A recent Morgan Stanley survey reveals that the majority of companies see sustainability as a significant opportunity for value creation, with over 75% expecting benefits such as increased revenue and profitability, though many also foresee higher sustainability-related costs and necessary investments. The survey, which included over 300 companies from North America, Europe, and Asia Pacific with revenues exceeding $100 million, highlights that 85% of companies recognize sustainability's impact on long-term strategy. Of these, 53% view it as a primary value creation opportunity, and 32% see it as both value creation and risk management. Compliance with government regulations and moral obligations were also significant motivators.
Over 80% of companies anticipate financial gains from sustainability within five years, with improved access to capital cited by 77%. However, companies also predict challenges, such as higher costs from regulatory compliance and supply chain restructuring. Significant investments and conflicts with financial goals are barriers to implementing sustainability strategies. Nearly all respondents expect climate change to affect their business models by 2050, with some already experiencing impacts.
The survey underscores a need for greater board-level expertise in sustainability. Jessica Alsford of Morgan Stanley notes the convergence of sustainability and core business strategies, viewing sustainable practices as essential for long-term value creation and risk mitigation.
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