Insights from the 2022 Sustainability Leaders Survey: The Current State and Future of Sustainable Business Leadership

As the world continues to grapple with climate change, social inequality, and other pressing sustainability issues, businesses and other organizations are increasingly being called upon to take a leadership role in addressing these challenges. To better understand the current state and future of sustainable business leadership, GlobeScan and The SustainAbility Institute by ERM conducted their annual Sustainability Leaders Survey in 2022. The survey is based on responses from sustainability experts around the world and provides valuable insights into the key issues, trends, and challenges that organizations are facing as they seek to become more sustainable. In this article, we will analyze the key findings of the survey and discuss their implications for businesses and other organizations.

Urgency of Climate Change

One of the most striking findings of the 2022 Sustainability Leaders Survey is the growing urgency around climate change. Compared to last year, sustainability experts are now almost unanimous in their belief that climate change is urgent. This increased urgency is likely driven by the continued rise in global temperatures, as well as the growing frequency and severity of extreme weather events around the world. It is clear that businesses and other organizations must take action to address climate change and reduce their carbon footprint, or risk being left behind by consumers, investors, and other stakeholders who are increasingly demanding sustainable solutions.

Role of National Governments, the Private Sector, and Multi-Sectoral Partnerships

The 2022 Sustainability Leaders Survey also highlights the continued importance of national governments, the private sector, and multi-sectoral partnerships in driving sustainable development. These three institutional groups are overwhelmingly expected to demonstrate leadership on sustainable development, with the same top three being mentioned as when this question was last asked in 2016. This suggests that collaborative approaches that bring together diverse stakeholders will be essential to achieving meaningful progress on sustainability issues.

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NGO Leadership

The World Wildlife Fund (WWF) continues to dominate in recognition for sustainability leadership among NGOs, followed by Greenpeace and the World Resources Institute. Collaboration and innovation are the main characteristics perceived to be driving NGO leadership in sustainable development. Experts continue to view stakeholder engagement as the main driver for NGO leadership. Innovation and knowledge, as well as the reach and scale of initiatives, are also observed by experts to be consistent indicators of NGO leadership in sustainability over time.

Corporate Sustainability Leaders

Unilever and Patagonia continue to top the list of sustainability leaders, while Microsoft makes the top five for the first time. The top 11 companies are similar to those recognized in 2021, including Unilever, Patagonia, Natura & Co, IKEA, Microsoft, Interface, Ørsted, Tesla, Danone, Google, and Nestlé. Recognized leadership is increasingly driven by action and impact. Companies are considered to be leaders when they put sustainability at the core of their business models and strategies and focus on tangible impact.

Regional Corporate Sustainability Leaders

There is greater diversity among the companies cited as regional corporate sustainability leaders. While the list of globally recognized sustainability leaders is relatively static year over year, different names emerge when experts are asked to identify sustainability leaders among companies headquartered in their own regions. Experts in Africa / Middle East highlight Nedbank, Safaricom, and Woolworths, while those in Asia-Pacific point to Tata. Europe is dominated by Unilever and IKEA, while experts in Latin America / Caribbean most mention Natura &Co, and North American experts favor Patagonia and Microsoft.

Sectors Performing Poorly on Transitioning to Sustainability:

Almost all sectors are viewed by experts as performing poorly on transitioning to sustainability. Technology- and science-based sectors are viewed most positively on managing their transition to sustainable development within the respective experts’ region or country. All other sectors are much more likely to be rated negatively than positively on sustainability transition, especially the extractive sectors. Banking / finance, electric utilities, and automotive companies are seen to be transitioning to sustainability better than they were six years ago when this question was last asked. However, there is still a long way to go in terms of achieving sustainable practices in these sectors.

The fact that technology- and science-based sectors are viewed most positively on managing their transition to sustainability is not surprising. These sectors have been at the forefront of innovation and have been able to leverage technology to drive sustainability. For example, the development of renewable energy sources such as solar and wind power has been made possible by technological advancements in the energy sector.

However, it is concerning that almost all other sectors are viewed negatively in terms of their sustainability transition. This includes industries such as agriculture, mining, and manufacturing. These sectors are known for their high levels of resource consumption, emissions, and waste, making it difficult for them to transition to sustainable practices.

The extractive sectors, in particular, are often criticized for their impact on the environment and local communities. These industries, which include oil and gas, mining, and forestry, are associated with deforestation, water pollution, and greenhouse gas emissions. The lack of progress in these sectors is a major obstacle to achieving global sustainability goals.

On a more positive note, the banking/finance, electric utilities, and automotive sectors are making progress in transitioning to sustainability. This is likely due to a combination of factors, including increased consumer demand for sustainable products and services, government regulations, and corporate sustainability commitments.

The banking and finance sector has made strides in promoting sustainable investment and financing, with many institutions setting targets to reduce their carbon footprint and invest in renewable energy. Electric utilities are also making significant progress, with many companies transitioning to renewable energy sources and investing in grid modernization. Similarly, automotive companies are developing electric and hybrid vehicles and exploring alternative fuel sources.

While there is still much work to be done, the fact that these sectors are making progress is a positive sign. It highlights the importance of collective action in driving sustainability, with governments, businesses, and consumers all playing a role in promoting sustainable practices. It is also a reminder that sustainability is not just an environmental issue, but an economic and social issue as well, and that businesses must embrace sustainability as a core value if they are to succeed in the long term.