About the report

This reports investigates the impact of authentic sustainability on business outcomes. Conducted by McCrindle, it surveyed over 1,000 full-time Australian workers in medium and large-sized organisations. The report introduces the Authenticity Index™ to benchmark sustainability performance based on employee perceptions.

Methodology

Respondents rated their organisations on commitments, culture, and communication using a 6-point Likert scale. Each measure included ten indicators, with scores ranging from 100 to -100. The average Authenticity Index™ score across Australian businesses was 35, indicating significant room for improvement in sustainability commitments.

The authenticity index benchmark

The Authenticity Index™ measures authentic sustainability through commitments, culture, and communication. The average score was 35, with culture scoring highest at 40, followed by communication at 39, and commitments at 26. This suggests organisations need to better define and implement their sustainability initiatives.

Unpacking our authenticity index scorers

Businesses were categorised into high, average, and low scorers. High scorers, averaging 66, invest in future needs and sustainability. Average scorers (25-45) balance immediate and long-term goals. Low scorers, averaging -7, focus more on current needs over future sustainability.

The advantage

High scorers in the Authenticity Index™ report better business outcomes, including talent acquisition, productivity, retention, innovation, resilience, and profitability. Authentic sustainability helps attract and retain talent, increase engagement and productivity, and drive innovation and profitability.

Advantage snapshot

High-scoring businesses see improved outcomes across various metrics. They report 81% customer growth and 72% profitability, compared to 60% and 48%, respectively, for low-scoring businesses. High scorers also demonstrate better culture, engagement, retention, innovation, and resilience scores.

Defining authenticity for your organisation

Authenticity involves aligning sustainability commitments, culture, and transparent communication. Businesses should focus on relevant sustainability issues, acknowledge successes and failures, and communicate progress honestly. This approach builds trust and reinforces authentic sustainability.

The key principles of authenticity

Key principles for achieving authenticity include allocating resources, integrating sustainability across the business, focusing on key initiatives, avoiding jargon, and maintaining transparency. Organisations should set aside 1% of net sales for sustainability initiatives and balance long-term projects with quick wins.