THE DECADE TO DELIVER - A CALL TO BUSINESS ACTION The United Nations Global Compact -Accenture Strategy CEO Study on Sustainability 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE DECADE TO DELIVER A CALL TO BUSINESS ACTION The United Nations Global Compact —Accenture Strategy CEO Study on Sustainability 2019
United Nations Global Compact – Accenture Strategy
CEO STUDY ON
SUSTAINABILITY
2019
“We have to mobilize the
THE DECADE TO DELIVER
private sector, it is 75% of the
In the world’s most comprehensive CEO Study to date
global GDP. Moving forward, on the business contribution to the UN Sustainable
Development Goals (also known as the Global Goals)
collaboration with business - conducted by the United Nations Global Compact and
Accenture Strategy, more than 1,000 top executives
and the key CEOs in the world across 21 industries and 99 countries candidly reflect
on the opportunities and challenges to sustainability
- is crucial when it comes to since the launch of the Global Goals.
fighting climate change; but At the same time as they acknowledge the opportunity for
competitive advantage through leading on environmental,
also, to meet sustainable
social and governance issues and report real progress,
impressive innovation and impact; they recognize the
business community could and should be making a far
development goals, eradicate greater contribution to achieving a sustainable global
economy and society by 2030. They also point to the
all extreme poverty by 2030, barriers that are preventing business from doing more and
the enablers that would unlock the potential of the private
and we’re not on track on this.” sector.
Not content with the status quo, these CEOs from across
industries, geographies and companies large and small
H.E. António Guterres, are sending a clear and unequivocal call to their sectors
Secretary-General, and peers to step up action and change market systems
to drive a decade of delivery on the Global Goals.
United Nations
September 2019
UN GLOBAL COMPACT CEO STUDY 2019 | 3
ABOUT THE UNITED NATIONS GLOBAL COMPACT CONTENTS
As a special initiative of the UN Secretary-General, the United
Nations Global Compact is a call to companies everywhere to align
their operations and strategies with ten universal principles in the
areas of human rights, labour, environment and anti-corruption.
Launched in 2000, the mandate of the UN Global Compact is to
guide and support the global business community in advancing UN INTRODUCTION 07
goals and values through responsible corporate practices. With
more than 9,500 companies and 3,000 non-business signatories
based in over 160 countries, and more than 60 Local Networks, STUDY PARTICIPANTS 08
it is the largest corporate sustainability initiative in the world.
For more information, follow @globalcompact on social media
and visit our website at unglobalcompact.org. EXECUTIVE SUMMARY 14
ABOUT ACCENTURE STRATEGY REALITY CHECK 20
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy, Business contribution to the Global Goals is not enough
consulting, digital, technology and operations. Combining Special Focus: Fourth Industrial Revolution
unmatched experience and specialized skills across more than (4IR) Technologies and the Global Goals
40 industries and all business functions—underpinned by the
world’s largest delivery network—Accenture Strategy works
at the intersection of business and technology to help clients BEYOND INCREMENTALISM 34
shape the future of their organisations and create sustainable
value for their stakeholders. With more than 482,000 people
A call for greater action from business
serving clients in more than 120 countries, Accenture drives
and real systems change
innovation to improve the way the world works and lives.
Special Focus: CEOs on Gender Equality and Climate Action
ABOUT THE CEO STUDY PROGRAM
CALL TO ACTION 1 45
The CEO Study program is an effort to enhance understanding
and commitment between the United Nations and the private Raising ‘threshold’ ambition and leading
sector. The program is an extensive review of the advancing
systems transformation
corporate sustainability movement, and the publications
coalesce dominant views of CEOs, business leaders and UN Special Focus: CEOs on transforming the food system
executives to track developments in sustainability. Accenture
and the UN Global Compact have established a solid and
successful collaboration for this program, with the following CALL TO ACTION 2 63
CEO Study publications to date:
Collaborating to shape realistic, science-based solutions
2010: A New Era of Sustainability
Special Focus: Responsible leadership performance analysis
2013: Architects of a Better World
2015: Special Edition: A Call to Climate Action
CALL TO ACTION 3 73
2016: A Window of Opportunity
2018: Special Edition: Transforming Partnerships for the SDGs Defining responsible leadership for 2030
ACKNOWLEDGMENTS 82
4
INTRODUCTION
This year marks the fifth triennial United Nations Global than 1,000 CEOs through an online survey that was
Compact – Accenture Strategy CEO Study, which in 2019 translated in 9 languages. In parallel, we further deduced
is a joint publication with the UN Global Compact 2019 insights from more than 1,500 business executives
Progress Report. As the latest milestone in over a decade of through the annual implementation survey. Second, we
research, the 2019 CEO Study draws on insights from 1,000 conducted more than 100 in-depth one-to-one interviews
CEOs across 21 industries and 99 countries, reflecting over with CEOs, chairpersons and presidents of UN Global
100 in-depth interviews, and a further 1,500-plus senior Compact companies around the world to understand the
business leaders who responded to the UN Global Compact wider strategic context - from geopolitics to investment
implementation survey. in technologies to challenges and opportunities on
sustainability - for business.
As we approach 2030 and with ten years to achieve the
Global Goals set out by governments with business and other In compiling this CEO Study, we are once again indebted to
stakeholders, it is clear that we are not on track. At the same the UN Global Compact study leads Dan Thomas and Sean
time, business leaders told us that they face an ever more Cruse. We also recognize the leadership of the Accenture
competitive and challenging business environment and set team, in particular, study leads Jessica Long and Jenna
of pressures. From global trade uncertainties, to activist Trescott, lead author Apurv Gupta, as well as Akshay
investors, to the pace and scale of the technology revolutions Raghunath. There have been many further contributions
taking place in digital, biological and physical innovation, the from colleagues too numerous to mention here, but without
intensity is unlikely to change in the decade ahead. whom our analysis would not be compelling – in particular,
Justin Keeble, Harry Morrison, Melissa Barrett, Mauricio
Against that backdrop, CEOs told us that they are making Bermudez, Alexander Holst, Guanghai Li and Sundeep Singh.
real progress, face growing expectations from consumers
and employees, and are able to point to concrete innovative On behalf of the United Nations Global Compact and
business models, partnerships and technologies that Accenture Strategy, we would like to express our sincere
show it is possible to both drive competitiveness and thanks to the CEOs and chairpersons, business leaders
real measurable progress on environment, social and and other stakeholders who participated in the study.
governance issues. The project team has endeavoured to understand and
interpret their many ideas, reflections and case study
But, in the most powerful self assessment yet seen globally examples in conducting the study and delivering
from CEOs on the business contribution, this year’s study this report.
finds that CEOs believe that business is not doing enough
and that in many cases their own companies and industries
are not stepping up. Those same CEOs gave an equally stark
call to action for business to step up or risk a lost decade
ahead for the Global Goals without the urgent and required
business contribution. In this report we share the feedback
from CEOs on both their assessment of the challenge but
also their suggestions for what needs to be done at all
levels to get us back on track.
Lise Kingo Peter Lacy
The CEO Study follows two principal strands of research. Executive Director and CEO Senior Managing Director
First, we conducted a quantitative assessment of more UN Global Compact Accenture Strategy
6 UN GLOBAL COMPACT CEO STUDY 2019 | 7
ONE-TO-ONE INTERVIEWS
We would like to thank the following CEOs, chairpersons and presidents for their insights in shaping this study.
While the views expressed do not necessarily represent the totality of opinions received from all contributors,
their participation and guidance have been critical.
Jean-Paul Agon, Chairman Clara Arpa, CEO, Arpa EMC Douglas M. Baker, Jr. Chairman Werner Baumann, Chairman Jens Birgersson, Anders Danielsson, President Patrick Decker, President and Johan Dennelind, President Joseph Dharmabrata, CEO, Gaurav Dhawan, Executive
and CEO, L’ORÉAL and CEO, Ecolab, Inc. of the Board of Management, President & CEO, and CEO, Skanska AB Chief Executive, Xylem and CEO, Telia Company PT Trans Javagas Pipeline Chairman, Phoenix Group
Bayer AG ROCKWOOL International A/S
Gizeshwork Tessema Bizachew, Dominic Blakemore, Group Chief Jean-François van Boxmeer, Sigve Brekke, President & Carlos Brito, CEO, Marc Doyle, Chief Executive Wiebe Draijer, Chairman of the Joaquin Duato, Vice Chairman Bob Dudley, CEO, BP Julie-May Ellingson, Chief
CEO, Gize PLC Executive, Compass Group PLC Chairman of the Executive CEO, Telenor Group Anheuser-Busch InBev Officer, DuPont Company Managing Board of Rabobank of the Executive Committee, Executive Officer, Cape Town
Board and CEO, HEINEKEN Johnson & Johnson International Convention Centre
Jesper Brodin, CEO, Ingka Group Martin Brudermüller, Chairman Guenter Butschek, CEO and Hans Van Bylen, CEO, Henkel Giovanni Caforio, M.D. Chairman João Paulo Ferreira, CEO, Jim Fitterling, Chief Laurent Freixe, Executive Antoine Frérot, Chairman & Gary Goldberg, Chief Executive
of the Board of Executive Directors, Managing Director, and Chief Executive Officer, Natura Executive Officer, Dow Vice President, Chief Executive Chief Executive Officer, Veolia Officer, Newmont Goldcorp
BASF SE and CTO Tata Motors Limited Bristol-Myers Squibb Officer, Zone Americas, Nestlé
Steve Cahillane, Chairman and Patrick Chalhoub, Brian Chambers, President & Emanuel Chirico, Chairman Michael Clarke, Chief Executive Giles Gunesekera, Magnus Hall, President and CEO, Yoshihiro Hidaka, President, CEO Christine Holgate, Group Chief Frans van Houten, CEO &
CEO, Kellogg Company Chief Executive Officer, Chief Executive Officer, and Chief Executive Officer, Officer, Treasury Wine Estates Chief Executive Officer, Vattenfall and Representative Director, Executive Officer & Managing Chairman, Royal Philips
Chalhoub Group Owens Corning PVH Corp. Global Impact Initiative Yamaha Motor Co., Ltd. Director, Australia Post
Bruce Cleaver, CEO, Iain Conn, Group Chief Executive, Mark J. Costa, Board Chair David Craig, CEO, Refinitiv Geoff Culbert, Chief Executive Mark Hunter, President and Peter Huntsman, Chairman, J. Jon Imaz, CEO, Repsol Sawsan Wazzan Jabri, Jean-Sebastien Jacques,
De Beers Group Centrica and CEO, Eastman Officer, Sydney Airport CEO, Molson Coors President and CEO, General Manger and Co-owner, Chief Executive, Rio Tinto
Huntsman Corporation Nutrition and Diet Center
8 UN GLOBAL COMPACT CEO STUDY 2019 | 9
Alan Jope, CEO, Unilever Lars Fruergaard Jørgensen, Ilham Kadri, CEO, Joe Kaeser, President and Meshvara (Mei) Kanjaya, Chief Marco Tronchetti Provera, James Quincey, Chairman and Noel Quinn, Group Chief Grant F. Reid, CEO and President, Alex Ricard, Chairman &
President and CEO, Novo Solvay Group Chief Executive Officer, Executive Officer, PT. Supra Executive Vice Chairman CEO, The Coca-Cola Company Executive, HSBC Holdings Mars, Incorporated Chief Executive Officer,
Nordisk A/S Siemens AG Boga Lestari Tbk. and CEO, Pirelli Pernod Ricard
Dave Lewis, Group Chief Mark Little, President & Susan Lloyd-Hurwitz, CEO Juan R. Luciano, Chairman of the Kristin Skogen Lund, CEO, Mark Rigotti, Chief Executive Chuck Robbins, Chairman Eric Rondolat, CEO and Simone Rossi, Chief Executive Michael Roth, Chairman
Executive, Tesco CEO, Suncor Energy & Managing Director, Mirvac Board of Directors, President & CEO, Schibsted Media Group Officer, Herbert Smith Freehills and Chief Executive Officer, Chairman of the Board of Officer, EDF Energy and Chief Executive Officer,
Archer Daniels Midland Company Cisco Management, Signify Interpublic Group
Denis Machuel, Chief Executive Jørn Madsen, Chief Executive Florence Sempebwa Makada, Kawthar Makahlah, Founder Stephen McCann, Group Chief Eldar Sætre, President Rolf Martin Schmitz, CEO, Robert Scott, Managing Director, Rob Shuter, Group President Feike Sijbesma, CEO,
Officer, Sodexo Officer, Maersk Drillling A/S Managing Director, Motorcare and CEO, BCI Group Executive Officer and Managing and Chief Executive RWE AG Wesfarmers Limited & CEO, MTN Group Royal DSM
Uganda Director, Lendlease Group Officer, Equinor
Florent Menegaux, CEO, Masaki Miyauchi, Chairman and Ian Moir, Group CEO, Frans Muller, President & Fernando Musa, CEO, Praveen Singhavi, President, Francesco Starace, CEO and Mark Steinert, Managing Fani Titi, Joint Chief Executive Jean-Pascal Tricoire, Chairman
Michelin CEO, Fuji Media Holdings, Inc. Woolworths Holdings Limited Chief Executive Officer, Royal Braskem SA. APRIL Group General Manager, Enel S.p.A. Director and Chief Executive Officer, Investec Group & Chief Executive Officer,
Ahold Delhaize Officer, Stockland Schneider Electric
T V Narendran, CEO & Managing Soraya Narfeldt, CEO, Peder Holk Nielsen, President Rosamaría Lázaro Ordaz, Peter Oswald, CEO, Mondi Group Julia Tsetis, CEO, Tsetis Group Mark Vergnano, President and Rachel Watson, Chief Executive Axel A. Weber, Chairman of Sandra Wu, Wen-Hsiu,
Director, Tata Steel Limited RA International and CEO, Novozymes CEO, Lazzar of Companies (Uni-pharma SA, CEO, The Chemours Company Officer, PHPL and Chief Operating the Board of Directors, UBS Chairperson and CEO,
Intermed SA, Pharmabelle Ltd) Officer, Corporate Office Group AG Kokusai Kogyo Co., Ltd.
Karl-Johan Persson, CEO, John Pettigrew, Chief Executive Goh Lin Piao, Managing Director, Patrick Pouyanné, Chairman Dave Powers, President and Mick Wilkes, President & CEO, Bill Winters, Group Chief Mohammed Mahomedy,
H&M Group Officer, National Grid plc APP Sinar Mas of the Board and CEO, Total CEO, Deckers Brands OceanaGold Corporation Executive, Standard Chartered Acting Group Chief Executive,
Transnet SOC Ltd
10 UN GLOBAL COMPACT CEO STUDY 2019 | 11
REALITY CHECK:
Business’ contribution to the Global Goals is not enough These CEOs are calling for their sectors and peers to step up impact and to course-correct
the private sector contribution to 2030’s targets, with three resounding calls to action:
This study is the fifth in a series IN 2016 IN 2019
conducted every three years that
dates back to 2007. In the 2016
study, CEOs told us the Global 49% said business would be the 48% are implementing sustainability CALL TO ACTION 1: CALL TO ACTION 3:
Goals would provide a clear most important actor in the delivery into their operations according to the
framework for their companies of the Global Goals UN Global Compact Progress Report Starting at home: raising ambition and impact Defining responsible leadership to pinpoint
to lead on the sustainable in their own companies and for their industries what is needed from this generation of leaders
development agenda. 78% saw opportunities to Only 21% feel business is currently
contribute to the Global Goals playing a critical role in contributing to Successful delivery of the 2030 Agenda requires CEOs point to nine emerging qualities of responsible
This year, the 2019 study finds through their core business the Global Goals engagement from all businesses to: leadership that will enable business to be a leading
that CEOs believe that business
execution is not measuring up to 90% said they were personally 71% of CEOs believe that – with
actor in driving the Global Goals
either the size of the challenge of committed to ensuring that their increased commitment and action
the Global Goals or their previous companies lead on the sustainable – business can play a critical role in Raise ambition through ‘threshold’
level of ambition. actions aligned with the 17 Global Goals
development agenda contributing to the Global Goals For their organizations and markets
Pioneer systems change
Drive sustainable market demand
Drive broader industry action by accelerating
Build cultures of responsibility
market and systems transformation
and sustainability
THE DECADE TO DELIVER
Within their ecosystems
CEOs call for bold action to accelerate the business contribution to the Global Goals Adopt new technologies to accelerate Know the issues and engage in
impact on the Global Goals science-based leadership
Extend responsibility to ecosystems
Economics constraints and business pressures are stalling corporate action and lift up industries
Engage in non-competitive collaboration
28% 43% 55% 63% CALL TO ACTION 2:
Changing how we collaborate with more honesty As individuals
cite “absence of market of the world’s largest say pressure to operate with say political uncertainty across about the challenges and real impact Take sustainability personally
pull” as a top barrier to companies cite competing extreme cost-consciousness markets is the most critical global Hold people to account and
implementing sustainable strategic priorities as a top against investing in longer-term issue for their companies’ competitive meaningfully engage investors
business barrier in implementing strategic objectives is a key strategies, and 42% say it is reducing To accelerate broader action and systems
sustainability trade-off that they are facing or stalling their sustainability efforts transformation, business leaders identify three Lead change with authenticity
areas for collective action:
Shaping realistic, science-based solutions:
CEOs say businesses should be making a far greater contribution key actors must come together in honest
to achieving a sustainable global economy and society by 2030 dialogue on the challenges and trade-offs
63% 78% 76% 88% Levelling the playing field: industry
leaders need to step up non-competitively
see Fourth Industrial Revolution of CEOs from both, Asian and North say citizen trust will believe our global economic in coordination and exchange
(4IR) technologies — digital, physical American businesses believe we be critical to business systems need to refocus
and biological — as a critical need to decouple economic growth competitiveness in their on equitable growth
accelerator of the socioeconomic from the use of natural resources industry in the next
impact of their companies and environmental degradation five years Driving local action: businesses have to
elevate the role of local partnership moving
between global and local implementation
EXECUTIVE SUMMARY
3. A new definition and emphasis on disruptive responsible to ensuring that their companies lead on the sustainable
leadership, as CEOs pinpoint what is needed from this development agenda.
generation of leaders to drive action and impact.
Achieving systems transformation and collaboration in line
with the ambition of 2030, can only be achieved with a new lens
CALL TO ACTION 1:
for responsible leadership, in which leaders drive disruptive change
REALITY CHECK: BEYOND INCREMENTALISM: RAISING ‘THRESHOLD’ AMBITION within and beyond the four walls of the firm and broader ecosystems.
BUSINESS CONTRIBUTION TO THE A CALL FOR GREATER ACTION FROM AND SYSTEMS TRANSFORMATION Across our conversations, we found that CEOs identify nine emerging
GLOBAL GOALS IS NOT ENOUGH BUSINESS AND REAL SYSTEMS CHANGE qualities of responsible leaders toward 2030:
To achieve the Global Goals, CEOs say business leaders must
Our 2016 CEO Study signalled a high point for business While indicating a desire and willingness to do more, leaders step up action not only for their own firms but, just as critically, • Pioneer systems change: Business leaders are increasingly
commitment on sustainability. Seventy percent of CEOs say market constraints and an ever more challenging business drive disruption of market systems. taking commercial risks, including accepting the less
believed the Global Goals – and their clear framework to environment and set of pressures continue to slow broad-scale economical options in the short-term to propel the economics
2030 - would help structure sustainability efforts for the transition to sustainable business – and that unless broader • Leaders say that all businesses must raise ambition through of sustainability forward through scale.
private sector in partnership with other stakeholders, and business is forced by a shift in economic incentives, action will stall. ‘threshold’ actions aligned with the 17 Global Goals (see p.46). • Drive market demand for sustainability: CEOs
nearly half (49%) of CEOs said business would be the most In fact, one in three CEOs of the world’s largest companies cite “lack acknowledge consumers may not be willing to pay for the
• CEOs are further stepping up to be a competitive force in
important actor in the delivery of the Goals. of market pull” as a top barrier to sustainable business. Further, better solution but say industry leaders must proactively
accelerating market drivers – including via adopting new
political uncertainty is reducing or stalling their sustainability drive sustainable behaviors and demand, making
technologies and engaging customers and consumers in
In 2016, CEOs saw a clear opportunity to recalibrate their efforts efforts for 42% of CEOs while a third (34%) specify market closures sustainability accessible for all.
sustainable business models – for their broader sectors:
in line with global milestones for sustainable development. and limitations on free trade as hindrances. Over half (55%) of
54% of CEOs say environmental degradation is increasing
Seventy-eight percent saw opportunities to contribute to the CEOs say that they are facing a key trade-off: pressure to operate • Build cultures of responsibility and sustainability:
their sustainability efforts.
Goals through their core business. We heard numerous examples under extreme cost-consciousness versus investing in longer-term Leaders should act as catalysts to set expectations and
of how they are creating genuine value and advantage as they go strategic objectives which are at the heart of sustainability. embed purpose-driven mindsets through their strategy,
CALL TO ACTION 2: organization and people.
about it - through new markets, products and services, resource
productivity and efficiency, or the engagement and motivation of Not content with that status quo, CEOs agree the business COLLABORATING TO SHAPE REALISTIC, • Know the issues and engage in science-based leadership:
key stakeholders from employees to communities to consumers. community could and should be making a far greater contribution to SCIENCE-BASED SOLUTIONS Business leaders will increasingly need to “get the issues”
achieving a sustainable global economy and societies by 2030. In the and engage with broader stakeholders in shaping and driving
That followed ten years of growing commitment, belief and context of the pace and scale of change in the global economy across For CEOs, the kind of systems transformation required is adoption of science-based solutions.
action from CEOs: In our 2010 CEO Study, 93% of executives areas like digital and biological technologies, coupled with a sense beyond the scope of any one company or industry. New forms
of global instability on issues like global trade and populism, CEOs of collaboration are essential to driving broad-scale action: • Extend responsibility to ecosystems: It is no longer
told us sustainability was critical to their future success.
see a clearer need for business action than ever before: 63% enough to lead within the firm and CEOs see a growing need
That number has grown over the years, especially for the
see Fourth Industrial Revolution (4IR) technologies as a critical • Shaping realistic, collective solutions: key actors must come to be “end responsible”, extend responsibility to suppliers
world’s largest companies, where it hovers at nearly 100%.
accelerator of the socioeconomic impact of their companies, together in honest dialogue on the challenges and trade-offs, and ecosystems beyond their direct control, and lift up their
and 88% of CEOs believe our global economic systems need to particularly business and government, to create the right industries through sharing of best practice.
For CEOs, in 2019 as in 2016, that commitment has never
wavered. These leaders are stepping up to drive results through refocus on equitable growth. Further, 65% overall – and more market conditions. • Collaborate non-competitively: To be successful, business
core business and embrace market opportunities for business than three-quarters of CEOs from Asian and North American leaders will need to engage in non-competitive partnership
• Levelling the playing field: in some cases, even where the right
advantage. In fact, just 26% of CEOs in 2019 cited “no clear link businesses – believe we need to decouple economic growth from and strategic alliances as they have not in the past — changing
policy framework is not forthcoming, industry leaders need to
to business value” as a barrier to sustainability compared to the use of natural resources and environmental degradation. the mindset to have “win-win” collaboration within and
step up non-competitively in coordination and exchange.
31% in 2016 and 37% in 2013. In addition, 40% of CEOs we surveyed beyond their industries.
in 2019 say sustainability is driving revenue growth and 35% CEOs we spoke to hold firm to the idea that business can, and • Driving localized action and results: businesses have
to elevate the role of effective, local partnership moving • Take sustainability personally: Personal motivation
are realizing value through cost reduction today. Leaders say an must, renew and double down on commitment and action to
seamlessly between global and local. continues to rise as a driver of sustainability, and our
unprecedented shift in public expectations is driving them to get make a significant impact on the Goals. Promisingly, over two-
research shows that leaders who are genuine in their
ahead on sustainability to build trust and competitiveness in their thirds (71%) of CEOs in 2019 believe that business can play
concerns for society and the planet are most effective
markets: 76% of CEOs say citizen trust will be critical to business a critical role in contributing to the Goals. Across our conversations, CEOs emphasize the role of
in driving sustainability and business performance.
competitiveness in their industry in the next five years. the United Nations and UN Global Compact in facilitating
For the first time, leaders in 2019 are calling for their sectors collaboration and concrete action at scale, by: bringing • Hold organizations to account and engage investors:
While the CEOs we spoke to are making real progress and driving and peers to step up action and course-correct the private sector actors together in dialogue on solutions; shaping and For global CEOs, responsible leadership means personally
both business and sustainability impact, the CEOs themselves contribution to the Global Goals. To accelerate progress, CEOs advocating consistent standards; and building bridges “walking the talk”, holding their organizations financially
told us that their industries and business as a whole are not identify three critical requirements: between business, national and local governments. accountable for sustainability, and meaningfully engaging
doing enough. Those same leaders agree that for the majority of investors on its value to business.
businesses, awareness and commitment is not driving the level 1. An urgent need to raise corporate ambition within their own CALL TO ACTION 3: • Lead change with authenticity: Perhaps most cited by
of urgency and concrete action required. They recognize – organizations through ‘threshold’ actions and also DEFINING RESPONSIBLE leaders across our conversations, CEOs emphasize future
according to the numbers – that even their own businesses are lead systems transformation more broadly against the
LEADERSHIP FOR 2030 leaders will need to define a sense of authenticity and
not doing enough. The 2019 UN Global Compact Progress Report 17 Global Goals, mindful that not all Goals will apply to all
vulnerability to effectively embrace a growth mindset
showed that 48% of companies are implementing sustainability businesses in the same way. This year, we observe a clear shift in CEOs’ views as they identify and engage in constructive collaboration.
into operations. In 2019, just 21% of CEOs believe business is a growing imperative to look beyond near-term profits and embrace
playing a critical role in contributing to the Goals. 2. The need for business, governments, regulators and their role as change agents to meaningfully drive forward the Global
nongovernmental organizations to come together to shape Goals. Fully 95% of CEOs say they are personally committed
realistic, science-based solutions to the global challenges.
14 UN GLOBAL COMPACT CEO STUDY 2019 | 15
AN UNCERTAIN
OUTLOOK
TO 2030
“It is abundantly clear that a much
deeper, faster and more ambitious
response is needed to unleash the
social and economic transformation
needed to achieve our 2030 goals.”
António Guterres, Secretary-General, United Nations
16 UN GLOBAL COMPACT CEO STUDY 2019 | 17
AS WE APPROACH 2020 GEOPOLITICAL,
AND TEN YEARS TO TECHNOLOGICAL AND
ACHIEVE THE GLOBAL SOCIOECONOMIC FACTORS
GOALS, IT IS CLEAR THAT CLOUD 2030 OUTLOOK
WE ARE NOT ON TRACK Amid a growing urgency to unlock action at an unprecedented
scale toward 2030, business leaders told us that they face an
The global community witnessed a high point in 2015 ever more competitive and challenging business environment
as leaders around the world unanimously adopted the and set of pressures, and the intensity is unlikely to change in
landmark Paris Agreement and crafted the 2030 Agenda the decade ahead.
for Sustainable Development. The creation of the 2030
Agenda is a testament to our united ability to develop Geopolitically, fragmentation and volatility have led “Uncertainty and volatility are the areas
the boldest of agendas. Similarly, the Paris Agreement to political and economic uncertainty. The retreat from where we are facing the most challenge.
is hailed as one of the world’s greatest diplomatic globalization and the concentration on domestic rather Uncertainty is significant and is
successes. Signed by 195 member states, it negotiated a than international markets could shrink economies, spike creating more volatility.”
common front against greenhouse gas emissions (GHG), unemployment and enhance protectionist barriers. UN
with the goal to hold global average temperatures to well Secretary-General António Guterres termed these conditions Emanuel Chirico, Chairman and
below 2 degrees Celsius above pre-industrial levels. a “trust deficit disorder” plaguing the world as he addressed Chief Executive Officer, PVH Corp.
the 73rd United Nations General Assembly in 2018.
In the four years since, there have been bright spots of
progress: the global population live better lives than
they did a decade ago, infant mortality under the age of Socioeconomically, structural trends are driving greater “We face exceptional challenges across
five has declined from 77 to 39 per 1,000 births since environmental stress and social inequality. According to many fronts; climate change, resource
2000-17.1 However, in a number of areas, advancement the United Nations, the global population will reach 9.7 scarcity and growing inequality, just
towards the Global Goals has been slow or even billion by 2050 and the middle class is expected to grow to to mention a few. As a multinational
reversed. Today, more than 700 million people continue 5.3 billion by 2030.7 To accommodate the impact of these company we have a big responsibility –
to live in extreme poverty2; over 170 million remain shifts — and increasing demand for resource-intensive goods, and an opportunity – to make a positive
jobless3; and more than 70 million people seek refuge.4 difference on climate change.”
such as protein consumption, housing and mobility — the
Famine, extreme climate events, overpopulation, water global economy needs to be re-engineered in a manner that
scarcity, gender-based violence and a rise in violent Jesper Brodin, CEO, Ingka Group
decouples it from resource use.
extremism and armed conflict continue to define lives
around the world. The most vulnerable people and
countries continue to suffer the most, and the global Technologically, the world is entering the Fourth
response has not been ambitious enough. Industrial Revolution (4IR), and the pace and scale of “The technological revolution is a
digital, biological and physical innovation could accelerate unique opportunity, but one cannot
A plethora of recently published scientific studies our problems – or if deployed in a connected way and with ignore the issue of accessibility.
highlights the implications of inaction. In October 2018, the right business investment and policy frameworks – The gap between those who are
the Intergovernmental Panel on Climate Change (IPCC), technology breakthroughs could be the key to achieving qualified and those who are not may
warned that unless the world heeds the commitment the Global Goals. lead to unprecedented crisis.
set in Paris, even half a degree rise in global temperature Reducing this divide and making
would significantly worsen the risks of drought, floods, technology accessible to everyone
extreme heat and poverty for millions.5 To avoid that must be a shared ambition for public
scenario, GHG emissions must be slashed by 45% by and private organizations.”
2030 and carbon neutrality achieved by 2050. Crucial
Florent Menegaux, CEO, Michelin
action is needed, too, to reverse land degradation to avert
the sixth mass species extinction in history and halt the
The global community is at an inflection point in balancing
approximately eight million tons of plastic litter that 1. World Bank Database, Mortality Rate under-5
these geopolitical, technological and sustainable 2. United Nations (2019), Goal 1: No Poverty
enters oceans.6 This warning was raised by the United
development challenges on the road to 2030. 3. ILO (2019), World Employment and Social Outlook 2019
Nations Environment Programme (UNEP) in its sixth 4. United Nations (2018), Refugees
The opportunity is there. But real change is needed. 5. IPCC (2018), Global Warming of 1.5 C Special Report
Global Environment Outlook (GEO-6) in March 2019. 6. UNEP (2019), Global Environmental Outlook 6
7. WEF (2018), Global Gender Gap Report 2018
18 UN GLOBAL COMPACT CEO STUDY 2019 | 19REALITY CHECK:
BUSINESS
CONTRIBUTION
TO THE GLOBAL
GOALS IS NOT
ENOUGH
21%
of CEOs believe
business is
currently playing
a critical role in
contributing to
the Global Goals
20 UN GLOBAL COMPACT CEO STUDY 2019 | 211%
BUSINESS CONTRIBUTION TO compared with 97% in 2016. While the overall drop is largely FIGURE 1:
99%
driven by small and medium-size enterprises, 63% of which
THE GLOBAL GOALS IS NOT cite lack of financial resources as the main impediment,
ENOUGH, SAY CEOS nearly all (99%) of the CEOs of the world’s largest companies
say sustainability issues are important to the future
In the 2016 study, business leaders’ attitudes toward success of their businesses. Over the past six years, we have OF CEOS FROM COMPANIES
observed an uplift in importance in North American and WITH MORE THAN $1 BILLION IN 6%
sustainability reached a peak as CEOs saw a window of
Asian companies: In 2019, 68% of CEOs of North American ANNUAL REVENUES BELIEVE 32%
opportunity to recalibrate their sustainability efforts in line
businesses rank sustainability as “very important”, up from SUSTAINABILITY WILL BE
with global milestones. Seventy percent of CEOs believed the
57% in 2013. Similarly, the same numbers for business
IMPORTANT TO THE FUTURE 2%
Global Goals would provide a clear framework to structure SUCCESS OF THEIR BUSINESS
sustainability efforts, and 90% told us they were personally leaders from Asian companies increased from 52% in 2013
committed to ensuring that their companies lead on the to 63% in 2019.
52%
sustainable development agenda. Our conversations with 40%
CEOs reflected a broader commitment from the business Sustainability continues to become embedded in overall
community to sustainable development alongside national corporate strategy, and in our one-to-one conversations, it
governments and international institutions to achieve our is clear that CEOs that are serious about sustainability have
shared vision to 2030. brought it into the mainstream of their businesses. According
How important are sustainability
to Axel A. Weber, Chairman of the Board of Directors of UBS 67%
issues to the future success of
In stark contrast to these views, in 2019, business as a whole Group AG, “You must be operating sustainably in all parts of
your business?
is not playing a leading role in advancing the Global Goals. your organization before you can become a credible player in
$1 BN
48% are implementing sustainability into operations. OPPORTUNITIES TO DRIVE
CORE BUSINESS
This contrast is worth examining, and in the following pages
we explore the reflections from CEOs on the reasons for this This group of CEOs believe there is real opportunity for
apparent crisis of broad-scale commitment and action across growth, efficiency, reputation and innovation.
business as a whole. FIGURE 2: CEOS INABILITY TO LINK SUSTAINABILITY TO
BUSINESS VALUE HAS CONSISTENTLY FALLEN SINCE 2013
For business leaders, linking business value to sustainability
has improved, and companies that are ahead drive improved
UNDERSTANDING THE SCOPE OF SUSTAINABILITY: Which barriers keep you, as CEO, from implementing an integrated NO CLEAR LINK TO BUSINESS VALUE
results in their core business. The percentage of CEOs citing
Throughout this report, we use the term “sustainability” to encompass and strategic company-wide approach to sustainability issues? LACK OF KNOWLEDGE
“no clear link to business value” as a barrier to sustainability
environmental, social and corporate governance issues as covered by the
UN Global Compact’s Ten Principles and by the United Nations Sustainable
has consistently dropped: from 37% in 2013 to 31% in 2016 to
Development Goals (SDGs), also referred to as the Global Goals for 26% in 2019. Unilever’s Sustainable Living Brands, for instance, 37%
Sustainable Development. are delivering 75% of the company’s growth.8 Alan Jope, CEO
of Unilever, commented, “Purposeful brands consistently
outperform other brands; they are both faster growing and 31%
SUSTAINABILITY CONTINUES more profitable.” In another example, Feike Sijbesma, CEO of
Royal DSM, notes that it has been a journey for the company
TO MOVE HIGHER ON THE to build a profitable sustainable product portfolio: “About
26%
AGENDA, WITH GROWING 12 years ago, several people thought sustainability would
21%
COMMITMENT, BELIEF AND cost money and was nice to do. Now, 12 years later, our value
creation, also financially and for shareholders have proved
ACTION FROM CEOS that sustainability, creating value for our society and planet
11%
can go hand-in-hand with business successes.”
8%
Despite the lack of sufficient progress, companies at the
forefront are galvanized around sustainability and intent CEOs recognize that sustainability can drive competitive
on transforming their companies. The importance of advantage. Forty percent are seeing business value through
sustainability to core business is stronger than ever for large, revenue growth, 37% through risk mitigation and 25%
global companies. In 2019, 94% of CEOs say sustainability through cost reduction today. We heard numerous examples
2013 2016 2019
issues are important to the future success of their business, of how CEOs are creating genuine value and advantage, such
22 UN GLOBAL COMPACT CEO STUDY 2019 | 23as through new markets, products and services, resource evolving, often in alignment with the Global Goals. FIGURE 3: CONSUMERS, EMPLOYEES RECOGNIZED Over the next 5 years, which stakeholder groups do
productivity and efficiency. In South Africa, for instance, Denis Machuel, Chief Executive Officer of Sodexo, told us, AS KEY TO HOW CEOS MANAGE MANAGE you believe will have the greatest impact on the way
SUSTAINABILITY GOING FORWARD
Woolworths Holdings Limited worked with their food “We are a serving a variety of populations, and the voice of the you manage sustainability?
manufacturers to introduce soil management practices that consumer has tremendously evolved in line with the 17 UN
reduced water requirements and increased control over SDGs and the expectations of new generations, will force a
waste.9 As a result, their suppliers were able to continue shift in the way business operates – it is a very positive trend.” CONSUMERS GOVERNMENTS SUPPLIERS BOARDS
53% 41% 25% 23%
growing produce varietals in a period when others were not.
It helped the business expand and take market share while The consequences of inaction is also a strong driver for
also enhancing national food access in a period of drought. business leaders to ramp up their efforts; license to operate
and reputation are at risk if they don’t. As one CEO told us,
Overall, direct to consumer (D2C) companies anticipate “Consumers quickly lose patience and can easily turn into
sustainability delivering greater value compared with protestors.” Among CEOs interviewed, sustainability is
business to business (B2B) companies: 58% of CEOs from nonnegotiable. In the words of Natura’s CEO João Paulo
D2C companies think sustainability will drive revenue growth Ferreira, “There is no doubt sustainability has become a REGULATORS
30%
overthe next five to ten years, compared to 53% of CEOs must-have. Consumers are aware of global issues in a way INVESTMENT
COMMUNITY
NGOS
12%
20%
from B2B companies. Yet our conversations reveal that they were not five years ago…If at any point, consumers learn
EMPLOYEES
sustainability demands on B2B companies will intensify, that a company or brand cannot be trusted, those brands will 44%
as interest in sustainability makes its way upstream in the be heavily damaged.”
value chain. In the oil and gas industry, Bob Dudley, CEO of BP,
observes, “There is more interest among B2B customers in Calls for companies to be bolder and more ambitious COMMUNITIES
27%
environmentally sustainable products even if they have to pay on sustainability are coming from a widening range of MEDIA OTHER 5% ORG
12%
a premium - this is a new and interesting development.” In the stakeholders. Employees, for instance, are now an important LENDERS,
LA-
BOR
construction industry, Anders Danielsson, President and CEO influencer. In our one-to-one conversations, CEOs especially INSURERS &
UNDERWRITERS
of Skanska AB, told us, “A large part of our revenue comes from emphasized the role of younger generations in holding their 4% NONE
green projects – almost half of our construction revenue.” employers to higher standards and demanding purpose-driven
careers. Sustainability has become a key driver of recruitment
GROWING EXPECTATIONS ARE and retention, especially with younger generations. According
to T V Narendran, CEO & Managing Director of Tata Steel
INCREASING OPPORTUNITIES Limited, “Young people are looking at a company’s approach
FOR BUSINESS ADVANTAGE to sustainability while deciding on which companies to work FIGURE 4: WHILE CONSUMERS CONTINUE TO DRIVE
SUSTAINABILITY EFFORTS FOR D2C INDUSTRIES,
Over the next 5 years, which stakeholder groups do you
for.” In the words of Patrick Decker, President and Chief believe will have the greatest impact on the way you
EMPLOYEES, REGULATORS AND GOVERNMENTS ARE A
Rapidly increasing stakeholder expectations are driving Executive of Xylem, “The younger generation is drawn to manage sustainability?
MATERIAL FORCE FOR CHANGE AS WELL
business leaders to be more proactive on the sustainability higher purpose and mission – ‘why are we doing this?’ It’s not
agenda, and move ahead even if the market lags behind. Over purely the profit motive.”
Consumers 53% Consumers 70% Consumers 79%
the past few years, business leaders across industries have Suppliers
FOOD & Governments
PERSONAL &
HOUSEHOLD Employees
AUTOMOBILES
seen a tremendous increase in the level of public awareness Leaders see a compelling argument to raise their ambition & PARTS Communities
BEVERAGE
Regulators
GOODS
Governments
and engagement on social and environmental issues. and drive sustainable growth for the planet, people and Governments Consumers 62% Consumers 55%
profits. Alex Ricard, Chairman & Chief Executive Officer of Regulators 50% Boards
REAL Employees 55%
HEALTH ESTATE
Consumers and employees are among the top stakeholders, Pernod Ricard, told us, “As CEO, I need to recognize where BANKS Boards 50% CARE Employees Governments
53% and 44%, respectively, that CEOs recognize will be most consumers want us in ten years, and make those decisions Governments Regulators Consumers 67%
influential in how they manage sustainability over the next five today...I believe businesses that are only targeting profits, Governments 44% Consumers 54% Employees
INDUSTRIAL RETAIL
years. Consumers are holding companies to higher standards. will die. Only those targeting all stakeholders will remain Consumers GOODS & Employees Regulators
SERVICES
For Mark Hunter, President and CEO of Molson Coors, “Our profitable in the future.” Speaking on growing sustainability BASIC
RESOURCES
Communities Governments Governments
consumers and our customers are looking for assurances trends, Marco Tronchetti Provera, Executive Vice Chairman Regulators Regulators 60% Employees 61%
that we are doing business the right way. It’s becoming table and CEO of one of the largest tire manufacturers, Pirelli, said “It Investment Community INSURANCE Consumers TECHNOLOGY Consumers
stakes and that creates a healthy tension, where we are trying [sustainable mobility] provides a competitive edge – we and Consumers 58% Investment Community Governments
to get ahead of their requirements, and they are holding us our competitors are all moving in the same direction.” CHEMICALS Regulators Consumers 57%
TELECOMM-
Consumers 70%
Boards MEDIA Employees 57% Governments
UNICATION
to account.” Looking across industries, predominantly D2C Employees 52% Communities Employees
8. Unilever (2019) Sustainable Living Brands
businesses, such as retail and personal and household goods, 9. Woolworths Holdings, Farming For the Future
CONSTRUCTION & Consumers Communities 71% Governments 53%
MATERIALS
are mostly driven by consumers; however, leaders of B2B Governments Governments
TRAVEL &
Employees
LEISURE
OIL & GAS
companies also observe growing pressures. For instance, Employees 52% Regulators Consumers
French food services company, Sodexo, notes that the voice FINANCIAL
SERVICES
Consumers Boards Consumers 52%
of the consumers it serves – whether a hospital patient, a Governments Governments UTILITIES Employees
university student, or an employee in the workplace– is rapidly Regulators
24 UN GLOBAL COMPACT CEO STUDY 2019 | 25TRUST & PURPOSE:
LICENSE TO COMPETE
As expectations continue to rise, CEOs see a renewed
imperative to ensure that their companies contribute
positively to the communities in which they operate. Trust has FIGURE 5: 76% OF CEOS SAY TRUST WILL
BE CRITICAL TO COMPETITIVENESS IN
become critical to remaining competitive. More than three-
THE NEXT FIVE YEARS
fourths (76%) of CEOs say citizen trust will be critical to their
businesses, and almost half say it is fueling their enhanced
sustainability efforts. To what extent do you agree with the following statements
on globalization, Fourth Industrial Revolution technologies
and sustainable development?
“Trust is such an important element Citizen trust will be critical to business competitiveness
in my industry in the next five years “There is no difference between our
in everything, and it is being broken business strategy and our sustainability
down everywhere.” Strongly agree 6% strategy…they are totally integrated.”
Agree
Kristin Skogen Lund, Neutral Alan Jope, CEO, Unilever
Disagree
CEO, Schibsted Media Group
18% “The millennials and the younger
generation are adamant; they are
To build trust, companies are looking to better articulate and 37% true believers in Sustainability.”
embed their societal purpose. The CEO of a 100-plus-year-old
Fortune 500 brand, for instance, spoke of how the increasing Patrick Chalhoub, Chief Executive
pressure to define its value to society — primarily from young Officer, Chalhoub Group
employees — spurred a bottom-up process to refresh the
39%
company’s central purpose. Drawing inspiration from the
“The time will come when there will be
17 Global Goals, the company curated a framework that
a threshold question that consumers
redefined a shared vision and strategic direction for the brand.
will ask which is ‘can I trust this brand?’,
Higher standards of transparency further compel companies and if the answer is ‘no’ they won’t
to self-regulate their actions to remain resilient to trust buy anything. It will become a binary
failures. According to Yoshihiro Hidaka, President, Chief question.”
One common theme we have heard from CEOs this year is
Executive Officer and Representative Director of Yamaha
the re-emphasis on “license to operate” or rather “license
Motor Co., Ltd : “Unless a company discloses its sustainability Bruce Cleaver, CEO, De Beers Group
to compete and partner,” with a growing importance on
initiatives and corporate value, the stock price will be affected.”
the need for companies to be welcomed by communities
where they operate. In the words of Stephen McCann, Group “Our consumers want to engage with
Citizen trust is especially critical for CEOs from the
Chief Executive Officer and Managing Director of Lendlease brands they trust. In some cases, in
telecommunications, insurance and banking sectors, order to honor that trust, you need to
Group, “Governments grant permits, but communities grant
reflecting recent scandals and data breaches: upwards of be willing to raise the bar or take a
permission.” Amazon’s pull out from its plan to build its HQ2
90% of CEOs from those industries say trust will be critical stand, regardless of what the market
campus in Queens, New York, following community backlash is
to their businesses, especially given companies’ delayed
just one example of the rising power of the voice of local citizens.
is saying.”
or inadequate responses to these types of failures reduce
trust for the whole industry. While D2C industries that are Emanuel Chirico, Chairman and
closest to the consumer emphasize the importance of trust, “We get a license from society to operate. Chief Executive Officer, PVH Corp.
we also observe the value of trust for B2B business leaders There are plenty of ways that society can be
in other areas of sustainability. For example, 79% of CEOs punishing. We can’t take that for granted - we “I believe businesses that are only
in the chemical industry say trust on these issues will drive have to continually earn the public’s trust.” targeting profits, will die. Only those
competitiveness in the industry. According to Eldar Sætre, targeting all stakeholders will remain
CEO of energy company Equinor: “Trust is now a critical profitable in the future.”
Douglas M. Baker Jr., Chairman
issue. It determines your relationship with society.”
and CEO, Ecolab, Inc. Alex Ricard, Chairman & Chief
Executive Officer, Pernod Ricard
26 UN GLOBAL COMPACT CEO STUDY 2019 | 27SUSTAINABLE DEVELOPMENT AT FIGURE 6: WHILE DIGITAL DOMINATES BUSINESS INVESTMENTS OVERALL, INVESTMENTS IN
PHYSICAL AND BIOLOGICAL TECHNOLOGIES VARY ACROSS INDUSTRIES
A CROSSROADS: FOURTH INDUSTRIAL
DIGITAL
PHYSICAL
Which technologies are you investing in today to tackle sustainability challenges? BIOLOGICAL
REVOLUTION (4IR) TECHNOLOGIES AND
THE GLOBAL GOALS
Automobiles & Parts 38% 55% 8%
Banks 80% 15% 5%
Basic Resources 38% 47% 15%
Chemicals 17% 54% 29%
Construction & Materials
The Fourth Industrial Revolution (4IR)* brings an array of markets don’t get themselves organized, they will be on the wrong 52% 40% 8%
innovations, across the digital, physical, and biological worlds. side of history in a world of automation, AI and machine learning.” Financial Services 73% 20% 6%
From electric mobility to product traceability to cellular and These downside risks warrant greater focus on lifelong learning, Food & Beverage 42% 37% 22%
tissue engineering, technologies are sparking transformational and CEOs note the important role for business. As Frans van Houten, Health Care 55% 24% 21%
change across global value chains, unlocking value while delivering CEO & Chairman of Royal Philips told us, “The future of work will have Industrial Goods & Services 65% 30% 5%
outcomes for sustainable development. Water technology a major impact on the global population. As we live longer, we’ll need Insurance 96% 4%
company Xylem, for example, developed a digital twin of the to work longer. Providing people with lifelong learning and the skills Media 73% 26%
city of South Bend, Indiana’s sewer system and used artificial required to adapt to technological change must become the norm. I
Oil & Gas 43% 39% 18%
intelligence (AI) to analyze and optimize storm water surges to don’t think society is ready for this yet...Companies and employers
Personal & Household Goods 50% 36% 14%
avoid overflows that pollute local waterways – preventing more have a responsibility to support continuous education. We have a
Real Estate
than 1 billion gallons of storm and sewer water from entering the clear view of the skills and capabilities required to be competitive 62% 33% 5%
St. Joseph River every year. This is expected to help the city reduce and can plan for the future.” Retail 69% 24% 7%
its construction budget by $500 million that would have otherwise Technology 89% 10%
been needed to build more underground tunnels to hold excess The majority of CEOs believe technology breakthroughs are the Telecommunications 94% 6%
storm water, conserving energy and lessening human impact on key to achieving the Global Goals Travel & Leisure 62% 17% 21%
the environment. Utilities 53% 39% 8%
“The data will tell you it’s all too late, but that’s because that data
According to our survey,there is already significant investment in does not take into account exponential improvement in technology,”
digital technologies to drive sustainability outcomes: 75% of CEOs remarks Stephen McCann, Group Chief Executive Officer and
say they are investing in digital to address sustainability challenges. Managing Director of Lendlease Group. This broadly captures the
There is also opportunity to further unlock the combinatorial effects sentiment of CEOs as 63% see 4IR technologies as a critical factor
of biological and physical innovation: for instance, 51% of CEOs say for accelerating the socio-economic impact of their company. Across FIGURE 7: THE INVESTMENT GAP BETWEEN TECHNOLOGIES CEOS SAY WILL BE MOST TRANSFORMATIVE
they are investing in physical technologies while 70% say they will these technologies, CEOs highlight big data and analytics, artificial AND WHERE THEY ARE INVESTING IS GREATEST FOR PHYSICAL AND BIOLOGICAL TECHNOLOGIES
be transformative for their industries, and just 17% are currently intelligence, internet of things (IoT), robotics and cloud and edge
WHICH TYPES OF TECHNOLOGIES WILL BE THE MOST TRANSFORMATIVE TO YOUR INDUSTRY’S ABILITY TO TACKLE SUSTAINABILITY CHALLENGES?
investing in biological technologies while 32% of CEOs say they will be computing as their top five transformative – and most invested -
OF THESE, WHICH IS YOUR COMPANY INVESTING IN MOST TODAY?
able to tackle sustainability challenges. technologies today (see Figure 7). According to Sandra Wu, Wen-Hsiu,
Digital Technologies Physical Technologies Biological Technologies
Chairperson and CEO of Kokusai Kogyo Co.,Ltd., “Technological
Throughout our discussions, business leaders spoke to the potential advancement is a ‘pull’ factor trend, that brings innovation to 85% 70% 32%
Total % of CEO Responses
upside and downside of the 4IR, emphasizing that in a sense, the complex issues.” 75% 51% 17%
world is at a crossroads, and the choices made now could exacerbate
challenges or potentially provide the only real pathway of solutions Investment varies across industries: the chemicals industry is 50% 36% 20%
Big Data Advanced Analytics Robotics Bio-energy
42% 27% 10%
toward 2030. most heavily invested in physical and biological technologies, 54%
and 29% respectively. Braskem, for example, in partnership with the AI/ML
47%
Material Science
21%
Bio-based Materials
14%
29% 15% 8%
Business leaders are managing the downside risks and North American footwear company Allbirds, has developed Green
focused on the opportunities EVA (Ethylene Vinyl Acetate copolymer) from a renewable source loT
36%
Electric Vehicles
19%
Genetic Engineering
5%
30% 10% 2%
as part of the I’m greenTM brand. GHGs are captured during the
Enthusiasm about the upside of the technology revolution is met by production process, reducing emissions. 1 kilo of EVA I’m greenTM Cloud/edge Computing
27% Large Scale 17%
Cellular and Tissue Engineering
3%
30% Energy Storage 7% 1%
unease on its unintended impacts, and if not carefully managed, captures 2.51 kilos of CO2 compared to 1 kilo of fossil EVA which
23% 14% 3%
new technologies can shake up the development agenda for releases 1.84 kilos of CO2 into the atmosphere. In the energy DLT/Blockchain 3D Printing Hydroponics and Aeroponics
14% 8% 2%
the worse. Accenture’s 2018 report, Inclusive Future of Work: industry, Maersk Drilling A/S, for instance, is launching the first
15% 10% 2%
A Call to Action, estimates that 57% of worker roles are highly hybrid, low-emissions rig on the Norwegian Continental Shelf. AR/VR
10%
Nanotechnology
3%
DNA Marking
2%
susceptible to automation, threatening worker job security, unequal It uses batteries for large scale energy storage and cloud-based
SG 14% 9%
access to training and, lower proficiency in high-demand skills.10 systems for continuous optimization.11 Chief Executive Officer, 7%
Autonomous Vehicles
5%
However, intelligent technologies - the same report finds - also bring Jørn Madsen, told us, “We are optimizing and using digital, which
Machine-to-machine 14% 6%
opportunities for growth: AI alone is expected to boost revenues by brings down diesel use and emissions.” communication 11%
Physical Markers
5%
38% and employment by 10% by 2022. Rob Shuter, Group President 4% 2%
Machine Vision Next Generation
& CEO of the South African telecommunications company MTN *A term which has gained currency by Klaus Schwab, Founder and Executive Chairman 3% Nuclear 1%
Group speaks to job disruption in developing economies, “If emerging of the World Economic Forum, and his book, “The Fourth Industrial Revolution”, 4IR
4% 1%
technologies are characterized by a range of new technologies that are fusing the Quantum Computing Spectoscopy
2% 1%
physical, digital and biological worlds.
10. Accenture (2018) Inclusive Future of Work: A Call to Action
11. Maersk Drilling (2019) Maersk Drilling to launch first hybrid, low-emission
28 UN GLOBAL COMPACT CEO STUDY 2019 | 29You can also read
