- 79% of executives surveyed in the country agree that sustainability is central to their business, but 40% say they face challenges to finance such investments;
- Organizations that base sustainability across the business are more likely to see financial benefits, yet only 30% of Brazilian respondents incorporate sustainability data and insights into operational improvements to a large extent.
A new global study from the IBM (NYSE: IBM) Institute for Business Value finds that while a majority of organizations recognize sustainability as important to their business strategy, many C-suite leaders face challenges financing such investments. Data collected from 5,000 global executives, including Brazil, highlights that organizations that implement sustainable processes within their operations see better impacts and financial results while spending less money than their peers.
The study "Beyond checking the box – How to create business value with sustainability built in”, revealed that a third (35%) of the executives interviewed in Brazil made significant progress in executing their sustainability strategies, an important increase compared to last year's 7%, but transforming ambitions into impact remains a challenge. Additionally, 40% of executives surveyed face obstacles to financing sustainability investments; six in 10 report that they need to make trade-offs between financial and sustainability results.
Organizations that implement sustainability more deeply into their operations show a significant difference in their results in the country. For example, they are 117% more likely to attribute an improvement in their revenues to their sustainability efforts and are 96% more likely to outpace their peers in profitability in Brazil.
“An organization’s approach to sustainability can halt its progress. In Brazil, spending on sustainability reporting exceeds spending on sustainability innovation by 46%. There is no quick fix, as sustainability requires intentionality” said Carlos Tunes, Sustainability Software Leader at IBM Brazil. “Implementing sustainability means taking it out of its isolated niche and integrating it across all business units. This drives greater impact from innovation, talent and the environment to the bottom line.”
“Implementing sustainability means taking it out of its isolated niche and integrating it across all business units” said Carlos Tunes, Sustainability Software Leader at IBM Brazil. (Source: IBM Disclosure)
Other important data about Brazil in this study:
Organizations continue to seek sustainability, while challenges remain in the country
- 79% of executives interviewed in Brazil agree that sustainability generates better business results.
- 79% of leaders agree that sustainability is central to their business strategies.
- 69% of executives say sustainability needs to be a higher priority in their organizations.
- 84% of them agree that high quality and transparent data are necessary to achieve better results.
- 39% also cite a lack of skills needed to advance sustainability.
- 48% of Brazilian organizations say that business benefits are essential to justify investments in sustainability; only 18% stated that meeting the objectives in themselves are sufficient to justify the investments.
Generative AI is expected to leverage efforts, despite sustainability not being part of innovation initiatives
- Only 30% of the executives interviewed in Brazil reported that they are incorporating sustainability data and insights into operational improvements to a large extent, while 17% say they are doing this with sustainability innovation initiatives;
- 53% of executives in Brazil agree that generative AI will be important to their sustainability efforts;
- 75% of them say they plan to increase their investments in generative AI aimed at sustainability.
This study highlights the urgent need for organizations to integrate sustainability objectives within their business strategies in Brazil. Furthermore, it draws attention to the application of technologies such as AI to achieve greater progress and profitability. The report also serves as a resource to help leaders by highlighting strategies, with the aim of helping companies with challenges around data, business integration and decision making.
To view the full study, visit: Link
