Sustainable Leadership Summary

Leadership is no longer just about profit margins; it’s about creating a future where businesses thrive while making the world a better place.

1. Sustainable Leadership: A New Paradigm for Business

Sustainable leadership is reshaping the way businesses operate, moving beyond traditional profit-driven models to embrace long-term value creation for society and the environment. This approach integrates environmental, social, and governance (ESG) principles into core business strategies, ensuring that companies contribute positively to the world while remaining competitive. Leaders who adopt this mindset recognize that sustainability is not a trend but a necessity for survival in a rapidly changing world.

Lynn Good, CEO of Duke Energy, exemplifies this shift. After a coal ash spill in 2014, she led the company’s transition from coal dependency to renewable energy, balancing operational needs with environmental responsibility. Her leadership demonstrates how businesses can adapt to global challenges while maintaining their competitive edge. Similarly, João Paulo Brotto Gonçalves Ferreira of Natura &Co expanded the company’s sustainability ethos internationally, proving that sustainable practices can scale globally.

These leaders show that sustainable leadership is about more than risk management or reputation. It’s about identifying opportunities for growth in the face of global challenges. By embedding sustainability into their organizations, they’ve created cultures that prioritize long-term value over short-term gains, setting a new standard for leadership in the 21st century.

Examples

• Lynn Good’s transition of Duke Energy to renewable energy after an environmental crisis.
• João Paulo Ferreira’s global expansion of Natura &Co’s sustainability principles.
• Companies like Patagonia, which integrate sustainability into every aspect of their operations.

2. The Three Paths to Becoming a Sustainable Leader

Sustainable leaders often arrive at their roles through one of three paths: born believers, the convinced, or the awoken. Each path reflects a unique journey shaped by personal experiences, professional growth, or transformative events that inspire a commitment to sustainability.

Born believers, like Ilham Kadri of Solvay, often have a lifelong passion for environmental or social issues. Kadri’s upbringing in resource-scarce Casablanca instilled in her a deep appreciation for sustainability, which she carried into her leadership role. The convinced, on the other hand, develop their understanding of sustainability over time. They recognize its strategic importance and the interconnectedness of corporate decisions with societal and environmental impacts. Finally, the awoken experience a significant event that shifts their focus. Svein Tore Holsether of Yara International, for example, commissioned the world’s first emission-free container ship, inspired by the urgent need to address climate change.

These diverse paths highlight that anyone can become a sustainable leader, regardless of their starting point. What matters is the willingness to learn, adapt, and act on the principles of sustainability.

Examples

• Ilham Kadri’s journey from a resource-constrained childhood to leading Solvay.
• Svein Tore Holsether’s bold move to create an emission-free container ship.
• Leaders who shift focus after witnessing environmental disasters or social injustices.

3. The Four Attributes of Sustainable Leadership

Sustainable leaders share four key attributes: systems thinking, stakeholder inclusion, innovation, and long-term focus. These qualities enable them to navigate complex challenges and drive meaningful change in their organizations.

Systems thinking allows leaders to see the interconnectedness of their decisions with broader societal and environmental impacts. Stakeholder inclusion ensures that diverse voices are heard, fostering trust and collaboration. Innovation drives the development of new solutions to old problems, while a long-term focus prioritizes enduring value over immediate gains.

For example, Bernard Looney of BP demonstrates humility and openness to feedback, fostering a culture of learning and adaptability. This approach has helped BP navigate the transition to renewable energy. Similarly, Farzanah Chowdhury of Green Delta Insurance created financial products tailored for women, aligning business goals with social impact.

Examples

• Bernard Looney’s focus on learning and adaptability at BP.
• Farzanah Chowdhury’s gender-inclusive financial products at Green Delta Insurance.
• Companies like Tesla, which innovate to align business with sustainability goals.

4. The Role of Humility and Learning in Leadership

Humility and a high learning quotient (LQ) are essential traits for sustainable leaders. These qualities enable leaders to adapt to changing circumstances, embrace feedback, and continuously improve their strategies.

Bernard Looney exemplifies humility by actively seeking diverse perspectives and being open to criticism. This mindset fosters trust and collaboration, essential for driving sustainable transformation. Leaders with high LQ, like Svein Tore Holsether, display agility in responding to market trends and consumer preferences, ensuring their organizations remain relevant and impactful.

By cultivating humility and a commitment to learning, leaders can navigate the complexities of sustainability and inspire their teams to do the same.

Examples

• Bernard Looney’s openness to feedback at BP.
• Svein Tore Holsether’s adaptability in leading Yara International.
• Leaders who prioritize continuous learning and improvement.

5. Bridging the Gap Between Strategy and Action

One of the biggest challenges in sustainable leadership is aligning stated strategies with actual implementation. Many organizations struggle with a perception gap, where employees view sustainability initiatives as mere branding exercises.

To address this, leaders must ensure their actions are authentic and transparent. Farzanah Chowdhury’s work at Green Delta Insurance demonstrates how aligning business goals with social impact can drive real change. Similarly, Maersk’s evolving stance on LGBTQ rights shows how inclusive policies can transform organizational culture.

By bridging the gap between strategy and action, leaders can build trust and create lasting impact.

Examples

• Farzanah Chowdhury’s gender-inclusive initiatives at Green Delta Insurance.
• Maersk’s inclusive policies for LGBTQ employees.
• Companies that align sustainability goals with measurable outcomes.

6. The Rise of Sustainable Startups

Sustainable startups are redefining success by embedding environmental and social goals into their core missions. Unlike traditional companies, these businesses are built on sustainability from the ground up.

H2 Green Steel, for example, aims to produce fossil-free steel by 2024. Their innovative approach includes a unique onboarding process that fosters a deep connection with nature. This commitment to sustainability extends to their diverse and inclusive workforce, which drives innovation and creativity.

These startups demonstrate that sustainability is not just a goal but a foundation for growth and success.

Examples

• H2 Green Steel’s mission to produce fossil-free steel.
• Startups that prioritize sustainability in product development and operations.
• Companies that integrate environmental goals into their business models.

7. The Importance of Corporate Culture

A strong corporate culture is essential for driving sustainability. Leaders must embed their mission and values into every aspect of their organization, ensuring alignment across teams and departments.

Henrik Henriksson of H2 Green Steel emphasizes the importance of culture in scaling a sustainable business. By fostering a shared sense of purpose, he ensures that his team remains committed to the company’s goals. This approach is particularly important for startups, which face unique challenges as they grow.

A strong culture not only drives sustainability but also attracts and retains top talent.

Examples

• Henrik Henriksson’s focus on culture at H2 Green Steel.
• Companies that align their values with their operations.
• Organizations that prioritize employee engagement and purpose.

8. Collaboration as a Key to Success

Collaboration is essential for addressing large-scale sustainability challenges. Leaders must forge partnerships across industries and sectors to drive meaningful change.

The role of the Chief Sustainability Officer (CSO) is increasingly important in this context. CSOs work to integrate sustainability into business strategies and build partnerships that amplify impact. For example, companies like Unilever collaborate with suppliers and NGOs to promote sustainable practices throughout their supply chains.

By working together, businesses can achieve more than they could alone.

Examples

• Unilever’s partnerships with suppliers and NGOs.
• CSOs who drive collaboration across industries.
• Companies that prioritize collective action for sustainability.

9. The Future of Leadership

Sustainable leadership is not just a trend but the future of business. As global challenges continue to evolve, leaders must adapt and innovate to stay relevant.

The stories of leaders like Lynn Good, João Paulo Ferreira, and Henrik Henriksson show that sustainability is a pathway to growth and resilience. By embracing this approach, businesses can thrive while contributing to a better world.

The future belongs to leaders who prioritize long-term value and align their goals with the needs of society and the planet.

Examples

• Lynn Good’s transition to renewable energy at Duke Energy.
• João Paulo Ferreira’s global expansion of Natura &Co’s sustainability principles.
• Henrik Henriksson’s leadership at H2 Green Steel.

Takeaways

1. Embrace systems thinking to understand the interconnectedness of your decisions with societal and environmental impacts.
2. Foster a culture of learning and humility to adapt to changing circumstances and drive innovation.
3. Build authentic and transparent strategies that align business goals with measurable sustainability outcomes.