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Practical pathways to transformational sustainability

Assignment by Neha Pareek (148) and Rushikesh Patil (119)

Sustainability is a concern for businesses and a problem.

What this chapter is about

1. Pressure builds With CEOs feeling increased pressure to act, sustainability is now ranked as

their greatest organizational challenge.

2. What do you expect will be the greatest challenges for your organization over the next 2-3

years.

3. Certainly, consumers and employees are taking a stand.

What you can learn

1. Operational CEOs view sustainability investments as an opportunity to optimize their

businesses by driving efficiencies and operational improvements.

2. Transformational CEOs see sustainability as a catalyst for fundamental change and work across the C-
suite and with ecosystem partners to reshape the enterprise.

3. Find your essential," focused on identifying an organization's essential different ator-the one

thing that makes it indispensable to its stakeholders. From that perspective.

Summary

1.Growing sustainability is one of the top goals for their company in the next two to three

years, according to over half of CEOs, up from around a third in 2021, a 37% rise in just one

year.

2.Technological factors remain in the top spot for the third year in a row, while regulatory

concerns, which likely include changing sustainability requirements, take the #2 spot.

3.Different sectors confront various opportunities and problems.


4.For the third year in a row, technological issues continue to hold the top rank, while

regulatory concerns—which probably include shifting sustainability requirements—take second

place.

5.Financial services company Bancolombia's CEO, Juan Carlos Mora Uribe, notes that not many

nations and companies paid attention in 2015 when the UN unveiled its goals for sustainable

development.

6.More than 80% of CEOs say sustainability investments will drive better business results in the

next 5 years.

7.Organizations with Assessing and Complying CEOs, on the other hand, need a course

correction, as their current roadmaps could lead to a dead end.

8. Despite their firm conviction, continued investments, and eagerness to seize opportunities,

CEOs are encountering significant obstacles. 57% of CEOs identify difficulty clearly defining and

measuring ROI and economic benefits as one of the greatest challenges to achieving

sustainability objectives.

9. Operational CEOs view sustainability investments as an opportunity to optimize their

businesses by driving efficiencies and operational improvements.

10. Transformational CEOs see sustainability as a catalyst for fundamental change and work

across the C-suite and with ecosystem partners to reshape the enterprise.

The road to sustainability: from evaluating to changing.

What this chapter is about

1. Their differences in viewpoints and intent related to sustainability impact how they handle

stakeholder engagement and governance, as well as how they leverage technology.

2. Assessing CEOs Organizations with Assessing CEOs have not yet made any investments in

sustainability.

3. While some are exploring options, others have no plans at all. These CEOs consider

sustainability a challenge-but not a personal responsibility-and their involvement in


sustainability initiatives is limited.

What you can learn

1. 53% say that achieving sustainability targets requires recalibrating how they measure and

report performance.

2. 51% expect their sustainability investments to accelerate business growth.

3. Optimism among Transformational CEOs signals confidence in their strategy.

Summary

1. CEOs are aware that attaining environmental targets is difficult. But some people are able to

make significant advancements.

2. The 4 CEO archetypes differ in other significant ways in addition to having diverse strategic

approaches to sustainability initiatives.

3. Transformational CEO-led organisations outperform their rivals in terms of sustainability

strategy formulation, implementation, and results, and they are confident in their potential to

succeed in the future.

4. Organizations led by Transformational CEOs are far ahead of their peers in sustainability

strategy development, implementation, and outcomes, and they’re optimistic about future

success. With a sense of conviction and responsibility, these leaders approach sustainability as an
opportunity.

5. The fashion industry is notorious for wasteful practices, including unsold inventory that ends up in
landfills.

6. The Transformational CEOs’ commitment to sustainability lends itself to outperformance:

Their organizations achieve better sustainability outcomes and better business performance,

with higher average operating margins and EBITDA—even amid disruptive market dynamics.

7. Transformational CEOs recognize that disruption requires new ways of doing things,

specifically performance measures. 53% say that achieving sustainability targets requires

recalibrating how they measure and report performance. 51% expect their sustainability
investments to accelerate business growth.

The transformational edge: Leadership, open innovation, and technology

Summary

1. Cultivating the right team. As Transformational CEOs embed sustainability throughout their

organization, they involve a broader and deeper set of senior executives than their

counterparts. Transformational CEOs are not just driving sustainability from the top down, but

also taking tangible steps to bring along their entire workforce.

2. Ecosystem partnerships are another area where we see significant differentiation among

sustainability CEO archetypes.

3. Iberdrola is a leading global energy supplier–the third largest in the world by market

capitalization–and a leader in renewables.

4. Critical to powering innovation and improvements in productivity, efficiency, and cost, digital

technologies are essential to realizing the full potential of sustainability initiatives.

Action guide.

Summary

Be proactive in the pursuit of sustainability.

Invest in open and interoperable technologies that enable you to employ data software and

innovation at scale and speed across your enterprise.

Attract and retain purpose-driven people with the skills and domain expertise to execute.

Reinforce sustainability throughout the enterprise.

Finalize a sustainability strategy for your entire organization, clarifying how and where you

intend to pursue operational versus transformational sustainability.

Engage enterprise transformation and technology leaders in your enterprise and work across

the C-suite for greater impact.

Grow the coalition of organizational leaders engaged in and accountable for the success of

sustainability initiatives.
Commit to supporting sustainability personally.

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