Fears over costs are preventing some businesses from committing to environmental investment – but many who do believe it saves them money.
A new survey reveals most business executives link success to their environmental performance across key operations.
They say environmental planning delivers competitive advantage, increased investment, and cost savings.
The survey found that companies with more developed environmental policies are three times more likely to report being ahead of their goals and twice as likely to experience improved capital access and competitiveness.
Ninety per cent of 500 senior executives questioned said they had better access to capital over the past five years, with 43% reporting significant gains.
A majority said environmental performance either significantly supports customer loyalty or retention, or is a key driver of competitive advantage and market growth.
The survey, conducted by sustainable solutions provider Onterris, included responses from companies located in North America, Europe, Australia and New Zealand, with revenue ranging from $250 million to $5 billion.
Nearly all responders said they had a dedicated environmental strategy or roadmap, with 76% setting clear, measurable targets and 75% reporting they are on track to meet them. Over half of the respondents (54%) called environmental performance a “core pillar” of strategy and long-term growth.
Companies also reported cost savings thanks to environmental planning, with most cutting back on waste handling and disposal costs, with 31% detailing a notable cost reduction (10% or more) and an additional 33% moderate (less than 10%) savings. A similar share of executives also said they experienced notable and moderate energy and water treatment cost savings.
By industry, 80% of chemical manufacturing respondents said they had a dedicated environmental strategy with clear targets in place, compared with 76% of companies across sectors. However, the solid waste and waste management sector and the industrial manufacturing sectors were most likely to respond that environmental implementation remained at an early stage, while more than a third of executives in the solid waste and waste management sector said they were behind on their environmental targets
Internal drivers of environmental planning include better risk management and resilience planning, followed by operational efficiency opportunities (44%) and technology transition opportunities (40%).
Only about half said they had a high level of confidence in the robustness of key environmental KPIs, and 49% said their investors and lenders regularly challenged published environmental data. The vast majority — 70% — said their investors required detailed climate transition plans outlining how decarbonization targets will be met.
Onterris chief operating officer James Laws said: “Environmental performance has reached an inflection point. What was once treated as a compliance obligation is now a material factor in how companies operate, allocate capital and compete. The next phase is execution. Organisations that can measure, verify and act on environmental data will outperform on cost, risk and market leadership.”
