June 24, 2024

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70% of mid-sized businesses on track to incorporate sustainability into business models

2 min read

New research has found that 70% mid-market firms are currently planning, implementing, or have already implemented a sustainability strategy.

More strikingly, as many as 9 in 10 are planning to invest at the same or an increased rate to put their sustainability efforts into practice, driven by the belief that strong ESG (Environmental, Social and Governance) performance enhances their attractiveness as a business to potential investors, acquirers and partners. But a lack of resource and funding is challenging these ambitions.

The study surveyed listed, private and private equity backed mid-market companies on their attitude and actions towards sustainability. It found that the businesses surveyed consider ESG as a gateway to strategic growth opportunities, access to funds and investment: 63% agreed that strong ESG performance makes their organisation more attractive to potential partners and acquirers and 58% that it makes their organisation more attractive to potential investors. Importantly, as many as 61% acknowledged that without an sustainability strategy they will be in a weaker position to (re)negotiate financing.

What’s more, companies with an established sustainability strategy experience major benefits that impacts their bottom line – from improved brand reputation , operational improvements and efficiency (39%) to stronger risk management. Something to aspire to for those still on the journey to develop and implement their approach.

With finance increasingly tied to sustainability goals, what is currently a competitive advantage will likely become an established norm.

Despite progress and ambitions, challenges remain

What’s challenging progress is that mid-market companies cited concerns about the prospect of achieving their ambitions. The biggest concerns raised, by 1 in 3 of respondents for holding back their efforts, were lack of resource and funding, a situation that has worsened over the past two years as a result of rising costs. This…

Business Matters

2023-10-19 12:35:57

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