Some 99% of global CEOs have stated their intention to either maintain or expand their sustainability commitments, the latest CEO Study from the United Nations Global Compact and Accenture has found.
While just 15% of respondents state that they ‘feel well prepared’ for major global challenges, such as inflation, trade concerns and climate change, close to nine in ten (88%) state that the business case for sustainability is stronger than it was five years ago.
“CEOs are crystal clear: sustainability has moved from moral imperative to business fundamental,” commented Sanda Ojiambo, CEO and executive director of the UN Global Compact. “This study sets out a pragmatic playbook: work with regulators, meet fast-rising consumer expectations, invest in technology and skills, and communicate progress credibly.”
‘A critical time’
The report, Turning the Key: Unlocking the Next Era of Sustainability Leadership, comes at a ‘critical time’, the UN said, with 2024 marking the first year that the Paris Agreement 1.5°C threshold was passed. It also coincides with the 25th anniversary of the UN Global Compact.
With a $4.3 trillion annual SDG financing gap leaving more than three billion people in countries spending more on interest than on health or education, the UN is calling on the private sector to close the ‘execution gap’.
This involves “embedding sustainability into strategy and culture, scaling innovation across value chains, and partnering to shape rules that reward long-term business value,” Ojiambo added. “Companies that act on these findings will build resilience, unlock growth, grow industries, stimulate economies and accelerate delivery of the Sustainable Development Goals.”
The report outlines five areas for advancing sustainability at scale: collaborate on regulation; harness consumer demand; expand access to technology; upskill for the future; and lead with credibility and purpose.
It found that CEOs are already preparing themselves for what is likely to be a ‘more regulated’ future, with 92% saying strong global governance and unified policy are important or critical; 95% reporting that regulatory compliance is a leading organisational priority; and 84% believing that their companies are ready to meet upcoming sustainability regulations.
In addition, some 98% believe that the private sector can drive progress through sustainable products and services, while 96% of CEOs are advising their successors to embed sustainability in the company vision and culture.
‘From ambition to execution’
“Business leaders know that technology, data and AI are critical to meeting their sustainability targets, yet gaps persist as they move from ambition to execution,” added Stephanie Jamison, global resources industry practice chair and global sustainability services lead at Accenture.
“Across industries and geographies, our clients are eager to move away from isolated projects toward adopting a multigenerational approach that compounds learnings, accelerates delivery and reduces cost. This can be a blueprint for growth that pairs sustainability commitments with bold, AI-driven reinvention that is built-in, not bolted on.”
The report was compiled through a quantitative assessment of nearly 2,000 CEOs and in-depth one-to-one interviews with CEOs, chairpersons and presidents of UN Global Compact member companies. Read more here.
