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19 June 2024 / Quick Take
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Copy LinkThere’s a significant gap between C-Suite confidence in measuring return on investment (ROI) overall and measuring ROI on sustainability investments. While 41% of the executives polled by The Conference Board feel their companies are doing a poor job or are unsure about measuring the ROI of their sustainability investments, only 17% feel the same way about measuring ROI in general.
Companies need to accurately assess the true financial value of their sustainability investments rather than limiting themselves to only accounting for tangible impacts and risks in areas such as lower carbon emissions, water protection, or waste reduction. To get a more accurate assessment, companies should include factors such as increased brand loyalty, new revenue streams, employee engagement, or improved operational efficiency. Demonstrating the true financial value of sustainability is a business imperative to show investors and other stakeholders that it contributes to the long-term success of the company. It is also critical to secure buy-in from internal decision-makers (e.g., chief financial officer, CEO).
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