Many CEOs Think Sustainability a Top Challenge– Says Study
According to a recent survey, a growing proportion of CEOs see sustainability as one of the most critical issues to address in the next two to three years.
The IBM Institute for Business Value (IBV), a think tank for computer giant IBM, revealed how sustainability had gradually risen to the forefront of corporate priorities in a global study of 3,000 CEOs from 40 countries and 28 industries.
As the world recovers from the coronavirus pandemic, companies are under increasing pressure from stakeholders to prioritise how they will adapt as the world moves toward a low-carbon economy.
According to the research, sustainability ranked first on the list of problems for 51 per cent of CEOs, up from 32 per cent in 2021, with increased pressure from board members and investors.
An increasing belief that corporate sustainability measures may lead to improved business performance was also driving the focus.
IBV added, "The perception that environmental and social agendas require a tradeoff with improved business outcomes is crumbling. CEOs must address the inherent difficulties that come with disrupting the status quo. Finding the right roadmap is crucial."
According to the report, more than 80% of CEOs surveyed expect sustainability initiatives to boost corporate results over the next five years.
Despite the increased focus, the CEOs identified a variety of roadblocks, with 57 per cent citing uncertainty about return on investment and economic advantages as an impediment to achieving their sustainability goals. Poor data and regulatory constraints were also challenges.