--- title: Sustainability is a Driver of Innovation, Not an Expense to Manage description: Sustainability is a Driver of Innovation, Not an Expense to Manage image: https://pages.thirdeconomy.com/hubfs/Innovation%20in%20ESG.jpg --- [![Third-Economy-logo-horizontal-1](https://pages.thirdeconomy.com/hs-fs/hubfs/Third-Economy-logo-horizontal-1.png?width=1500&height=381&name=Third-Economy-logo-horizontal-1.png "Third-Economy-logo-horizontal-1")](https://www.thirdeconomy.com/) [CORPORATE SUSTAINABILITY](https://www.thirdeconomy.com/corporate-sustainability/) [INSTITUTIONAL INVESTORS](https://www.thirdeconomy.com/institutional-investors/) [VIA3](https://www.thirdeconomy.com/ratings/) [ABOUT](https://www.thirdeconomy.com/about/) [NEWS & EVENTS](https://www.thirdeconomy.com/news-events/) [CONTACT](https://www.thirdeconomy.com/contact/) ![Innovation in ESG graphic](https://pages.thirdeconomy.com/hs-fs/hubfs/Innovation%20in%20ESG%20graphic.png?width=2500&height=785&name=Innovation%20in%20ESG%20graphic.png "Innovation in ESG graphic") # Sustainability is a Driver of Innovation, Not an Expense ***By Chad Spitler, CEO and Founder, September 2024***   Excerpt from ESG Today *![image-png-1](https://pages.thirdeconomy.com/hs-fs/hubfs/image-png-1.png?width=146&height=141&name=image-png-1.png)*The past 12 months have seen an unprecedented number of policies and regulations related to sustainability – from the SEC’s landmark climate risk reporting rule to California’s SB-261 and SB-253, to the EU’s ESRS and CSRD. But this ambitious agenda has been impeded, as legal challenges have tangled up regulatory proposals in the courts. The result is a stalemate of epic proportions, as corporations hit the pause button on their climate-related reporting and sustainability increasingly becomes perceived as a burdensome compliance exercise. Sustainability has been moved out of the strategy function and relegated to the lawyers and accountants of compliance. This is not only a new resourcing challenge but a big problem for our overall business landscape, as companies focus more on the “what” of reporting instead of the “why” of innovation. The act of disclosing has become more important than the content of the disclosures themselves. We need to stop thinking about sustainability as an expense for companies and start focusing on its role in innovation and revenue generation. Sustainability, at its core, is all about innovation ­– helping companies achieve competitive advantages, capitalizing on macroeconomic trends and ensuring long-term viability through market disruptions both in terms of cost savings AND revenue growth. Read the rest of the article on [ESG Today.](https://www.esgtoday.com/guest-post-sustainability-is-a-driver-of-innovation-not-an-expense-to-manage/)   [Click Here for More Thought Leadership from Third Economy](https://www.thirdeconomy.com/featured-insights/) - Turning visitors into leads. ### Want to receive our latest news and events? [Sign up here](https://www.thirdeconomy.com/contact/) --- ![Logo-1](https://pages.thirdeconomy.com/hs-fs/hubfs/Logo-1.png?width=200&height=47&name=Logo-1.png "Logo-1") #### CONTACT ## ​​Third Economy is a sustainable investment research and consulting firm. We work with corporations and institutional investors to understand how sustainability factors impact financial value. Our clients leverage this understanding to enhance and promote their own capabilities, thus building a more sustainable economy, a third economy.   370 7th St Suite 9, San Francisco, CA 94103   +1 415 935-0030   [Click here for business inquiries](https://www.thirdeconomy.com/contact/)   [info@thirdeconomy.com (all other inquiries)](mailto:info@thirdeconomy.com) --- 2024 Third Economy, Inc. All rights Reserved. [SUSTAINABILITY POLICY](https://www.thirdeconomy.com/wp-content/uploads/2023/09/3ECON-sustainability-policy.pdf) [DIVERSITY POLICY](https://www.thirdeconomy.com/wp-content/uploads/2023/09/3ECON-diversity-policy.pdf) [TERMS AND CONDITIONS](https://www.thirdeconomy.com/terms-and-conditions/) [PRIVACY POLICY](https://www.thirdeconomy.com/privacy-policy/) [COPYRIGHT POLICY](https://www.thirdeconomy.com/copyright-policy/) [SITEMAP](https://www.thirdeconomy.com/sitemap/)