly, 42% of respondents answered that they are spending more to improve sustainability and 46% said they would spend more next year (2012). 17% said that they had made significant increases in spending on sustainability. The rest said they had not changed their spending. Only 1% said they would spend less.

There are more resources being spent by the companies that you buy from to make it possible! Companies are feeling the pressure from consumers to become more green. That research is backed up in another report “New Sustainability Report: The Embracers sieze the advantage” where respondents who have embraced sustainability, called the Embracers, report that they find it to be a competitive advantage to them and that it enhances their brand. Don’t believe this? Watch this video from Ray Anderson, CEO of the Interface carpet group. The second group of companies in the report called the Cautious Adopters claim to be using sustainability mainly as a strategy for reducing costs. Both groups reported that it enhances their brands as the most important reason to invest in sustainability.

This is all good news! It means that there are now probably almost enough consumers interested in sustainable solutions to drive corporations towards sustainability for their own good without government having to get involved to create regulations! This begs the question, when will we reach the tipping point? When will it become unacceptable for a company or brand to NOT be sustainable? According to a third MIT Sloan Management Review Report: “Sustainability: Nearing a tipping point” of the 23 January 2012, most managers now report that sustainability is on their companies agendas to stay and a substantial number say that they are profiting from sustainability. This trend is within and across all industries! Makes you wonder if sustainability won’t be the New Luxury of the Future! Indeed, do luxury and sustainability go hand in hand?

Are we there yet?

Read more:
Efficiency, understanding what consumes your energy and water and what your waste stream looks like.
Is an LED light bulb worth the upfront cost?
Do you have a road map to living green?
Green Financing options