Earlier this year, Dattner Group published a research report aimed at advancing the impact, visibility and leadership capabilities of those driving sustainability outcomes in organisations. Titled “Unearthed Potential”, the report underscores the imperative for organisations to collectively understand the capabilities required to bring sustainability goals to all leadership and business performance discussions, in the face of escalating global crises. Drawing on insights from a broad range of sectors and professionals across Australia and New Zealand, the research sheds light on the roles, challenges, and aspirations of sustainability leaders.
Not long after, Gartner released details on their most recent survey into CEO’s top priorities for 2024. The Gartner research reveals a complex picture of CEO attitudes towards sustainability. As reported in the LA Times, While 69% of CEOs view sustainability as a leading business growth opportunity in 2024, it’s noteworthy that environmental sustainability sits at 7th place on their list of priorities, declining as a priority by 15 points since the previous survey. This shift suggests a potential disconnect between recognising sustainability’s importance and prioritising it in practice.
This trend aligns with key findings from the “Unearthed Potential” report, which highlights significant challenges faced by sustainability leaders in organisations. Dattner Group’s research identifies a fundamental lack of value and understanding around sustainability, especially from senior leaders, as a major obstacle. This accords with what can be seen in the Gartner data, which would seem to indicate that while CEOs acknowledge sustainability’s potential, it may not be receiving the urgency or resources needed for effective implementation.
The “Unearthed Potential” research emphasises the critical need for sustainability to be embedded in organisational culture and led from the top down. However, the experiences of sustainability leaders often reflect being undermined, ignored, or merely paid lip service by senior leadership. This apparent gap between CEO perceptions and on-the-ground realities underscores the importance of developing better influencing strategies for sustainability leaders when engaging with the C-Suite.
Interestingly, the Gartner survey shows that CEOs recognise the impact of climate change on their businesses, with 54% reporting effects from changing weather patterns. This awareness, which will no doubt increase over the next 2-5 years, is an opportunity for sustainability leaders to leverage when advocating for more substantial organisational commitments. Dattner Group’s research – along with many years of working with leaders across all facets of an organisation – suggests that sustainability leaders need to enhance their skills in political and social influence to effectively communicate the value of sustainability initiatives to decision-makers.
Both pieces of research highlight the importance of integrating sustainability into core business strategies. CEOs are clearly exploring sustainable products and services, business practices, and decarbonisation as pathways to growth. However, sustainability is often not effectively linked to overall business strategy, suffering from poor integration or lack of accountability.
When Dattner Group conducted its research via personal interviews with sustainability experts leading across a broad range of organisations, what emerged most strongly was the need for improved leadership capabilities among sustainability professionals. This aligns with the Gartner findings, which suggest that CEOs are looking for ways to drive business growth through sustainability. Enhancing the leadership skills of sustainability professionals could bridge the gap between CEO recognition of sustainability’s importance and its actual prioritisation, and potential for much wanted growth, within organisations.
While CEOs increasingly recognise the importance of sustainability, there remains a significant need for better integration of sustainability into core business strategies and improved communication between sustainability leaders and the C-Suite. Enhancing the leadership and influencing capabilities of sustainability professionals could be crucial in elevating the priority of sustainability initiatives and ensuring they receive the necessary resources and support from top management.
Download the full report: “Unearthed Potential: Considerations for successful sustainability leadership” .
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