- CEOs are embracing innovative strategies, digital technologies, and stakeholder engagement to capitalize on the opportunities presented by environmental challenges.
- By aligning business objectives with sustainable practices, organizations can not only future-proof their operations but also create a positive impact on the environment and society at large.
In today’s rapidly changing business landscape, the concept of sustainability has emerged as a key driver of growth and competitive advantage.
According to a recent survey conducted by Gartner, Inc., sixty-nine per cent of CEOs view sustainability as a leading business growth opportunity in 2024. The findings of the survey shed light on the increasing importance of environmental sustainability as a strategic focus area for businesses across various industries.
Key strategies
Kristin Moyer, Distinguished VP Analyst at Gartner, emphasized the significant role that environmental sustainability plays in shaping competition as CEOs realign their long-term strategies.
Despite the prevalence of corporate “greenwash,” Moyer highlighted the unwavering commitment of CEOs towards sustainability, recognising it as a top 10 business priority that surpasses even productivity and efficiency in importance.
The survey revealed that sustainable practices such as the development of sustainable products and services, adoption of sustainable business practices, stakeholder engagement, and decarbonisation are key strategies employed by CEOs to drive business growth.
“Digital technology can accelerate progress toward sustainability goals, going beyond compliance to help enterprises reach targets, enable new business models and unleash revenue streams,” Moyer said.
Digital technology has emerged as a critical enabler of sustainability initiatives, with IoT, data analytics, AI, and innovation playing pivotal roles in helping enterprises achieves their sustainability goals.
For instance, IoT and analytics can optimize processes such as wind turbine operations, leading to cost reductions and lower greenhouse gas emissions. The adoption of digital technologies not only aids in compliance but also opens up new business models and revenue streams for companies.
Changing weather patterns
Changing weather patterns have been identified as a significant factor affecting businesses, with over half of CEOs acknowledging its impact on their operations.
The Gartner survey revealed 54 per cent of CEOs say their businesses are affected by changing weather patterns, at least moderately. Over half (51 per cent) acknowledge changing weather patterns are causing them to plan changes to the way they operate or have already done so.
Moyer said that CEOs see that climate change is causing weather pattern shifts that are directly impacting their business operations already.
“Those operations must be adapted, with technology playing a vital role in driving these changes, especially in the dynamics of supply chains.”
Key areas of impact include operating dynamics, logistics, relocations, and the adoption of automation and technology to navigate the challenges posed by changing weather patterns.