Study shows increased profits for companies that embrace sustainability


MIT Sloan Management Review and the Boston Consulting Group find that at least half of companies surveyed report rise in profit after changing their business model. Here is an excerpt from a article which explain this study.


Companies reporting a profit from their sustainability efforts rose 23 percent last year, to 37 percent of the total, according to a new global study by the MIT Sloan Management Review (MIT SMR) and The Boston Consulting Group (BCG). The study is being released today in a report titled The Innovation Bottom Line.

The study, which is based on a survey of 2,600 executives and managers from companies around the world, also found that nearly half of respondents said their companies had changed their business model as a result of sustainability opportunities, a 20 percent jump over the previous year. The report calls these companies that have made business-model innovations « Sustainability-Driven Innovators. »

Interestingly, the study found that companies in emerging markets change their business models as a result of sustainability at a far higher rate than those based in North America, which has the lowest rate of sustainability-driven business-model innovation and the fewest business-model innovators.

« Sustainability-Driven Innovators see the opportunity differently than do companies that haven’t gleaned sustainability’s financial rewards, » explained David Kiron, executive editor at MIT SMR and a coauthor of the report.

They don’t dwell on it as a cost issue. They focus on how their efforts can increase market share, boost energy efficiency, and build competitive advantage.


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