Companies remain unprepared for the effects of dwindling
natural resources, according to new research from the
Carbon Trust.
The study, amongst 475 senior executives in Brazil, China,
Korea, UK and USA, shows that many are not prepared to look at the
issue of resource shortages now and believe they will not need to
make significant changes in their business operations to combat
resource scarcity until 2018. Most consumer-facing companies
predict that they will only need to take action within the next ten
to 15 years at the earliest, meaning they may not have plans in
place until 2025.
This inaction was found to be widespread, with 43% of
organisations surveyed stating that they do not monitor the risks
to their business of environmentally-related shocks such as energy
price rises and environmental disasters. Over a half (52%) have not
set targets for managing the reduction of carbon, water or
waste.
However, when resource constraints become a reality,
60% of organisations think the cost of their products and services
will need to increase, 55% that they will need to engage in fewer
markets and 43% that they will deliver a less varied service or
product offering.
There is, however, a silver-lining for
companies in the UK, who are currently best placed to deal with a
resource constrained world. They spend the most on sustainability
and are the most likely to have a programme with
targets and reporting practices in place. They are
also the most confident that there is a business case for
managing and reducing carbon emissions, water and waste. Brazilian
companies are the least likely to have a sustainability programme,
with 51% saying they do not currently have one, compared to 13% in
the UK. A key reason for this is investment, as 76% of the
companies questioned in Brazil state they cannot afford the
investment required, compared to 31% across all countries
surveyed.
Across all organisations surveyed, it appears
that sustainability is a long way off from being embedded within
the boardroom. The sustainability buck stops with the board
in only 4% of organisations surveyed. A quarter (25%) of
respondents even state that no one is responsible or accountable
for sustainability within the company.
Download the infographic:
Are
businesses sleepwalking into a resource crunch? (PDF)
Read the
full press release
Find out more about our services and how our resource efficiency
diagnostic can help your organisation become more resource
efficient.