In facing global challenges, the concept of leadership continues to evolve, including the crucial need for leaders who prioritize sustainability. The 2021 EY Global Institutional Investor Survey revealed, 74% of investors would shift investments from companies with poor sustainability performance.
This underscores the demand for leaders who are more aligned with sustainability principles. This approach plays a critical role in attracting investment and maintaining long-term business sustainability. But what exactly is ‘sustainable leadership’? Is it a new concept?
Sustainable leaders have characteristics that differ from traditional leaders, focusing on creating long-term value that goes beyond mere financial gain. These leaders are visionary, with the ability to envision a sustainable future, committed to ethical practices, and social responsibility. Their leadership understands that business prosperity can not be separated from the well-being of society and the environment.
Unserstanding Sustainable Leadership Model
The Sustainable Leadership Model by Visser and Courtice from the University of Cambridge highlights three key aspects: leader’s context, the leader’s characteristics, and the actions taken by a leader. Furthermore, this understanding enables leaders to navigate the complexities of today’s sustainability challenges.
One figure who embodies sustainability leadership is Claus Aagaard, Chief Financial Officer (CFO) of MARS. His leadership is not only reflected in his personal commitment but also manifests systemically within the company. Aagaard encompasses three goals for Sustainable Development Goals (SDGs): a healthy planet, taking care of people, and nourishing the world. Furthermore, we have a basic question: “What is Sustainable Leadership for, to impact people?”
The complexity of the responsibilities sustainable leaders can manage shows their significant impact. Moreover, organizations with sustainable leaders tend to be more innovative, adaptive, and resilient. They enjoy higher employee engagement, a strong reputation, and greater customer loyalty, all of which ultimately contribute to long-term profitability. Furthermore, sustainable leaders play a vital role in initiating and driving positive change across sectors.
True leaders today shape not only strong results but also meaningful legacies for people and the environment. Ultimately, organizations strive to lead with purpose and integrity. KTM Solutions empowers leaders to cultivate vision, empathy, and resilience through purposeful leadership development and strategic alignment.
