Executives Tie Environmental Performance to Business Success
Environmental performance is tied to growth outcomes, not just compliance requirements.
This is according to a recent report, The Onterris Outlook: Why environmental performance is business-critical, which found that 54% of executives say environmental performance is central to long-term growth, signaling a shift in how companies define business value.
Environmental risks are increasingly shaping policy, markets and regulatory requirements, directly affecting how companies operate and invest. What were once viewed as longer-term or indirect challenges are now directly influencing input costs, asset reliability and supply chain stability. At the same time, organizations must navigate evolving regulations, emerging technologies and heightened scrutiny from regulators, customers and capital providers.
“Business performance increasingly depends on how well companies manage environmental risks, resource efficiency and regulatory compliance,” said Vijay Manthripragada, CEO of Onterris, in a statement.
“Environmental challenges today are systemic," Manthripragada added. "They cross borders, disrupt supply chains, influence costs and impact reliability and capital markets. This report reflects a clear reality: environmental performance is no longer peripheral. It is a core operating discipline required to manage risk and sustain growth.”
Key findings from the report include:
A measurable performance gap is emerging. Companies with more advanced environmental programs are three times more likely to report being ahead of their goals and twice as likely to report improved capital access and competitiveness.
Organizations with stronger environmental performance report financial and operational benefits. 90% report improved access to capital over the past five years, with 43% citing significant gains. Many report operational cost savings exceeding 10% across energy, water and waste management sectors.
Environmental performance is becoming a standard operating practice. Globally, 76% of companies have established environmental strategies and targets, and 75% report they are on track to meet them. Among higher-performing organizations, more than 70% are increasing investment in environmental programs.
“Environmental performance has reached an inflection point,” said James Laws, COO of Onterris, in a statement. “What was once treated as a compliance obligation is now a material factor in how companies operate, allocate capital and compete. The next phase is execution. Organizations that can measure, verify and act on environmental data will outperform on cost, risk and market leadership.”