Sustainability Core to Corporate Agendas
A recent report from Reuters cites an increasing number of Chief Executives now view sustainability as one of the biggest challenges to act upon over the next two to three years.
In a global survey of 3,000 CEOs spanning 40 countries and 28 industries, the IBM Institute for Business Value (IBV), detailed how sustainability has increased in importance and has now shifted to the core of many corporate agendas.
As the world rebounds from the disruption caused by the pandemic, companies are assessing how they will adapt as the world transitions to a low-carbon economy.
The report listed sustainability as the top challenge for 51% of CEOs (up from 32% in 2021) with greater demand for action coming from board members and investors.
Sustainability Linked to Business Performance
This focus was also being driven by a growing consensus that efforts around sustainability can lead to stronger business performance, with the report stating “The perception that environmental and social agendas require a trade-off with improved business outcomes is crumbling.”
Of the CEOs surveyed, more than 80% expect investments in sustainability to deliver higher business results over the next five years, the report showed.
Still Some Challenges Ahead
Despite the growing awareness of sustainability as a driver for business growth, the chief executives cited a number of obstacles on their path to increased sustainability, with some 57% citing uncertainty around return on investment and economic benefits. In addition, the report cited other challenges which included poor data and regulatory barriers.