Deloitte: 45 countries piloting transformations in low emissions and climate-resilient development.

30 September 2011 - According to a new report by Deloitte titled "Sustainability 2011: a difficult coming of age" companies around the world have been cautious about investing heavily in sustainability oriented initiatives, which have often been seen as cost-drivers rather than sources of new efficiencies or revenues. Even the strongest proponents of the sustainability agenda are consistently tasked with compelling connections between sustainable business practices and increased economic success.

"The biggest impediment to driving forward sustainability measures has been the vacuum of global strategic leadership. Governments, multilateral institutions and the corporate sector have yet to agree on clear planet wide goals. Without clear guidance from governments, companies feel no immediate pressure to change their standard operating procedures," said Fadi Sidani, partner in charge for Enterprise Risk Services at Deloitte in the Middle East.   

He added: "Governments around the world have struggled with finding the right level of regulation and their role in facilitating sustainable business has proven fraught with uncertainty. This has caused sustainability funding to dry up."

The Deloitte report states that market shifts and disruptions are making the achievement of sustainable business models more difficult; surging industrial growth in emerging markets is placing heavy strains on the supply of commodities and other non-renewable sources.

It further adds, however, that socially responsible investment (SRI) has grown apace over the past decade. About $3 trillion in the US alone - roughly 12.2% of the $25.5 trillion in total assets under professional management - is committed to some form of socially responsible and sustainable investment. 45 countries in total are piloting transformations in low emissions and climate-resilient development.

The report concludes that some steps are being taken on a national level, particularly in the EU and China. There are likely to be new regulations in the UK to reform the licensing of water extraction rights for firms that extract and use large quantities of water, such as chemicals and manufacturing firms. In China, a promised $454 billion 'green stimulus' package will fund a broad array of clean energy and transportation technologies.

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© Press Release 2011