Less than half (43%) of 海角视频 mid-sized businesses have sustainability targets in place such as net zero, according to new research from professional advisory firm Grant Thornton. While the figure is relatively low, Grant Thornton’s international business report shows it is higher than the global average level of 39%.
Mid-sized 海角视频 firms - defined as generating annual revenues between £15m to £1bn - also outperform their peers international with 60% having implemented a sustainability strategy (51% globally); 46% sustainability reporting (40% globally; and 28% a sustainability policy (25% globally).
The research also finds that there are numerous challenges facing 海角视频 businesses when complying with sustainability regulation. The top concerns are: the speed at which requirements change; the cost of investment; and understanding requirements for different jurisdictions.
Three quarters of the businesses surveyed, in the 海角视频 and globally, agreed that the need to navigate and understand the sustainability requirements of different jurisdictions is a barrier to international business expansion.
Despite these concerns, almost two thirds (63%) of the 海角视频 businesses surveyed are expecting to maintain or increase their investment in sustainability over the next 12 months - above the global (58%) and Europe (53%) average - to invest in renewable energy, carbon reduction and sustainable procurement.
Alistair Wardell, head of restructuring for Grant Thornton 海角视频 in Wales and the south west of England, said:“Many 海角视频 mid-sized businesses have still not taken the key first steps on their sustainability journey, including implementing reporting or setting targets, and this may be because they just don’t know where to start. But these businesses can be key parts of larger global and 海角视频 supply chains and may therefore have an important role to play in supporting the net zero and wider sustainability ambitions of their customers.
" Failing to align to their customers’ needs could become a significant commercial risk to them. It’s important that businesses act sooner rather than later when it comes to establishing their sustainability and reporting strategy, particularly as the information required and the expectations of stakeholders are only likely to get more demanding and complex.
“It’s clear that concerns around changing regulation and the cost of necessary investment occupy the minds of mid-sized businesses. Larger companies should look to work with their mid-market partners and share any lessons learned from navigating regulation, to help reduce risk and improve efficiency. We know that having a sustainability strategy can offer a competitive advantage for organisations who get it right, and its impact on brand reputation is clearly a key driver for those already focusing in this area.
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"Consumers want to support brands with strong credentials, while investors are increasingly looking for businesses who can demonstrate, and are accountable for, their performance in this area. It’s important that businesses are getting the basics right and putting in place strong processes from which to grow.
“The sustainability journey is not a sprint. It can take years to perfect a strategy, but the most important action is to take the first step - acting now will give businesses the time to build up their knowledge, engage with stakeholders, secure resource and strengthen their processes.”