New research from Aberdeen Group shows that, given the state of the economy, sustainability initiatives help ensure the long-term viability and success of the business ecosystem. In fact, Aberdeen’s data shows that far from being a philanthropic, “nice to have,” sustainability strategy has become a “must have” business imperative for companies across sectors and geographies.

According to Aberdeen, “The ROI of Sustainability: Making the Business Case,” is designed to serve as a roadmap for those companies attempting to match environmental and social stewardship to clear and measurable improvements to their operations and financial results to ensure the continued viability of their business.

The research benchmarks more than 200 enterprises involved in sustainability initiatives and outlines what “Best-in-Class” companies (those performing at the top 20% across several sustainability metrics) are doing to achieve their impressive gains. By incorporating sustainability objectives into performance management, fostering standard policies, and focusing on carbon and cost reductions, top performers achieved a 9% reduction in carbon footprint, a 7% reduction in facilities costs, and a 10% reduction in paper.

Other key findings include:
· The Best-in-Class managed to reduce energy costs by 6%, while “Industry Average” experienced a 4% increase, and Laggards' costs increased by 18%
· Top performers managed a 16% increase in customer retention rates while driving sustainability-related costs down by an average of almost 8% across the board
· Best-in-Class are 52% more likely to incorporate sustainability metrics into value chain performance management KPIs
· Best-in-Class are 52% more likely to use sustainability to guide major portions of their corporate strategy

“Gone are the days when pretty pictures in the annual report were enough to demonstrate sustainability and corporate social responsibility. A growing number of companies must provide verifiable evidence of social and environmental impacts,” said Cindy Jutras, vice president and research fellow, Aberdeen. “Yet, in order to justify the continued application of resources, companies must also demonstrate real business results. Leading companies are 52% more likely to incorporate sustainability performance indicators in measuring the performance of the full supply chain. This is often combined with sustainable sourcing strategies, focusing not only within their own four walls but also encouraging, or even demanding that suppliers demonstrate sustainable, responsible, ethical practices.”

A free copy of the report is available online.