How CEO Commitment Affects Sustainability Integration

Overall, there is a strong commitment to sustainability and a sense that progress is being made, but there is notable variance across industry and country.

Organizations need an increased prioritization of sustainability strategy, and this prioritization often starts at the top. CEO commitment to sustainability is key to the success of an organization’s overall sustainability goals. Russell Reynolds Associates’ Global Leadership Monitor delves into how committed CEOs are to sustainability, with a global sample of 1,590 executives from different geographic markets, industries, and company sizes to explore how top leaders can excel at sustainability integration.

In this three-article series ‘Commitment to Sustainability’, we delve into research from the Russell Reynolds Associates’ 2021-2022 Global Leadership Monitor and 2021 Divides and Dividends to help organizations in different geographic regions and industries build and maintain effective sustainability strategies for the future.

Ultimately, executives need to fully grasp three key areas when setting sustainability goals and metrics. Read on below to learn how CEO commitment affects sustainability integration, or navigate to our other articles in the series.

1. How CEO commitment affects sustainability integration
   
   
2. Framing sustainability through a value creation lens
   
   
3. Holding executives accountable: tying financial metrics to sustainability outcomes

How CEO Commitment Affects Sustainability Integration

While some organizations may have a chief sustainability officer, for many organizations, the sustainability strategy still falls under the responsibilities and purview of the CEO. As the CEO is the face of the organization for many facets of organizational strategy, it is important that they are overtly committed to embedding sustainability into their overall organizational strategy.

As companies move away from simple PR statements around sustainability commitment, many of which are designed with brand and image management in mind, and more towards a value creation approach, CEOs should be at the forefront of communicating the organization’s sustainability goals to internal and external stakeholders.

This communication is an important first step, as organizations with CEOs who are publicly committed to sustainability tend to feel more prepared to address external factors impacting the future health of their organization than those with CEOs who have not voiced public commitment to sustainability. Most particularly, organizational preparedness toward sustainability in terms of climate change and environmental damage, trade conflicts, and investor activism.

Global view: How committed are CEOs to sustainability?

Executives generally feel their CEO is personally committed to advancing sustainability and that progress is being made, with just 10% of overall global leaders feeling their CEO has no commitment to sustainability. CEO commitment is viewed in relatively high terms globally, but there is some variability between role levels.

_{Source: Russell Reynolds Associates’ 2022 Global Leadership Monitor Survey, n = 1,590 global executives.}

Regional view: CEO commitment highest among China/Hong Kong and UK

CEO commitment to sustainability is markedly high across all regions. Most notably, more than 9 in 10 executives in China and Hong Kong believe their CEO is committed to advancing sustainability within their organization.

Has your CEO personally committed to advancing sustainability in your organization?
By Country

Industry view: Industrial and natural resources industry demonstrates high commitment towards sustainability advancement

While more than three quarters of leaders globally believe their CEOs are personally committed to sustainability, there are important differences in commitment levels across industries. While 93% of leaders in the industrial/natural resources (INR) industry say their CEO is committed, only 65% of leaders in professional services and 63% in healthcare say the same.

Has your CEO personally committed to advancing sustainability in your organization?
By Industry

Turning these insights into action

Authors

Beth Hawley is a member of Russell Reynolds Associates’ Center for Leadership Insight. She is based in Chicago.
Tom Handcock leads Russell Reynolds Associates’ Center for Leadership Insight. He is based in London.
Gabrielle Lieberman is a member of Russell Reynolds Associates’ Center for Leadership Insight. She is based in Chicago.

Acknowledgments

Francesco Menonna is a member of Russell Reynolds Associates’ industrial/natural resources team. He is based in New York.