ICT, Automotive, and Life Sciences / Biotechnology sectors lead APAC’s sustainability transition

SINGAPORE - Media OutReach - 24 June 2022 - A new survey from the SustainAbility Institute by ERM and GlobeScanfinds that sustainability leadership is increasingly being measured by evidence of action, impact, and above all the integration of sustainability into business strategy.The GlobeScan / SustainAbility Survey: 2022 Sustainability Leaders, which questioned more than 700 sustainability professionals across 73 countries in March and April 2022, reveals a significant evolution in the way companies are assessed on their sustainability leadership.High-profile CEO engagement and strong communication around sustainability have declined as indicators of recognized leadership. Purpose and goals remain important, but companies are increasingly considered as leadersfor putting sustainability at the core of their business models andstrategies, and for reporting on the tangible outcomes of their sustainability initiatives. Here are the key survey findings with Asia Pacific highlights:

• Top sustainable development challenge: 96% of sustainability experts say climate change is the most urgent (up 3 percentage points since 2021), followed by 88% for biodiversity loss and 86% for water scarcity.
• Leadership on the sustainable development agenda: National governments, the private sector and multi-sectoral partnerships are expected to lead the agenda over the next 20 years, with World Wildlife Fund being by far the most recognised NGO leader in sustainable development, at 35% globally, and leading in Asia Pacific at 24%.
• Corporate sustainability leaders in APAC: In Asia Pacific, Tata (13%), City Developments Ltd (6%) and Mahindra (4%) are the most recognised sustainability leaders among companies headquartered in the region. This regional leadership is attributed to integration of sustainability into the business strategy (16%), evidence of impacts/actions (10%) and products/services (9%).
• Top APAC sectors leading the sustainability transition: In Asia Pacific, the sectors most positively viewed when it comes to managing the transition towards sustainable development are Information Communications Technology (ICT) (36%), Automotive (33%) and Life Science/Biotechnology (26%).

Mark Errington, APAC Regional CEO, ERM, said, “The rise of the regional sustainability leaders shows a greater diversity of corporate sustainability leadership in Asia Pacific. The survey findings validate our observations that leading listed companies are charting in the right direction. However, there lies a gap as many are still transitioning from a checklist approach to identifying and operationalizing material climate change actions into their business, to bring about meaningful impact.”Commenting on the sector ranking, Mark said, “ICT is leading the pack in Asia Pacific – apart from setting net zero targets upon themselves, many are working with their suppliers to expand the sustainability goals across their supply chain. The research around electric vehicle and battery recycling will inevitably benefit across industries. With digital transformation and an increased uptake in renewables in the region, we are positive that the sustainability agenda will be accelerated across Asia Pacific.” Urgency of sustainable development challenges and sector performanceSustainability experts are now almost unanimous in declaring the urgency of climate change, while energy security is growing in perceived urgency in the context of the war in Ukraine. Meanwhile, other key sustainable development challenges, particularly social issues such as poverty, access to healthcare and opportunities for education have decreased in perceived urgency compared to last year.The majority of sectors are seen by experts to be performing worse on the transition to sustainability than they were a decade ago, with especially poor ratings for managing the transition to sustainable development given to the extractive sectors. However, the banking/finance, electric utilities, and automotive sectors are believed to have improved their sustainability transition performance in recent years.In the short-term, the experts surveyed believe that the war in Ukraine means attention focused away from the sustainability agenda. However, when asked about the long-term, an accelerated shift to renewable energy is the most widely-cited expected impact of the conflict on the sustainability agenda.Mark Lee, Director of the SustainAbility Institute by ERM said: “While experts anticipate that the war in Ukraine will reduce focus on the sustainability agenda in the near-term, survey respondents globally continue to underscore the urgency of action on climate change, biodiversity, inequality, and a host of other sustainability issues, calling on companies to provide more evidence of how they are embedding sustainability in their business models.”Chris Coulter,...