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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
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
current
listof
IBM
trademarks
is
available
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