5 months ago
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SAP Insights has revealed a growing trend among Australian businesses to prioritize sustainability as a strategic imperative, driven by the recognition that it directly impacts their competitiveness and profitability. The recent study, which surveyed 4,750 respondents across 21 nations and 29 industries, found that 68% of Australian organizations see a moderate to strong correlation between sustainability and their overall business performance
As the link between sustainability and business outcomes becomes more evident, Australian companies are ramping up their investments in sustainability solutions. According to the SAP Insights study, 49% of Australian businesses plan to increase their sustainability investments over the next three years, a significant jump from 38% last year. This trend underscores the growing awareness that sustainability is not just a corporate social responsibility but a key driver of business success.
Gina McNamara, Regional Chief Financial Officer at SAP Asia Pacific & Japan, emphasizes the importance of integrating sustainability into the core of business operations. She notes that more than one in ten Australian businesses already consider sustainability to be material to their financial results, with another 36% expecting it to become so within the next five years. McNamara stresses the need for organizations to treat carbon data with the same level of importance as financial data, combining environmental and financial decision-making in every business process.
SAP Insights Study Unlocks the Value of Sustainability Data
Despite the growing recognition of sustainability’s importance, Australian businesses still face challenges in proving the return on investment (ROI) of their sustainability initiatives. The SAP Insights study found that 40% of Australian companies struggle with this issue, higher than the global average of 33%. Other significant barriers include lack of funding, absence of an environmental impact strategy, and limited expertise.
To overcome these challenges and unlock the full potential of sustainability, Australian businesses must focus on extracting value from sustainability data. However, only 15% of Australian companies are completely satisfied with the quality of their sustainability data, a slight decrease from 17% last year and below the global average of 23%. This highlights the need for improved data collection and measurement practices.
McNamara emphasizes the importance of accurate, granular, and auditable sustainability data, integrated with financial data, to make informed business decisions. SAP’s sustainability solutions help businesses track and manage their environmental impact across various scopes, including Scope 1, 2, and 3 emissions. By leveraging these tools, organizations can gain a comprehensive view of their sustainability performance and make data-driven decisions to improve their competitiveness and profitability.
The SAP Insights study reveals a growing recognition among Australian businesses that sustainability is not just a matter of corporate responsibility but a critical driver of business success. As companies increasingly link their overall performance to sustainability, investments in sustainability solutions are on the rise. However, challenges remain in proving ROI and collecting high-quality sustainability data.
To overcome these hurdles, businesses must prioritize the integration of sustainability data with financial data, enabling them to make informed, strategic decisions. As McNamara points out, partnering with a technology provider like SAP can help organizations measure and act on sustainability data, driving competitiveness, profitability, and revenue growth. By embracing sustainability as a core business strategy, Australian companies can put themselves for long-term success in an increasingly environmentally conscious world.
