CEOs Interests in Sustainability
The Wall Street Journal article, “CEOs Increasingly See Sustainability as Path to Profitability,” discusses environmental interests of CEOs. Most of whom want to boost the success of their companies in the future.
Previously, CEOs believed that success would come from supporting social justice and equality. However, in today’s climate it is much more than that. CEOs have begun to notice that the synergy of a company’s environmental, social, and governance practices can boost success too.
An accounting and consulting firm, PricewaterhouseCooper, LLC conducted a survey of more than 1,500 global CEOs. The survey returned some interesting data. Data showed a quarter of CEOs currently believe investing in climate-change initiatives will increase opportunities for their businesses. This will allow them to to create new products and services.
Why these interests may raise concerns
Although many businesses are beginning to take interest in environmental issues, there is still skepticism. While businesses are displaying their interest in such issues, the executives lack experience when it comes to sustainability. According to Clarke Murphy, CEO of Russell Reynolds , Associates , “Businesses are doing a great job embedding talk of sustainability into descriptions about their company, but are falling short in driving decisions about which leaders to hire based on it.” Murphy acknowledges that many executives are not qualified when it comes to sustainability. However, he believes that this will change in upcoming years.
It is important for businesses to invest in climate-change initiatives. However, there may be concerns regarding CEOs intentions to do so. As described in the article, CEOs are becoming more interested in sustainability practices to boost their success. In other words, they see potential profitability from investing in sustainability initiatives. This may be concerning to consumers considering they may view the actions of business as money driven. Another concern may be that businesses are talking about their sustainability interests. Their actions and practices are not showing their efforts to better the environment, though.
Beyond profitability, do it for the planet
As environmental issues continue to become a large-scale issue across the globe, businesses will face the reality of climate-change. Not only should businesses invest in sustainability practices for the success of their businesses, but also for the conservation of Earth.
For a list of the world’s most sustainably managed companies, click here: