The geopolitical uncertainty brought by the Ukrainian war, the continuous disruption post-COVID, and the escalation of climate change effects have pushed business leaders to put a greater focus on their sustainability agendas, reports Safety4sea quoting the 12th UN Global Compact-Accenture CEO Study.
The study, released in early 2023, draws on insights from more than 2,600 CEOs across 128 countries and 18 industries, including the largest-ever sampling of executives from the Global South.
Notably, the report highlighted progress in the level of sustainability commitment of business leadership compared to 2021, because of the increased uncertainty. Business leaders now re-evaluate their investment criteria, cooperate with communities and develop innovative business models enabled by technology to drive change.
The current landscape on sustainability
Although a global awareness of the climate challenge has pushed significant progress, data show that the world seems to be off track to achieving the Sustainable Development Goals (SDGs), which were planned to be achieved by 2030.
For example, the landmark Paris Agreement sought to limit global temperature rise to 1.5° Celsius by the end of the century, but the latest UNFCCC data estimate that current climate pledges would put the world on track to reach 2.5° Celsius by 2100.
In addition, the latest Sustainable Development Goals Report 2022 showed that the climate crisis, the COVID-19 pandemic, and the geopolitical conflicts have placed the 17 SDGs in jeopardy.
Affected by global trends, the shipping industry is facing increasing pressure to improve its sustainability performance, which is characterized by a growing focus on emissions reduction, alternative fuels, environmental regulations, digitalization, and diversity challenges.
Business sustainability: Key challenges
The UNGC-Accenture study highlighted that CEOs are not only challenged by the multitude of problems they are facing, but also by the breadth of issues falling outside the traditional business sphere. According to the report, 93% of CEOs are experiencing 10 or more simultaneous challenges to their business. The top five include:
- Inflation and price volatility
- Talent scarcity
- Threats to public health
- Climate change
- Trade regulation
Moreover, 87% of the respondent CEOS feel that current levels of geopolitical instability limit the world’s ability to achieve the SDGs.
“Today’s leaders face a complex, interlinked world of risks. From rising inflation, economic uncertainty, and geopolitical tensions to the pandemic, the climate crisis, and cyberattacks, they are looking for solutions to help navigate an unprecedented period of uncertainty and build resilience,” Rob Fauber, President and CEO of Moody’s was quoted as saying in the report.
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Source: Safety4sea
