Two thirds of CEOs view sustainability as a leading business growth opportunity in 2024, according to a survey of chief and senior executives by Gartner.
► Sustainability is consistently listed as a top-ten priority
► Technology can play a key role in driving outcomes
According to the firm’s annual survey, the leading ways CEOs are using sustainability to drive business growth are through sustainable products and services (33%); sustainable business practices (18%); stakeholder engagement (18%); and decarbonisation (18%). Digital investment and innovation is ranked ninth at 8%.
As organisations reset their long-term strategies, environmental sustainability remains one of the leading factors that will frame competition, said Kristin Moyer, distinguished VP analyst at the firm. “Despite much corporate greenwash, recent economic conditions could have triggered a reversion to environmental, social and governance (ESG) cynicism and a refocus on profit at all costs. However, the overall commitment of CEOs appears to be unwavering.
‘Sustainability consistently remains a top ten business priority, surpassing even productivity and efficiency this year’, said Moyer. ‘Leaders and investors know environmentally cavalier corporate behaviour is a mid- to long-term risk to business results, with a big price to be paid when environmental factors are ignored as externalities. However, smart CEOs realise big sustainability challenges create new areas of business opportunity.’
According to Gartner, digital technology can play an important role in driving sustainability outcomes. For example, the Internet of Things (IoT), data and analytics can optimise wind turbines, which reduces costs and greenhouse gas emissions. AI and IoT can reduce food loss costs and waste; whereas a circular economy marketplace can create new revenue and reduce waste.
‘Digital technology can accelerate progress toward sustainability goals, going beyond compliance to help enterprises reach targets, enable new business models and unleash revenue streams’, said Moyer.
The survey also revealed that over half (51%) of organisations expect changing weather patterns to impact the way they operate. Technology is likely to play a vital role here, especially when it comes to the supply chain. Changes are anticipated to the area of operating dynamics (30%) – including logistics, warehousing, timing and routing of deliveries; relocations (including nearshoring) (14%); and automation, technology and data (13%).
The 2024 Gartner CEO and Senior Business Executive Survey was conducted from July to December 2023 among over 400 CEOs and other senior business executives in North America, Europe, Asia/Pacific, Latin America, the Middle East and South Africa, across different industries, revenue and company sizes.
