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Global

C-suite

Series25th

EditionThe

CEO

StudyIntheirownwordsHowCEOsareforgingpathstosustainabilityIBM

Institute

for

Business

ValueWe

are,

quite

literally,in

the

eleventh

hour

ofclimate

change.As

noted

naturalist

Sir

David

Attenboroughsaid

at

the

COP26

UN

Climate

Conference:“We

are.

.

.

thegreatest

problemsolvers

tohaveeverexistedonEarth.Ifworkingapart,we

area

forcepowerful

enoughtodestabilizeourplanet,

surelyworking

together

we

arepowerful

enoughtosave

it.”1No

one

knows

this

better

than

chief

executives

oflarge

global

organizations.

In

the

IBM

Institute

forBusiness

Value’s

(IBV)

latest

research

with

CEOs,they

shared

with

us

their

greatest

challenges

over

thenext

several

years.

Many

of

the

challenges

that

fill

theheadlines—supply

chain

success

in

uncertain

times,changing

workforce

demands,

and

more—didn’tmake

the

final

cut.

They’re

important,

of

course,but

were

not

cited

as

the

top

challenge.CEOs

reserved

the

top

spot

for

sustainability—so

muchso

that

in

2022,

sustainability

was

ranked

as

a

CEO

toppriority

37%

more

frequently

than

in

our

2021

study.Urgency

of

action

was

a

key

theme.2CEOs

were

clear

that

while

making

sustainabilitya

priority

is

good

for

the

world,

it’s

also

good

forbusiness.

More

than

80%

say

sustainabilityinvestments

will

drive

better

business

results

in9%

10%

35%

35%

17%the

next

five

years.3TheyalreadydoWithin1

year1–3years3–5yearsMorethan

5yearsThe

IBM

Institute

for

Business

Value,

in

cooperationwith

Oxford

Economics,

interviewed

3,000

CEOsfrom

40+

countries

and

28

industries

as

part

of

the25th

edition

of

the

IBM

C-suite

Study

series.

Theseconversations

focused

on

executives’

perspectiveson

leadership

and

business;

their

changing

roles

andresponsibilities;

and

sustainability,

including

howthey

are

addressing

challenges,

what

they

see

asopportunities,

and

their

visions

for

the

future.Expecting

resultsMore

than

80%

of

CEOs

say

sustainability

investmentswill

drive

better

business

results

in

the

next

5

years.Hear

the

CEOs

in

their

own

words:https://ibm.co/ceo-sustainability1“CEOs

have

tolead

withpurposeThey

have

tobe

intentionalandonmakingroom

for

sustainabilItisn’t

philanthropy.

Itisn’t

a

prItisn’t

a

separatedepartment.

Icore

towhoyou

are.

It’s

inyourcorporate

DNA

andit’s

partof

yenterprisestrategy.”O(jiān)ur

latest

CEO

study,

titled

“Own

your

impact:Practical

pathways

to

transformational

sustainability,”is

based

on

research

with

3,000

CEOs

from

around

theworld.

It

offers

rich

insights

and

perspectives

into

howCEOs

are

acting

on

sustainability

goals

as

part

of

alarger

purpose-driven

strategy.

In

the

pages

that

follow,we

share

more

of

what

CEOs

told

us

in

their

own

words.Think

of

it

as

a

virtual

roundtable

of

sorts,

in

whichparticipants

explain

how

they’re

moving

from

ambitionto

action

to

bake

sustainability

into

their

business

andtheir

ecosystems.Sheri

HinishGlobalSustainabilityServicesLeadIBMConsulting23“We

arebeing

very

proactive

inpublishingour2030targets.But

whenyou

talkabout

sustainability,it’s

notjust

what

ATCO

can

do,it’s

notjust

what

thegovernment

can

do,it’s

notjust

what

ourconsumers

are

going

todo.Ifwe’re

going

tohitnetzero

targets

for

2050,noindividualbusiness

orgovernmentcan

reallysolve

that

ontheirown.Do

you

believeorganizationscan

achieveThishastobea

majorcollaborative

effortamongst

allof

theconstituents.It’s

like

anything

else:You

setyour

targets,you

setyour

key

KPIs,you

setyour

objectives,andyou

work

through

them.”sustainability

solo?Or

is

systemschange

required?MarshallWilmotPresident,

Retail

and

CDOATCO45FelipeNascimento“Smallacts,

whentheymultiplybymillionsofpeople,cantransformtheworld.We

know

that

we

cannot—nor

dowe—do

allthisonourown.CEO

of

MAPFRE

Seguros,the

Brazilian

businessof

a

Spanish

multinationalinsurance

company“Doesthebusinesscommunity—notjustindividualentities—haveaparticularresponsibility?Yes,

withoutanydoubt.Everybusinesscommunityshouldtakeresponsibilityforsustainability.Becausesustainabilityincludesthreemainaspects:economic,ecological,andsocialsustainabledevelopment.But

we

understand

that

thetimehascometowalk

morethanever

towards

thefuture,withresponsibility

andtrust.”Thebusinesscommunityisaverypowerfulforce,shapingthesethreeaspects.Ineconomics,

for

example,

business

isat

theheartof

thesocialeconomy.Intermsof

ecology,

many

environmentalpollutionproblems

are

causedbycommerce

andindustry.

Thesame

istrueof

thesocial

aspect;whetheritismore

employmentopportunitiesortheimprovementofsocialproblems,theyrequirebusinesslogictosolve.Therefore,fromthesethreeaspects,thebusinesscommunityhastheability,

theobligation,andtheresponsibilitytobeanimportant

backboneof

sustainability.Sustainabilityitselfisa

matter

for

allhumanbeingsandanunshirkableresponsibilityof

all..

.

Ontheotherhand,

theroleofasinglegroup,asingleforce,whetheritisbusiness,government,society,orindividualisalwayslimited.Onlythroughtheeffortsofmanyparties

cantheworldachievesustainability.”“We

need

tohave

a

commonvision.SheriHinishWe

need

tomove

together

becausewe’re

at

a

realinflectionpoint

rightnow.

What

lies

ahead

isn’tsomething

that

one

single

organization

cansolve.Global

SustainabilityServices

LeadIBM

ConsultingWu

JingThese

are

complex,

interconnectedproblems.”Deputy

General

Manager

of

SinochemInformation

Technology

Co.,

Ltd.China67“Sustainability

hasbeena

partof

ourDNA

since

Desjardinswas

foundedin1900.Morerecently,

we’ve

strengthenedourcommitment

tosustainability

throughconcrete

actions.From2017to2020,wedeveloped

ourfirstplanfora

strongerimpact

onsustainability

andclimate

change.

We

werelooking

atitinternally:ourprocessesandpolicies,ourbuildings,andhowtransportation

wasbeing

handled

withinDesjardins.

We

looked

atreducing

ourcarbonfootprintwithourown

activities.Inour2021to2024plan,

we

wanttoinfluence

people.

Alongwithourown

activities,

wewillprogressively

integratethecarbon

footprintofallourclientsandmembers—totry

andreducethecarbon

footprintofthewholepackageDesjardinshastooffer.For

example,

we

selected100of

ourtopsuppliersandstartedanengagementcampaigntowork

witheachof

themtoreduceoursupplychaincarbonfootprintbasedonclearmetrics.Second,we

integratedESGcriteriainevery

aspectof

ourbusiness,

includingfinancingprojectsfor

bigbusinesses.

Since2018,we

haverefusedasignificant

numberofrequestsfromcompanieswhohaveaskedusforfinancing.

We’vesaid‘no’toactivitieswhereweweren’tsurethattheESGcriteriawerereally

integrated:

governance

issues,

climatechange

issues,

healthorsocialacceptability

issues.Share

what

yourorganization

is

doingright

now

to

helpIn2020and2021,I

created

a

committee

thatreports

directlytothemanagement

committee,witha

vicepresidentfromeach

ofourbusiness

units.

TheymeetregularlyandmustchampionESGcriteriaineach

oftheiroperationsandgiveusproactivesolutionsfortheirmarketandindustry.Thisworkinggroupisembedded

inourgovernance.Lastly,

I

introduceda

change

toourbonusprogramsthisyearfor

the58,000employeesandthemanagement

committee.

They

now

have

a

percentage

of

theirbonusthat

istotallyconnectedtoESGcriteria,whichwillprovide

a

strong

financialincentive

for

everyoneatDesjardinstocontribute

tooursustainability

objectives.”improve

sustainability.Guy

CormierChair

of

the

Board,

President,and

CEO

of

Desjardins

Group89“Iwas

veryproudof

ourcompany

coming

outwithourESGprograminJanuary,

putting

ourmoney

whereourmouthis,

setting

sometargets,

andgetting

everybody

focusedintherightdirection.I’m

proudtobewitha

company

that

iswillingtodothat.“We’ve

setaninternalagenda,

actionstoreduceourclimate

impact.We

want

tomeetthegoalswe’ve

setfor

theyear2030ina

way

thatconsumes

less

energy,whilesourcingthemajorityoftheenergyweusefromrenewablesources.We

divested

ourselves

of

ourfossil

fuelpower

generation,

whichwas

a

significantreductioninourgreenhousegas

contributions.

We’ve

beenreinvesting

someof

that

intorenewableresources.

We’ve

beendoingsomeveryinteresting

hydrogen

pilotinginAustralia

aswell

asinCanada.We

alsohave

somespecific

goalsfor

energysavings.InColombia,

we’re

investing

heavilyinfiberoptictoreplace

coppercabling;fiberopticsuseseven

timeslessenergythancoppertechnology.Soultimately,

that

isnow

clearlyhaving

animpactontheoverall

carbonfootprint.

We

now

have

that

fullyinplace.Andifyou

lookat

theretailside,

peoplearelookingfor

value.

They

always

have,

andtheyalways

will.Soit’s

importantthat

affordability

istaken

intoaccount.

Today,

we

provide

ourcustomers

anability

topurchasegreenenergy,

butgreenenergyisat

a

premium.Thebiggestquestion

willbe:what

arepeoplewillingtopayinordertoensurethat

we’re

able

tocontinuetobuildoutourinfrastructuretosupportthat?

We’ve

invested

insomesolarprojectsinAlberta

and,andsomerenewable

projectsinAustralia,

andyou’ll

seeuscontinue

toputfocusonthat

energy

transition.We

now

have

creditslinked

tosustainability

indicators,

oneof

whichisenergy

reduction.Currentlysome67%of

ourenergyisalreadyfromrenewable

sources

andclearlywe

have

tocontinue

inthat

vein.Andwe

treat

this

asabusinessissue.More

than

simplytelling

people

about

ourprogress,we

havearesponsiblebusiness

plan.

So,whenwetold

the

shareholders,wetoldthem

viaacomprehensivereport

aswe

wouldregardingother

businessissues.Not

everyinvestment

that

we’re

going

tomake

insustainability

willnecessarily

payoff,

andwe

recognize

that.Somearegoing

tobesuccessful;

othersaren’t.

We

make

surethat

we’readdressing

allof

thestakeholders.

We

haveto

be

pragmatic;we

havetohaveapragmatic

and

affordable

roadmap.

It

can’t

be

done

while

sacrificing

keyelements

like

safety,

reliability,

and

affordability

that

our

customers

rely

on.”It’s

a

process

of

continuous

improvement.

It’s

never

complete;

itdoesn’thave

anendpoint.

Instead,thingscomebacktousina

virtuouscircle.”MarshallWilmotFabiánHernándezPresident,

Retail

and

CDOATCOCEOMovistar

Colombia1011“We

are

committed

todeveloping

new

solutionswithESGaspects

andhelpingourclients

inthetransitiontoa

more

sustainable

portfoliofocused

onpromoting

renewable

energy,

sustainable

agriculture,andsocial

andinclusive

businesses.GuyCormier“Idreamof

theday

whenwe

willputasmuchattention

andimportance

onthequarterly

ESGcriteriaandthequarterlyenvironmental

resultsaswe

dofor

earnings

andGDP.”Chair

of

the

Board,

President,and

CEO

of

Desjardins

GroupWithin

thescope

of

ouractivities,

we

have

been

working

tomigrateourenergy

matrix

torenewable

energy

sources.

We

alreadyconsumeenergygeneratedbysolarplantsandourgoalistoreach90%inthesupplyofenergyfromrenewablesources.We

believethatsustainabilitybringsbusinessbenefits.We

haveoneofthelargestportfoliosofsustainablebusinessesintheNationalFinancialSystem,withgrowthof19.1%in12months,whichcorrespondsto37.1%ofthetotalclassifiedloanportfoliooftheBancodoBrasil.Ourperformance

inagribusiness

isincreasinglystrong,

witha54%share

of

theBrazilianmarket.

Halfof

ouragribusinessportfoliocomprises

sustainable

credit

lines,

withincentives

for

low-carbonagriculture

andno-till,

amongothers.“Insomecases,

you

have

totake

a

leapof

faith.

In

somecases,youhaveto

do

things

that

maybearen’tgoingto

pay

off

intwoyears,but

instead

in

five

or

10years.”AndyKatz-MayfieldWe

are

convinced

that

through

sustainable

business

itispossibletocombine

profitability

withthegeneration

of

value

for

customers,society

andtheenvironment.”Cofounder

andCEO

of

Harry’sFaustoRibieroCEOBanco

do

Brasil1213It’s

time

to

movebeyond

ambitionto

actionIBM

Institute

forBusiness

ValueOnekey

themeappeared

inall

of

ourCEOinterviews—theseleadersandtheirorganizations

have

moved

from

ambitiontoaction.Goodintentionsare

notenough,andtheseexecutives

arecommitted

to

makingsustainabilitya

reality.

Findoutmore

abouttheirapproaches,

explore

thefour

distinct

CEOgroups

thatemerged

from

ourresearch,

andfindactionguides

inourreport:“Own

your

impact:Practical

pathways

to

transformationalsustainability.”For

two

decades,

the

IBM

Institute

for

Business

Value

has

servedas

the

thought

leadership

think

tank

for

IBM.

What

inspires

us

isproducing

research-backed,

technology-informed

strategic

insightsthat

help

leaders

make

smarter

business

decisions.From

our

unique

position

at

the

intersection

of

business,

technology,and

society,

we

survey,

interview,

and

engage

with

thousands

ofexecutives,

consumers,

and

experts

each

year,

synthesizing

theirperspectives

into

credible,

inspiring,

and

actionable

insights.To

stay

connected

and

informed,

sign

up

to

receive

IBV’s

emailnewsletter

at

/ibv.

You

can

also

follow

@IBMIBV

on

Twitteror

find

us

on

LinkedIn

at

https://ibm.co/ibv-linkedin.The

rightpartner

for

achanging

worldAt

IBM,

we

collaborate

with

our

clients,

bringing

together

businessinsight,

advanced

research,

and

technology

to

give

them

a

distinctadvantage

in

today’s

rapidly

changing

environment.Notes

andsources12/article/world/climate-change/cop26-climate-change-summit-top-quotes-7602912/“Ownyourimpact:Practicalpathwaystotransformationalsustainability.”IBMInstituteforBusinessValue./thought-leader-ship/institute-business-value/en-us/c-suite-study/ceo3Ibid.1415?

Copyright

IBM

Corporation

2023IBM

CorporationNew

Orchard

RoadArmonk,

NY

10504Produced

in

the

United

States

of

America

|

January

2023IBM,

the

IBM

logo,

and

Watson

are

trademarks

ofInternational

Business

Machines

Corp.,

registered

in

manyjurisdictions

worldwide.

Other

product

and

service

namesmight

be

trademarks

of

IBM

or

other

companies.

A

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IBM

trademarks

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