"Embracer" companies making sustainability a critical topic of importance are benefiting more, new report finds.

While some businesses are putting sustainability high on their corporate agenda, others are going at it in pieces, focusing more narrowly on "energy cost savings, material efficiency, and risk mitigation," according to a new study.

The MIT Sloan Management Review and The Boston Consulting Group have released their 2nd annual Sustainability & Innovation Global Executive Study which reveals a significant divide in the world of "sustainable business."

And who do you think are doing better?

Well, yes, you read the headline, turns out the "embracers," as the researchers termed businesses in the first group, the folks who care more about the endangered plants and animals of the world (not to mention humanity), are doing better. But the "cautious adopters" (members of the second group) are, for the most part, looking to catch up. The whole business world is now leaning towards the way of the embracers, the study found.

Embracers

Embracer companies are now creating, in the real world, the definition of a holistically green business. "The report identifies seven specific practices exhibited by embracer companies, which together begin to define sustainability-driven management," MIT Sloan Management Review notes. "These include the need to move early, even if you don’t have complete information; to be authentic and transparent both internally and with the external stakeholders; and to work aggressively to 'de-silo' sustainability, integrating it throughout company operations."

Embracers were more heavily large, resource-intensive companies. They see sustainability as offering a competitive advantage, they drive it from both the top and bottom, and integrate it throughout their companies.

There were a number of benefits embracers anticipated from deeply incorporating sustainability into their agendas, but there were some unexpected benefits and benefits that far exceeded their expectations as well.

Overall, the biggest benefit identified was "improved brand reputation." This currently gives companies a competitive advantage. However, as mentioned above, the whole businesses world is moving toward this model. So, it seems that it is becoming more and more of a basic necessity and, eventually, if you don't have it, you just won't be able to compete.

Sustainability is seen as being most critical in the automotive industry right now. Approximately 80% of those surveyed saw sustainability as a critical necessity in that industry now. Perhaps it won't be too long before that is the case in all industries.

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