69% of chief executive officers polled by analyst firm Gartner say they view sustainability as a leading business growth opportunity – in spite of economic conditions potentially triggering a reversion to ESG.
The company polled more than 400 CEOs and senior business executives globally in the second half of 2023, and explored the various ways in which leaders are using sustainability to drive business growth.
One in three polled – 33% putting it as either their first or second choice – say they are creating sustainable products and services, the most popular choice by a distance. Sustainable business practices, stakeholder engagement, and decarbonisation all polled 18%. Conversely, only 2% of respondents said they looked to achieve sustainable business growth through M&A and divestiture.
Similarly, only 8% of those surveyed said they look to digital investments and innovation, with less than half of that number putting it as their first choice.
Regular readers of Sustainability News will be aware of the various digital technologies enabling sustainability, from AI to IoT (Internet of Things), and Gartner notes similarly. The company cites how data analytics and IoT can optimise wind turbines, reducing costs and greenhouse gas emissions, while AI and IoT can reduce food loss costs and waste.
Technology also plays a ‘vital’ role in the future supply chain, Gartner noted, particularly with climate disruption. More than half (54%) of respondents said their businesses were already affected by changing weather patterns to at least a moderate degree.
“CEOs see that climate change is causing weather pattern shifts that are directly impacting their business operations already,” said Kristin Moyer, distinguished VP analyst at Gartner. “Those operations must be adapted, with technology playing a vital role in driving these changes, especially in the dynamics of supply chains.”
This is by no means a singular trend. Last month, 85% of 300 companies polled by Morgan Stanley said they saw sustainability initiatives, at least in part, as a value creation opportunity, as opposed to a risk management play.
Moyer added that, as CEOs reset their long-term strategies, their overall commitment towards sustainability ‘appears unwavering.’
Photo by micheile henderson on Unsplash
