Take our Top Story today and get it in front of your firm’s finance leaders…
So often we hear that “investors don’t ask” or “no one inside seems to care” or “our finance folks don’t believe in” when we talk with corporate connections about corporate sustainability at their firm. And, inside the company, skepticism can typically be found in the finance offices.
We have some good news “findings” for you today from the ING folks to add to the growing number of research studies demonstrating the sustainability business case. ING is a leading global financial institution (banking, financial service) of Dutch origin, with a strong European base, serving clients in 40+ countries; it is selected to be among the leaders in the Dow Jones Sustainability Index’s Bank Industry category.
The firm just issued a report — “From Sustainability to Business Value – Finance as a Catalyst” — based on survey results (analyzing the views of 200-plus US-based finance executives in financial services, manufacturing, tech, consumer goods, real estate, industrial engineering, telecom, media, agriculture, infrastructure, chemical, transport, and logistics).
The survey respondents included CFOs, financial controllers, finance directors and senior treasury professionals, with revenues in their firms of from $500MM to $20+ billion. The survey was intended to help to improve understanding of how financing and lending can support the goal of building a low-carbon, sustainability society.
The findings are encouraging for the most part, and resonated with us. In our discussion with many corporate managers, the conversation usually includes “encouraging greater Corporate Sustainability is important for me internally, especially with our tough-minded and often skeptical finance folks. So being able to make the strong business case is a critical task…”.
Here’s some help for you from ING:
The important role played by corporate finance and the benefits that these professionals identified were described in these ways:
“Almost half of the firms responding said that sustainability concerns have some level of influence on their business’s growth strategy…and 40%+ of firms with a mature sustainability framework in place said revenue growth is a main driver for acting.”
Supporting that portion of the business case?
- 87% of survey respondents in firms with sustainability frameworks (the “mature” firms) said they experienced better revenue,
- and 65% improved their credit rating.
ING states that it believes that financial institutions have a duty to explore how their financing can help to support energy transition and combat climate change. CEO Ralph Hamer is a “champion” in the Alliance of CEO Climate Leaders.
An important takeway is the ING CEO’s perspective:
“We are witnessing an important shift in how companies in the United States view sustainability. Our research shows that it is no longer just about cutting costs or creating positive brand awareness — sustainability strategies are being deployed as true revenue drivers,” said Gerald Walker, CEO, ING Americas. “The finance function holds the key to unlocking the business value of these strategies, and are crucial to pushing the sustainable agenda in the U.S. as the industry continues to mature.”
There’s more for you in the Top Story, which also has a link to the ING Report:
Research: U.S. Companies Implement Sustainability Strategies To Drive Revenues
(Friday – February 16, 2018) Source: Chem Info News – ING’s sustainability report, ‘From Sustainability to Business Value — Finance as a Catalyst’, published today, finds that revenue growth is the most important factor when deciding to implement sustainability strategies, as 39…