Driving financial returns and strategic growth - Insights from a KPMG study
In today's ever-changing business world, sustainability has become a key factor in determining financial success. In our white paper “Is Sustainability Good for Financial Performance?”, we explore the relationship between sustainability and financial returns as well as the impact of sustainability investments on financial performance.
We examined the relationship between 60 sustainability metrics and gross profit margin, conducting an econometric analysis of more than 2,500 businesses across 18 industries and 60+ countries. Through surveys and studies, such as the ESG and Financial Value Survey, we identified the most valuable ESG efforts for companies across different sectors.
Is sustainability good for financial performance?
This study emphasizes the potential for sustainability to drive financial returns, while highlighting the importance of aligning related investments and decisions with broader business strategies.
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Sustainability strategies can only be sustainable if they drive growth by giving firms a competitive advantage. Moreover, sustainability practitioners report that measurement is a key challenge to secure resources and achieve cross-organizational alignment.
Our study provides a comprehensive analysis of the financial returns to sustainability, offering valuable insights for business leaders. Our findings are statistical relationships based on data from thousands of companies, but each company should carefully consider sustainability investments within the broader context of its overall business strategy and assess how each investment impacts its financial metrics through data collection and measurement. As the business landscape continues to evolve, sustainability will undoubtedly play a crucial role in shaping financial outcomes.
Business leaders can use these insights to prioritize sustainability investments that are most likely to yield financial returns. By measuring the impact of these investments, you can secure the necessary resources and achieve cross-organizational alignment.
Embrace sustainability not just as a moral imperative, but as a strategic advantage that can drive your company's financial success.
Ready to transform your business through sustainability? Contact us to learn more about how you can integrate these key indicators into your strategy and achieve lasting financial success.
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