Carmen Ene, ComputerWeekly.com, December 16, 2024
Despite the news cycle being awash with coverage of the dire consequences of climate change, environmental advocates have struggled to make the case for a sustainable transition in 2024.
In some parts of the world, politicians have weaponised action on the environment, pedalling the misconception that sustainability is expensive, burdensome, and a threat to affordability and prosperity. Amidst a cost-of-living crisis and rising global energy prices, this has resonated, weakening support for a swift end to fossil fuels.
The EU’s resolve on climate policy is under pressure, too. Last month, the European Commission President Ursula von der Leyen announced that the EU would simplify three core pieces of environmental legislation, reversing changes that were made only in the last Parliament.
In this complex environment, it is not surprising that some businesses have become more hesitant to embrace sustainable alternatives and even revised their environmental, social and governance (ESG) targets, wary of the complexities of sustainability reporting, the perceived cost of implementing green solutions, and the impact on competitiveness.
However, the evidence tells a different story.
A 2014 Harvard University study comparing 90 “High Sustainability” companies with 90 “Low Sustainability” companies over 18 years (1993-2010) found that high-sustainability companies significantly outperformed their counterparts across key economic indicators, including proxies for economic growth and financial leverage.