Sustainability business survey: insights for directors

The 2023 report from the Sustainable Business Network (SBN), Sustainability in Aotearoa New Zealand’s Corporates, examines the prioritisation of sustainability and is based on insights gathered from interviews with senior executives from almost 30 organisations.

Download the SBN Pulse Report: Sustainability in Aotearoa New Zealand’s Corporates

 

From this report, there are a number of considerations for New Zealand directors:

 

• Momentum on sustainability within corporates is growing, and there is increasing focus on it from the board room.
• Sustainability has retained or even increased its importance during a turbulent period. The corporates interviewed confirmed their ongoing focus on sustainability over the next 18 months.
• The top two drivers for sustainability action are market pressure and regulation. Market drivers are particularly apparent among large exporters. Complying with the new Climate-related Disclosures regulation is a key focus for those required to report. Investors are increasingly wanting Environmental, Social and Governance (ESG) data.
• The main challenges are around the economy and the rising cost of living. Market conditions, such as escalating costs and supply chain instability, continue to disrupt. Other challenges include regulatory uncertainty, difficulty obtaining insurance, shifting behaviour (internally and among customers and suppliers) and avoiding greenwashing.
• On the whole, organisations are taking a holistic approach to sustainability strategy. The main focus areas are climate action, circular economy, water management, supply chain sustainability, employee engagement and indigenous partnerships. An emerging focus is nature.

 

The report’s author, SBN Head of Advisory and Impact Tori Calver, says the primary drivers for sustainability action were market pressure and regulation.

“Organisations exporting to Europe are seeing strong pressure to prioritise action in emissions reduction,” she says. “Plus, new regulations like the Climate-related Disclosures, which makes it mandatory for big companies to report on climate risk, are having an impact.”

Another factor driving the growing focus on sustainability is the increasing expectation from customers and investors for products and services that are more sustainable.

“Some businesses see sustainability as a competitive advantage, while others have noticed an increase in job seekers wanting to work for purpose-driven companies,” she says.

The main areas corporates are focusing on include climate action, circular economy practices (such as waste reduction) and supply chain sustainability. Other topics include water management, employee engagement and indigenous partnerships. An area of emerging interest is the impact of businesses on nature.

Despite this growing focus on sustainability in corporates, it remains secondary to profitability. The pace and ambition of change is likely to be impacted by signals and investment from government.

Read the full pulse survey summary from SBN

The research was conducted by the Sustainable Business Network and supported by the Ministry of Business, Innovation and Employment.