The following are a few points from a new United Nations Global Compact-Accenture study on CEOs. At the bottom is how this will effect you.
- 98% of CEOs believe it is their role to make their company sustainable (up from 83% in 2013)
- 75% of CEOs are launching sustainable products/services
- 72% of CEOs believe they are personally accountable for their company’s sustainability performance (up from 19% in 2013)
- 68% of CEOs say their customers are demanding they become sustainable – “Competition used to be based on cost of performance. Now a key attribute consumers are looking for is sustainability”
- 56% of CEOs are introducing new sustainability models
- 55% are lowering greenhouse gas emissions (this will impact you, as a vendor)
- 52% of CEOs believe government regulations are influencing their sustainability decisions (up from 31% last year)
- 34% are already reducing their Scope 3 emissions (this means you, as a vendor)
- 33% are already conducting value-chain assessments (this means you, as a vendor)
- 33% are already incentivizing ESG outcomes for their value chain (this means you, as a vendor)
- “Sustainability is the most significant business imperative of our time”
- “A sustainable business is a profitable business”
- “Sustainability is no longer a cost of doing business; it is a catalyst for innovation, growth, new market opportunity and wealth creation”
- “For the last 3 years, 60-70% of my conversations with shareholders pertain to ESG”
- “Valuation is no longer based just on earnings or growth anymore. The other big part of the valuation is based on sustainability, leadership, culture and the values you represent”
What does this mean for you?
- CEOs are now driving the transition to sustainability, so all departments will have sustainability as part of their goals/objectives
- Expect Scope 3 emission reduction demands to jump dramatically (ie, expect a call from your client)
- Expect value-chain reviews to jump dramatically (ie, expect a call from your client)
- Expect Procurement offices to more aggressively replace vendors with sustainable options (ie, expect a call from your client)