T H E 1 2 T “Institutional investors and other STAKEHOLDERS ARE HELPING DRIVE H U CEO of Mercedes-Benz, Ola Källenius, adds, both risks and opportunities. The financial N I stakeholders are now asking T SUSTAINABILITY TO THE TOP OF CEO “The investor has become one of my primary services industry is in a unique position to help E for reporting across the entire D N AGENDAS sustainability advocates. Without a credible companies address both of those things.” A T value chain. This wider reporting I O decarbonization plan, my stock may be affected, N footprint is changing how we As CEOs create their sustainability agenda, the S G which is a direct financial implication This increasing stakeholder support of L operate and view our business.” O stakeholders who influence their sustainability B — a powerful driver of change in businesses.” sustainability has served to de-risk sustainability, A Robert Bellisle, plans have shifted. Today, CEOs are increasingly L C enabling CEOs to feel more confident in investing O M President & Chief Executive Officer of QSL catering to customers and investors, demonstrating P Banks and insurers are also rising stakeholders in sustainability transformations. Shionogi & A Canada Inc. C how sustainability has evolved from a regulatory T when it comes to sustainability, from 6% of CEOs Co., Ltd.’s, Chief Executive Officer, Isao Teshirogi, - A C compliance issue to an opportunity to better engage C stating they were a top influencing stakeholder Ph.D., describes, “Rather than worrying about E N with key stakeholders. T in 2021 to 21% in 2022. Suni Harford, President the profit and loss statement for a single fiscal U R of Asset Management and UBS Group Executive year, we now have dialogue with investors about E C E “For the last three years, 60-70% of Customers remain at the top, with 68% of CEOs Board Lead for Sustainability and Impact, where things will be in three years or five years. O S my conversation with shareholders T stating that customers are the most impactful U shares, “Demand from our clients is such that Investors now agree on the need of planning for the D pertain to ESG.” stakeholder influencing their company’s sustainability sustainability is a business imperative, presenting long-term, rather than just this year or next year.” Y Peter Oosterveer, agenda. Marco Tronchetti Provera, Executive Arcadis NV’s Chief Executive Officer Vice Chairman and CEO of Pirelli & C. S.p.A., notes, “Competition used to be based on cost of performance. Now one of the key attributes FIGURE 5: CEOS FEEL THAT GOVERNMENTS MUST STEP UP AND WORK WITH THE PRIVATE customers are looking for is sustainability.” SECTOR – OVER HALF OF CEOS FEEL GOVERNMENTS WILL BE A TOP INFLUENCING “Distributed decision making is STAKEHOLDER IN THE NEXT HALF-DECADE a part of resilience that I think a Of all stakeholders, governments had the largest lot of people miss. You need to increase in their influence on the CEO sustainability talk to people, have town halls, agenda, nearly doubling since 2021 (31% in 2021 vs. CEO Survey Question: Which stakeholder group do you believe will have the greatest impact and make sure everyone is 52% in 2022). As governments increasingly adopt on the way you manage sustainability over the next five years? aligned on the message.” green policies, including incentives for renewables, Juan Luciano, infrastructure projects, and sustainability reporting Chairman & CEO of ADM guidelines, CEOs are feeling the pressure to transition % their businesses and work with government leaders Consumers | 68% to do so. Viviane Martins, CEO of Falconi, explains, “I believe governments can really stimulate resilience, 6% “Investment is necessary. And especially through innovation, if they work with Governments | 52% large investors – especially from business leaders.” 5% developed countries – care about ESG. Businesses in the developing Investors remain significantly influential as they 4% world, therefore, need to quickly increasingly engage in discussions on long-term adapt; otherwise we will not grow.” Investment Community | 34% growth and sustainability when making investment 3% Employees | 33% Natalia Cortez, decisions. In our 2021 study, CEOs felt that President of Calificadora de Riesgos investors had more influence on how they manage Boards | 22% Summaratings S.A. sustainability than ever before, nearly doubling 2% Banks and Insurers | 21% in just a five-year period (31% in 2021 vs. 18% in 2016). This trend has continued today, with 34% of 1% CEOs indicating that investors are a top influencing “We are going to see more tribalism stakeholder. Giovanni Caforio, MD, Chairman of the % in the future. We should learn from Board and Chief Executive Officer of Bristol Myers 2013 2016 2019 2021 2022 countries that have experienced Squibb, says, “There are more discussions today when that and were able to get different I speak to our shareholders about climate than there groups of people to be able to work have ever been before. And there are more vocal **Stakeholders that came in at less than 20% were excluded from the figure above. These stakeholder categories include: together for a common good.” Communities (20% in 2022), Suppliers (16% in 2022), Competitors (11% in 2022), the United Nations (10% in 2022), expectations from our employees as well.” NGOs and Media (7% in 2022), Family (4% in 2022), and Organized labor (2% in 2022). James Boomgard, President and CEO of DAI Global, LLC 36 37