Strategic failings evident in corporate approach to sustainability

New research from BT has uncovered a significant mis-match between the perceived role of IT and communications technology in making business operations more sustainable, and the strategic planning undertaken to make it a reality.

Ninety per cent of organisations* from the public and private sector believe technology is part of the solution to reduce their impact on the environment (31 per cent say an important part). However, nearly half (41 per cent) have no plans or targets for achieving improvements, with one in five admitting that they are not using technology effectively to improve their sustainability.

Looking at different industries, the utilities sector is the most likely to have a plan for exploiting IT and communications to improve sustainability (66 per cent), followed by transport (58 per cent), retail and media and leisure (52 per cent), finance and the public sectors (51 per cent) and construction (44 per cent).

According to the study, a third of UK organisations across the range of sectors say the need to improve sustainability will be the single biggest driver of IT investment over the next five years. This was cited as more important than implementing new technologies such as unified communications (25 per cent), taking advantage of converged networks (14 per cent) or improving security (11 per cent).

But whilst the majority of organisations* recognise the benefits of operating more sustainably in terms of the bottom line, customer attitudes and overall reputation, 35 per cent consider it purely a tick box exercise to aid regulation compliance. Financial services businesses are most likely to view sustainability as a compliance issue (41 per cent) and utilities the least likely (16 per cent).

Tim Smart, CEO of BT Global Services UK, said: “The findings suggest that companies may be paying lip service to the issue of sustainability. Operating sustainably is important – and technology has a role to play in making it happen. However the lack of forethought given to how to exploit this opportunity means companies may fail to see real benefit from the efforts they are making and critically a return on their investments.”

Neil Hendry, Director of Consulting at Datamonitor, said: “In terms of building sustainability credentials, the research highlights a positive awareness regarding the impact different technologies can have on areas such as flexible working, more efficient supply chain processes, building services automation (for reducing and monitoring energy use), as well as the importance of ensuring employees aren’t disadvantaged through lack of IT skills. The challenge is for organisations to grasp these opportunities and make real changes to the way they do business.”

Interestingly, respondents* believe technology can be deployed most effectively to improve environmental impacts (44 per cent), as opposed to economic sustainability (32 per cent) or social responsibility (22 per cent).

Tim Smart added: “There is no escaping the fact that sustainability records are being called into question by stakeholders before purchases, partnerships or commitments are made. But technology shouldn’t be used just to achieve quick wins on the CSR ladder; networked IT services have a fundamental role to play in enabling more sustainable practices that bring opportunities and benefits in terms of competitiveness, productivity and even reduced costs.”

Emphasising the need for organisations to up the ante when it comes to improving sustainability, BT’s research conducted amongst UK consumers found that only three per cent of customers believe that businesses are fully open and honest about what they are really doing to work in a sustainable manner, while 33 per cent actually believe they exaggerate their actions in order to gain consumer favour.

Employees** across a range of industry sectors displayed similar scepticism. The research found that nearly a quarter (23 per cent) do not believe that the organisation they work for is environmentally and socially responsible. One in five believes that their employer only takes action when forced to by external pressures such as suppliers or customers.

Notes to editors:
When asked to name which industry respondents** perceived to be the most sustainable, the results were as follows* (graph image available on request):
• Utilities sector (24 per cent)
• Public sector (19 per cent)
• Retail (16 per cent)
• Construction (eight per cent)
• Transport (five per cent)
• Media and leisure (five per cent)
• Financial services (three per cent)