How to square the circle on sustainability

Sustainability has become a fundamental prerequisite for doing business. Companies’ operations and business models depend on environmental and social inputs such as capital, natural resources, production equipment, and relations with the outside world. This includes a range of stakeholders, from legislators and investors to customers and employees.  

This means that sustainability is no longer just about compliance and ethics but rather should be a core part of business strategy. Placing it there will demand new competencies and skills from a company’s top leadership, and the board of directors in particular.  

Unfortunately, however, for most companies sustainability is still not fully integrated in this way. Consultancy PwC’s 2021 CEO survey showed that 60% of those interviewed had not yet made climate change part of strategic risk management. Instead, companies more generally seem to have sustainability or ESG processes that are designed to handle compliance,…