People are fed up with companies that ignore how their operations affect the planet, and most are willing to pay more to support eco‑friendly alternatives. In a Global Sustainability Survey by Simon‑Kucher & Partners—polling 10,000 people across 17 countries—85 percent of respondents worldwide said they’ve changed their purchasing behavior to favor sustainable options, even if it costs more. Unsurprisingly, customers expect businesses to back up environmental claims with science and hard data, not just marketing talk.

For asset‑intensive organizations, this means tracking hundreds—or even thousands—of corporate assets to report on various environmental outputs like carbon emissions, air and water pollution, deforestation, waste management, water usage, and more. EAM (Enterprise Asset Management) technology ties all these pieces together and provides broad visibility across operations. In addition to delivering traditional business metrics like asset efficiency, it lets companies set sustainability targets, monitor performance, and receive real‑time alerts when anomalies occur. Most importantly, EAM provides the detailed reporting needed to prove compliance with regulatory and industry standards—undeniable evidence of your sustainability commitment.

2. Hiring (and Retaining) Talent Becomes Harder

People want to be proud of their work and their employer. Over half of job seekers say they wouldn’t join a company without strong social or environmental commitments. And 96 percent of Millennials demand that their employers take active steps toward greater sustainability—especially important since Millennials are projected to comprise 75 percent of the workforce by 2025. To be an employer of choice, businesses clearly need a robust sustainability agenda.

EAM technology supplies the hard numbers a company can use to demonstrate its sustainability performance. With real‑time data and historical trend analysis, EAM shows where you stand today against your established benchmarks.

3. Investors Won’t Commit

Socially conscious investors rely on Environmental, Social, and Governance (ESG) criteria to gauge potential investments. If a company falls short on its ESG promises, investors favor businesses with proven track records and consistent results. According to PwC:

• 49 percent of investors are willing to divest from companies that haven’t taken adequate ESG steps.

• 59 percent say failure to act on ESG issues increases their likelihood of voting against executive compensation (and a third have already done so).

• 79 percent agree that how a company manages ESG risks and opportunities is a key factor in their investment decisions.

ESG standards cover everything from climate‑change policies to corporate governance. Smart EAM data and reporting integrate easily into your digital strategy, enabling asset‑intensive firms to share detailed reports and data so investors can assess potential environmental impacts and risk management.

4. Your Corporate Reputation Could Suffer Irreparable Damage

When companies ignore or willfully harm the environment—especially if they fail to meet publicized sustainability goals—the public and regulators react swiftly and sharply. Customers take a dim view of “greenwashing” and let it color their entire experience with your products or services.

A July 2022 Harvard Business Review study examined 202 large publicly traded U.S. firms on their Green Product Innovation (GPI) goals and actions, using customer‑satisfaction scores (ACSI), social‑responsibility metrics, and verified accounting and financial data. The result? Companies accused of greenwashing saw a 1.34 percent drop in their ACSI scores. While that may seem small, even minor dips can have major competitive repercussions.

With EAM technology, businesses can manage asset performance to meet stated commitments and proactively adjust course. If an environmental incident stems from an asset failure, EAM provides both historical and real‑time data to help determine how the failure occurred. When neglect isn’t a factor, reputational damage is often mitigated.

Achieve Your Sustainability Goals with EAM Technology

IFS partners globally to help companies set and meet ESG targets by delivering flexible, end‑to‑end asset‑management capabilities in IFS Cloud. To learn more about how IFS Cloud EAM can support your business, watch our sustainability webinar.

Source: https://blog.ifs.com/2023/03/how-does-the-lack-of-a-sustainability-strategy-impact-your-business/