With the U.N.’s conference in Baku, Azerbaijan, many business leaders are grappling with their role in the ecological transition. Uncertainty surrounding Donald Trump’s potential actions has further unsettled the sustainability sector, raising concerns about reduced support and the reversal of green tax incentives.
Despite advancements in technology, such as renewable energy and electric vehicles, a truly green future remains elusive. Global carbon emissions increased from 2022 to 2023, contradicting the necessary reductions to limit global warming to 1.5°C as agreed upon in Paris in 2015. The U.N. Secretary-General has warned of a trajectory towards significantly more severe climate change, with catastrophic consequences.
Sustainability requires more than technological innovation; it demands a fundamental shift in business leadership. This is where the Integrity-Driven Goals (IDGs) are relevant. The IDGs offer a framework for cultivating essential leadership qualities across five key areas: being, thinking, relating, collaborating, and acting, encompassing 23 crucial skills and attributes for sustainable leadership.
While the U.N.’s Sustainable Development Goals (SDGs) outline the objectives of sustainability, the IDGs focus on the methods. As the 2030 SDG deadline approaches, leaders must recognize that previously successful strategies—short-term thinking and competitiveness—can become significant obstacles. Addressing global challenges like climate change necessitates long-term collaboration with competitors, regulators, NGOs, and local communities.
Short-termism is often driven by shareholder pressure prioritizing immediate profits. Fund manager Terry Smith’s criticism of Unilever, for instance, highlights the prioritization of sustainability credentials over core business fundamentals. Similarly, while consumers express support for eco-friendly products, that preference often diminishes when faced with higher prices.
Sustainable leadership, guided by IDG principles, necessitates long-term vision, bold action, and a move beyond incremental change. This requires engagement with diverse stakeholders—environmental activists, community leaders, and employees. Volkswagen’s recent factory closure plans in Germany illustrate the potential conflict arising from such decisions. The green transition will involve difficult choices, and the IDGs can provide guidance.
General Motors’ CEO, Mary Barra’s commitment to an all-electric future by 2035, coupled with her support for Detroit nonprofits focused on worker retraining, demonstrates that sustainable leadership involves investing in both environmental and human capital.
Companies can integrate the IDGs into leadership development programs, as exemplified by Ikea and Google, fostering empathy, collaboration, and long-term thinking within their teams.
With climate change again at the forefront of the annual COP summit, business leaders must adopt the IDGs to build the necessary leadership for lasting change. Government support is crucial, through policies like carbon pricing and renewable energy subsidies. Consumers and investors also have a vital role, driving market changes through their support of sustainable businesses.
Collective action is essential to achieve sustainability goals before time runs out. Adopting the IDGs is a crucial first step.