At the end of March, I had the opportunity to take part in a challenge hosted by a multiple World Champion Extreme Long Range (ELR) shooter and YouTuber. The concept of being on target was certainly important in preparing for that event, just as it is in my regular range days. It also applies to ESG/sustainability professionals in our daily work, especially since defining what the target is can be its own challenge. The results of PwC’s 27th Annual Global CEO Survey and 2023 Global Investor Survey highlight what I mean. Take a look at this summary of results on perceptions of chief executives and investors on external threats to business.
This demonstrates different views on business risk topics between CEOs and investors, that directly impacts how in-house staff and external advisors approach ESG, climate and sustainability. Those folks have been falling over themselves to respond to pressure (and actions) from investors, thinking that executives are aligned in the level of concern about those matters over the needs of their own company. The graph shows they very well may be aiming at the wrong target, risking their reputation with executives – along with funding, collaboration opportunities and being truly aligned with business strategy. Echoes of “sustainability” from the 1990s…
What should you do? Ask your executives if they agree your efforts and priorities are aligned with the company, or are they more focused on investor concerns that differ from the company’s? This cuts both ways – executives might need a push to reconsider their position on certain matters, while CSOs/staff may need to somewhat redirect their activities away from an investor emphasis. Once you have clarity or confirmation on what the target should be, it is much easier to “keep it on paper” as shooters say.
The rest of the PwC report is good reading as well – addressing topics like decarbonization, hurdle rates for climate investments, resource reallocation and (of course) AI.
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