Business rejects sustainability - survey

New Zealand businesses think innovation and customer retention are important for growth, but have little time for environmental sustainability, according to a survey.

Ranking top of the list of factors expected to affect growth in the next few years was operational excellence, followed by customer retention, innovation and cost containment, the online survey by SAP and the Employers and Manufacturers Association Northern found.

Over 55 percent of respondents had not defined what sustainability meant for their organisations, and only 29 percent had plans to identify and reduce their carbon emissions.

In contrast, 74 percent were active about corporate social responsibility.

Despite widespread publicity about environmental concerns, three quarters had no plans to become carbon neutral in the future.

Interest in managing carbon emissions was dominated by the local arms of companies headquartered across the Tasman, where the regulations were closer to implementation, said SAP New Zealand managing director Ian Black.

"Companies that take proactive steps to get ahead of the pack when it comes to addressing their carbon emissions will have a competitive advantage – particularly when looking to develop the export side of their business," Mr Black said.

The survey was conducted in late September, amid growing concerns about the global economy , and unsurprisingly businesses cited economic volatility and unpredictability as the biggest hindrances.

Attracting and retaining skilled staff also remained a problem.

Many businesses were also unhappy at not being able to access the new 15 percent tax credit for research and development. The tax credit did not apply to development such as upgrading models, which companies often considered to be R&D.

Amid ongoing uncertainty, nearly a third of respondents planned major asset purchases over the next two to three years. Investing in information technology was also considered important.

A total of 365 business owners and managers responded to the survey, with the largest proportion employing fewer than 10 full time staff.

- NZPA