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Sustainability as a Driver of Business Value

Sustainability is no longer seen only as risk management or regulatory compliance. It has become a core driver of long-term value creation.

According to Morgan Stanley’s latest Sustainable Signals: Corporates 2025 survey, 88% of companies worldwide believe that ESG practices (Environmental, Social, and Governance) directly contribute to long-term value. This figure has increased from 85% in 2024.

A similar study by the Centre for Sustainability & Excellence (CSE) in 2024 across the U.S., Canada, and Europe confirmed the same trend. Companies that have integrated ESG into their operations and strategies also report stronger profitability.

From Risk Management to Growth Strategy

The Morgan Stanley survey reveals that 53% of companies now see sustainability as a primary value driver, while only 12% continue to view it mainly as risk management. This shift reflects growing pressure from investors, consumers, and regulators. At the same time, businesses are realizing that sustainable strategies improve access to capital, enhance reputation, and build resilience during crises—all while boosting profitability.

In North America, acceptance of sustainability as a strategic value reached 89%, while in Europe it rose to 94%. By contrast, in Asia-Pacific, ESG is still largely perceived as a risk management tool.

If the same research were conducted in Greece, the results would likely resemble those of Asia. Many Greek companies still see ESG primarily as compliance. The reasons include lack of education, superficial approaches, short-term thinking, and concerns about implementation costs.

Measuring ROI on Sustainability

One of the most important findings of the Morgan Stanley survey is that 83% of companies can now measure the return on investment (ROI) of sustainability initiatives in the same way as other strategic investments. Moreover, 65% report that ESG results meet or exceed their expectations.

This evolution signals a turning point: ESG is no longer an abstract concept but a measurable contributor to business growth.

Key Accelerators of the Transition

The survey highlights the main factors driving companies to embrace sustainability more deeply:

  • Technological innovation (33%)
  • Customer demand (28%)

At the same time, climate change is becoming an unavoidable reality for business operations. More than 57% of companies globally reported being affected by extreme weather in the past year. In Asia-Pacific, the figure rises to 73%.

The most common events were extreme temperatures (55%) and storms (53%), leading to higher operating costs (54%), work disruptions (40%), and revenue losses from supply chain breakdowns (39%). In Greece, wildfires and floods regularly disrupt hundreds of businesses.

The Strategic Imperative for Business Leaders

The conclusion is clear: sustainability has moved beyond theory. It is now a boardroom and CEO-level priority with direct financial and operational impact.

Companies that act early and embed ESG criteria into their core operations will secure a competitive advantage. Those that remain passive risk being left behind.

International evidence proves that sustainability is not just an ethical choice. It is a source of added value, measurable impact, and long-term growth opportunities.

👉 In my work with organizations globally, I see this transformation daily. The sooner companies in regions like Greece embrace sustainability as a business opportunity—not just compliance—the sooner they will unlock real value for their shareholders, employees, and society at large.

 

This article was originally published in Greek in kathimerini.gr

I’m Nikos Avlonas recognized expert and thought leader in Sustainability, ESG and corporate Sustainability with over 30 years experience. 

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