In recent years, a growing number of companies around the world have voluntarily adopted and implemented a broad range of sustainability practices. The accelerating rate of adoption of these practices has also provoked a debate about the nature of sustainability and its long-term implications for organizations. Is the adoption of sustainability practices a form of strategic differentiation that can lead to superior financial performance? Or, is it a strategic necessity that can ensure corporate survival but not necessarily outperformance?
Yes, Sustainability Can Be a Strategy
New research confirms that ESG can create competitive advantage.
February 11, 2019
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Summary.
The accelerating rate of adoption of these practices has also provoked a debate about the nature of sustainability and its long-term implications for organizations. Is the adoption of sustainability practices a form of strategic differentiation that can lead to superior financial performance? Or, is it a strategic necessity that can ensure corporate survival but not necessarily outperformance? Recent research suggests that sustainability can be both a necessity and a differentiator. Some sustainability activities are simply becoming “best practice” and so are a necessity. But the data suggests that some companies are creating real strategic advantage by adopting sustainability measures their competitors can’t easily match.