New HSBC survey: Corporate Australia’s focus on sustainability surges to new high amid bushfires, pandemic

• More companies in Australia have metrics in place to measure environmental, social and governance issues compared with 2019
• Customer demand a prime factor in new corporate sustainability practices
• Corporate push likely to accerelate further as economies transition to net zero carbon

Sales forecast to jump

More than four out of five (84%) Australian companies expect a ramp up in sales over the next year as a direct result of their efforts to incorporate sustainability principles in their business. The majority (40%) expect sales growth of up to 5% but more than a quarter (28%) believe their sales could surge by between 6% to 9%, with a smaller number expecting an even greater increase.

Steve Hughes, Head of Commercial Banking for HSBC Australia credits “the heat to go green” to the Australian public’s increased awareness of environmental issues and the understanding that companies play an integral role in supporting the transition to net zero carbon.

HSBC’s Navigator surveyed decision-makers in more than 10,000 companies in 39 markets, across Asia Pacific, Europe, the Americas and the Middle East including 200 in Australia, and revealed that three quarters (75%) of Australian businesses now have metrics in place to measure environmental sustainability (up from 68% in 2019).

Cutting carbon, energy use

In the last 12 months alone, the amount of Australian businesses measuring their carbon emissions has doubled (18% in 2020 vs. 9% in 2019) and the number of firms measuring their energy usage has risen to more than a quarter  (26% in 2020 vs. 16% in 2019). Those measuring green building products and services has jumped to 17%, compared to just 8% in 2019.

Hughes continued: “Not only are we seeing companies diversifying their product range, our research suggests that recent events have acted as a major catalyst for businesses to review their impact on the environment.”

Social sustainability is also now firmly in their sights, with 77% of Australian firms measuring their performance against this essential part of the ESG equation.

“It’s clear that opportunity favours businesses prioritising the sustainability agenda. To be less sustainable is to be at a disadvantage,” said Hughes.

Hughes concluded: “Sustainability has become a regular part of our conversations with our corporate clients as they seek to adapt their business models to make the transition to net zero carbon.”