Sustainability: external pressure, challenge or opportunity for leadership?

The topic is a priority for the vast majority of CEOs, but the implementation of concrete actions still faces barriers

In 2021, when I discussed some priorities for CEOs in the midst of the post-pandemic recovery scenario, sustainability was highlighted for 37% of them. Today, the subject has gained space and has become fundamental for half of Latin America's leaders, according to a new study by the IBM Institute for Business Value.

As the market transforms, consumers become more demanding and technologies advance, sustainability must be treated as a catalyst to define new business models while delivering more positive impact to society's needs.

The conversation about ESG has become an increasingly protagonist among institutions, governments and the population and, within the corporate world, the look at sustainability has gained a lot of strength. While CEOs are under more pressure to take concrete actions, whether from the board itself, investors or regulatory bodies, the vast majority (84%) believe that investing in sustainability in their companies will bring better business results in the coming years. five years, above the global average (80%) and indicate that they are directly involved in defining their company's sustainability strategy. However, they face barriers that still keep a distance between intention and execution.

Although it is necessary to take what is now a concern into action, sustainability must be a central part of the planning of companies that seek a promising future – for themselves, their partners, their customers and society.

Barriers to advancement

Despite believing that sustainability has the potential to accelerate business growth, CEOs face challenges in putting it into practice and indicated as the main inhibitors to more effective action the lack of clarity about ROI and economic benefits, in addition to regulatory barriers and a lack of data insights.

Sustainability at the heart of the decision?

While the leadership faces these difficulties to move forward, most are already taking actions to change this scenario. However, it is still a timid action when considering its connection with the strategy, and the topic is not yet addressed in a broad way – only 16% said they had implemented it throughout the organization.

Promising future

Regardless of when companies are in relation to sustainability,

whether in a more analytical stage, of compliance with regulations, execution of actions

operating in isolation or driving an organization-wide transformation, CEOs

Transformational leaders are already involving the entire C-Suite in this conversation and decision making. Using technology as an enabler, we see initiatives to bring applied innovation to areas such as climate change, sustainable agriculture, reducing waste in supply chains and managing energy efficiency from cleaner sources.

The time is now: it is indisputable that we need to act now and change starts with leadership. Our role is critical to lead by example, invest in what is needed, involve people and make sustainability a centerpiece of strategy across the entire company. The sustainable future is built in the present, and it is our mission to translate the leadership discussion into concrete and tangible actions, and to make it a reality for the good of our communities.

Tonny Martins is IBM's general manager in Latin America. The executive began his career as an intern at the company 29 years ago and has held several leadership positions in the Services, Solutions and Business Consulting segments.

Read more at: https://forbes.com.br/forbes-tech/2022/07/sustentabilidade-pressao-externa-desafio-ou-oportunidade-para-a-lideranca/