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                           RESEARCH
                             REPORT
                            SPRING 2012
                                          FINDINGS FROM THE 2011 SUSTAINABILITY & INNOVATION
                                          GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


                                          Sustainability Nears
                                          a Tipping Point



                                          SPONSORS




Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         The Sustainability Movement Nears a Tipping Point
         Some 70% of respondents who say their companies have put sustainability on the
         management agenda say they have done so in the past six years — and from this
         group, 20% say it’s happened in the past two years.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Most Managers Believe a Sustainability
         Strategy Is a Competitive Necessity
         Three times as many respondents say that
         sustainability is critical to being
         competitive now than say that it is not
         critical now but will be important in the
         future.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Embracers vs. Harvesters
         Compared to other companies, Embracers are
         three times more likely to be Harvesters.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Companies Are Upping Their
         Sustainability Commitments
         Three years of data indicate a striking
         increase in the levels of time and
         resources managers are committing to
         sustainability.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Resource-Intensive
         Industries Lead the Way
         Resource intensive
         industries have the highest
         direct impact on their
         physical and social
         environments. Their early
         adoption of sustainable
         practices is often linked to
         their long-term license to
         operate — and can also
         confer competitive
         advantage.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         External and Internal
         Drivers of Sustainable
         Business Practices
         Customers’ preference for
         sustainable products and
         services is a significant
         external driver of business
         model innovation.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Emerging Markets Have a Strong Commitment to Sustainability
         Emerging markets’ commitment to sustainability is increasing at a faster pace than in
         developed countries.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Europe Seen as Sustainability Leader
         Developed countries, home to more mature
         companies and industries, are still regarded as the
         regions with the best approaches to sustainability.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Harvesters Have Strong
         Organizational Support
         Compared to Non-Harvesters,
         Harvesters are significantly
         more likely to have strong
         CEO commitment to
         sustainability, a separate
         sustainability report, a
         separate sustainability
         function, a business unit
         focus on sustainability and a
         chief sustainability officer.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Harvesters Link Sustainability and Performance
         Harvesters are far ahead of Non-Harvesters when
         it comes to measuring sustainability-related key
         performance indicators (KPIs) and connecting
         sustainability performance with financial
         incentives.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT


         Sustainable Practices Improve
         Collaboration
         Profiting from sustainability
         goes hand in hand with greater
         collaboration among many
         groups, both internal and
         external to the organization.




                                                                                        © Massachusetts Institute of Technology, 2012


Friday, January 20, 2012
sloanreview.mit.edu


                           © Massachusetts Institute of Technology, 2012




Friday, January 20, 2012

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Sustainability Nears a Tipping Point

  • 1. In collaboration with RESEARCH REPORT SPRING 2012 FINDINGS FROM THE 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Sustainability Nears a Tipping Point SPONSORS Friday, January 20, 2012
  • 2. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT The Sustainability Movement Nears a Tipping Point Some 70% of respondents who say their companies have put sustainability on the management agenda say they have done so in the past six years — and from this group, 20% say it’s happened in the past two years. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 3. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Most Managers Believe a Sustainability Strategy Is a Competitive Necessity Three times as many respondents say that sustainability is critical to being competitive now than say that it is not critical now but will be important in the future. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 4. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Embracers vs. Harvesters Compared to other companies, Embracers are three times more likely to be Harvesters. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 5. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Companies Are Upping Their Sustainability Commitments Three years of data indicate a striking increase in the levels of time and resources managers are committing to sustainability. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 6. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Resource-Intensive Industries Lead the Way Resource intensive industries have the highest direct impact on their physical and social environments. Their early adoption of sustainable practices is often linked to their long-term license to operate — and can also confer competitive advantage. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 7. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT External and Internal Drivers of Sustainable Business Practices Customers’ preference for sustainable products and services is a significant external driver of business model innovation. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 8. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Emerging Markets Have a Strong Commitment to Sustainability Emerging markets’ commitment to sustainability is increasing at a faster pace than in developed countries. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 9. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Europe Seen as Sustainability Leader Developed countries, home to more mature companies and industries, are still regarded as the regions with the best approaches to sustainability. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 10. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Harvesters Have Strong Organizational Support Compared to Non-Harvesters, Harvesters are significantly more likely to have strong CEO commitment to sustainability, a separate sustainability report, a separate sustainability function, a business unit focus on sustainability and a chief sustainability officer. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 11. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Harvesters Link Sustainability and Performance Harvesters are far ahead of Non-Harvesters when it comes to measuring sustainability-related key performance indicators (KPIs) and connecting sustainability performance with financial incentives. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 12. MIT SLOAN MANAGEMENT REVIEW 2011 SUSTAINABILITY & INNOVATION GLOBAL EXECUTIVE STUDY AND RESEARCH PROJECT Sustainable Practices Improve Collaboration Profiting from sustainability goes hand in hand with greater collaboration among many groups, both internal and external to the organization. © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012
  • 13. sloanreview.mit.edu © Massachusetts Institute of Technology, 2012 Friday, January 20, 2012