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YOUR HEADING HERE 10.05.2011 ROI of Sustainability in Sports: Phase 2 (preliminary results)

Measuring ROI of sustainability in the sports sector- preliminary findings

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During 2014 we extended our pilot study on measuring Return on Investment( ROI) on sustainability measures in the sports industry. This presentation at the BASIS conference in Cardiff presents some of the preliminary findings and conculsions

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Page 1: Measuring ROI of sustainability in the sports sector- preliminary findings

YOUR HEADING

HERE10.05.2011

ROI of Sustainability in Sports: Phase 2 (preliminary results)

Page 2: Measuring ROI of sustainability in the sports sector- preliminary findings

Who are we?

• niche sustainability consultancy

• focus on ESG compliance and embedding sustainability strategically and operationally

• various clients in the events and sporting sectors; particularly assisting to implement ISO 20121

• working with Ohio University to publish results of Pilot Study in a chapter for a sustainability and sports title

Page 3: Measuring ROI of sustainability in the sports sector- preliminary findings

Some clients

Page 4: Measuring ROI of sustainability in the sports sector- preliminary findings

Pilot Study: the Background

• Lack of information on ROI of sustainability strategies, particularly the intangible benefits

• Why the sports sector?– large scale events have major impacts

– wide reach; powerful vehicle for behaviour change and positive messaging around sustainability

– connections through BASIS = good starting point!

• Questions raised and data findings generated interest in further research: Phase 2

Page 5: Measuring ROI of sustainability in the sports sector- preliminary findings

Objectives of Phase 2 of Study

• Experience of Pilot Study influenced Phase 2

– less focus on ISO 20121; more focus on sustainability strategies in general

– questions more aimed at identifying financial drivers and ROI

– needed a larger sample

• Aim: produce practical guidelines with a dashboard for sports sector

Page 6: Measuring ROI of sustainability in the sports sector- preliminary findings

Methodology• Process

– literature review – raising awareness of Phase 2 through networks– calls for participation– survey monkey questionnaire– follow up interview (where possible)– collating of results in a report (in progress)

• Sample – survey: 20 respondents– interview: 12 out of 20 respondents

• Participants: venues and clubs, governing bodies and support organisations

Page 7: Measuring ROI of sustainability in the sports sector- preliminary findings

Limitations

• sample size and response rate

• single interviewee per organisation (no cross section)

• role of interviewee influences answers

• interpretation of sustainability and questions varied

• categorisation of participants – where to draw the line?

• didn’t manage to interview all survey respondents

• measurement and availability of ROI data– cost and resources

– variables

Page 8: Measuring ROI of sustainability in the sports sector- preliminary findings

Range of Sports Represented:

Page 9: Measuring ROI of sustainability in the sports sector- preliminary findings

Some high level findings:

• two categories of organisations interviewed :

– clubs and venues; and

– national governing bodies and support organisations

• disconnect between 2 categories on funding opportunities to advance sustainability

• organisation types findings differ

Page 10: Measuring ROI of sustainability in the sports sector- preliminary findings

How embedded is Sustainability?What does Sustainability mean?

• Clubs and Venues: Type I

Page 11: Measuring ROI of sustainability in the sports sector- preliminary findings

How embedded is Sustainability?What does Sustainability mean?

• Clubs and Venues: Type 2

Page 12: Measuring ROI of sustainability in the sports sector- preliminary findings

How embedded is Sustainability?What does Sustainability mean?

• Clubs and Venues: Type 3

Page 13: Measuring ROI of sustainability in the sports sector- preliminary findings

How embedded is Sustainability?What does Sustainability mean?

• NGBs: Type 1

Page 14: Measuring ROI of sustainability in the sports sector- preliminary findings

How embedded is Sustainability?What does Sustainability mean?

• NGBs: Type 2

Page 15: Measuring ROI of sustainability in the sports sector- preliminary findings

How embedded is Sustainability?What does Sustainability mean?

• Support Organisations:

Page 16: Measuring ROI of sustainability in the sports sector- preliminary findings

Drivers and Barriers: Clubs and Venues

• Principal driver for embedding sustainability:– fairly even distribution of a range of drivers

– cost reduction = most frequently raised

– external pressure = least frequently raised

– ‘doing good’ in case of social aspects

• Very broad range of benefits recognised by participants

Page 17: Measuring ROI of sustainability in the sports sector- preliminary findings

Barriers: clubs and venues

• Principal barrier to embedding sustainability:

– fairly even distribution of range of barriers

– three most common ones:

• lack of budget

• lack of adequate internal communication

• difficulty to measure sustainability

Page 18: Measuring ROI of sustainability in the sports sector- preliminary findings

How to build the business case?

• the business case:

– cost reduction; avoidance of legal fines

– case studies demonstrating range of benefits and what works from experience

– research on growing number of people acknowledging intangible benefits

Page 19: Measuring ROI of sustainability in the sports sector- preliminary findings

Some conclusions:• you only measure the benefit if it’s less than the

cost (environmental vs social)

• economic sustainability not recognised as a third pillar; embedded into the other two

• if cost saving continues to be a main driver –what can we do to put a financial value on intangible benefits OR do we shift emphasis on other drivers and how?

• case studies are crucial; must build a library of empirical evidence

Page 20: Measuring ROI of sustainability in the sports sector- preliminary findings

What’s next?

• Report is due to be launched in Dec 2014 at the International Sports Convention in Geneva.

• It will include:– overview of results, including graphs, tables and

narrative

– case studies

– practical tips

• Phase 3? To develop this into practical guidelines:– larger sample

– sponsorship opportunities

Page 21: Measuring ROI of sustainability in the sports sector- preliminary findings