Is the Economic Downturn Good or Bad for Sustainability?

When the economy takes a dive, companies take a serious look at their resources and cut down on non-essential spending. Will sustainability programs be considered as an area to cut back on?

The value of sustainability programs are clear - reduced energy costs, increased productivity and efficiencies. I believe companies that are serious about sustainability will continue, if not step up, their focus. At BT, being green has reduced our energy costs, especially so when it comes to energy efficiency, and increased our energy security – so why wouldn’t we step up our efforts? The corporate customers I work with see the same benefits.

At a more strategic level, it is important to consider the impact this crisis will have on the willingness of shareholders to take a longer term perspective of corporate success. Whether considering social or environmental sustainability, I have always felt that taking only a short term perspective on investment is generally to the detriment of substantive sustainability strategies. Just the term ‘sustainability’ really says it all. I believe long-term sustainability initiatives reap true value for a company and its investors.

So a key question is will this economic downturn will act as a catalyst for investors to take a longer term view that gives more support to sustainable practices in the companies in which they invest? In my mind the jury is out on this one. I welcome your thoughts on the topic.