CEOs embrace sustainability as top growth driver in 2024

This has made companies rethink their long-term plans.

In a recent survey, 69% of CEOs worldwide have identified sustainability as their primary growth driver for the year, prompting a significant shift in corporate strategies towards environmental stewardship. 

Kristin Moyer, Distinguished VP Analyst at Gartner, said that sustainability is not just a trend but a reshaping of the flow of capital. 

"Investments in decarbonization, particularly in renewable energies like solar and wind, are on the rise. ESG-related mergers and acquisitions are also gaining traction, reflecting a broader shift towards sustainable capital investment,” she said.

Moyer highlighted the emergence of what she termed the "climate economy"—an economy characterised by cleanliness, digitalization, and circularity in resource usage. "CEOs are recognizing the economic potential of environmental sustainability," she stated. "They are increasingly investing in innovative sustainability products and services to capitalise on this growing market."

Comparing regional perspectives, Moyer noted a particularly strong commitment to sustainability among CEOs in the Asia Pacific region. "In Asia Pacific, 79% of CEOs view environmental sustainability as a strategic growth opportunity," Moyer pointed out. "This region benefits from significant green finance initiatives, robust renewable energy developments, and a regulatory environment that increasingly prioritises sustainability."

Addressing the role of digital technology, Moyer acknowledged both its challenges and opportunities in advancing sustainability goals. "Digital technologies, while contributing to resource extraction and energy consumption, also hold immense potential to enhance sustainability outcomes," she explained. "AI-enabled climate monitoring, IoT-driven efficiency improvements in transportation, and blockchain's role in supply chain transparency are pivotal in advancing sustainable practices."