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Need To Know:
How To Become A Sustainable Leader
October 2020
Clarke Murphy, CEO, Russell Reynolds Associates
2
Leadership for the Decade of Action
3
A turning point for business
Across the West, capitalism is not
working as well as it should. Jobs
are plentiful, but growth is
sluggish, inequality is too high,
and the environment is suffering.
Who, then, is going to ride to the
rescue? A growing number of
people think the answer is to call
on big business to help fix
economic and social problems.
- The Economist
4
Businesses are struggling
to rise to the occasion
believe integration
critical to business
success
believe business is
currently playing a
critical role
actually
integrating in
their operations
92%
48% 21%
Source: United Nations Global Compact / Accenture.
5
Not embedded in leadership culture or expectations
4% of role specifications demand
sustainability experience or mindsets
15% of role specifications
refer to sustainability
6
How can organizations make sustainability
core to the DNA of their leadership teams?
CEO and Board Member sustainability pioneers55
37%
63%
FEMALE
MALE
GENDER REGION
56%
29%
13%
3%
INDUSTRY
53%
19%
11%
8%
6%3%
EMEA
NORTH AMERICA
APAC
LATIN AMERICA
INDUSTRIAL
CONSUMER
FINANCIAL SERVICES
TECHNOLOGY
PROFESSIONAL SERVICES
HEALTHCARE
7
Sustainable leadership is within reach
THE BORN
BELIEVERS
THE
CONVINCED
THE
AWOKEN
45% 43% 12%
8
A blueprint for sustainable leadership
MULTI-LEVEL
SYSTEMS
THINKING
STAKEHOLDER
INCLUSION
LONG-TERM
ACTIVATION
DISRUPTIVE
INNOVATION
SUSTAINABLE
MINDSET
9
Sustainable Mindset
Mads Nipper, CEO of Grundfos
I am 100 per cent convinced that the
companies that don’t take a full
stakeholder approach—creating value
for all stakeholders, not just
shareholders—won’t be competitive
and won’t exist. The CEOs who don’t
take their companies on a more
sustainable path aren’t living up to their
professional obligations.
• A purpose-driven belief.
• Recognize that business is
intrinsically linked to its wider
societal and environmental context.
• Believe value is created by delivering
across commercial, societal and
environmental outcomes.
10
Mads Nipper
CEO, Grundfos
Multi-Level Systems
Thinking
▪ Realize that systemic challenges
cannot be solved by any one
company alone.
▪ Harness the organization’s interplay
with larger economic, societal and
environmental systems.
As Covid-19 disrupted supply chains,
Grundfos moved to leverage its untapped
cash reserves to pay suppliers on an earlier
schedule than previously agreed.
11
Denise Morrison
Independent Director, Visa;
Former CEO, Campbell’s Soup Company
Stakeholder Inclusion
▪ Seek to understand a wide range of
viewpoints – from employees,
customers, governments, investors
and local communities.
▪ Make decisions with all stakeholders
in mind.
▪ Create partnerships that increase
the impact of their organization.
To develop Campbell’s sustainability
strategy, Denise Morrison solicited input
from a wide range of customers, suppliers
and other stakeholders.
12
Farzanah Chowdhury
CEO, Green Delta Insurance
Disruptive Innovation
▪ Recognize that real progress requires
exponential change and business
model innovation.
▪ Challenge traditional approaches
and confidently steer into the
unknown.
▪ Make bold investments that test the
limits of what is possible.
Developed Nibedita, an insurance app that
empowers women in Bangladesh to make
purchasing decisions without the
involvement of their family.
13
Ilham Kadri
CEO and Chair of the Executive
Committee, Solvay
Long-term Activation
▪ Set audacious goals and rigorously
drive concerned action.
▪ Stay the course in the face of
setbacks.
▪ Make decisions that may be
unpopular with short-term
orientated stakeholders.
Solvay’s One Planet program aims to
increase the company’s proportion of
sustainable products and targets a 26%
reduction in greenhouse gases by 2030.
14
Embed sustainability across your leadership culture
SELECTION SUCCESSION REWARD DEVELOPMENT
15
Leadership for the Decade of Action
Download at RussellReynolds.com

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Clarke murphy how to become a sustainable leader

  • 1. Need To Know: How To Become A Sustainable Leader October 2020 Clarke Murphy, CEO, Russell Reynolds Associates
  • 2. 2 Leadership for the Decade of Action
  • 3. 3 A turning point for business Across the West, capitalism is not working as well as it should. Jobs are plentiful, but growth is sluggish, inequality is too high, and the environment is suffering. Who, then, is going to ride to the rescue? A growing number of people think the answer is to call on big business to help fix economic and social problems. - The Economist
  • 4. 4 Businesses are struggling to rise to the occasion believe integration critical to business success believe business is currently playing a critical role actually integrating in their operations 92% 48% 21% Source: United Nations Global Compact / Accenture.
  • 5. 5 Not embedded in leadership culture or expectations 4% of role specifications demand sustainability experience or mindsets 15% of role specifications refer to sustainability
  • 6. 6 How can organizations make sustainability core to the DNA of their leadership teams? CEO and Board Member sustainability pioneers55 37% 63% FEMALE MALE GENDER REGION 56% 29% 13% 3% INDUSTRY 53% 19% 11% 8% 6%3% EMEA NORTH AMERICA APAC LATIN AMERICA INDUSTRIAL CONSUMER FINANCIAL SERVICES TECHNOLOGY PROFESSIONAL SERVICES HEALTHCARE
  • 7. 7 Sustainable leadership is within reach THE BORN BELIEVERS THE CONVINCED THE AWOKEN 45% 43% 12%
  • 8. 8 A blueprint for sustainable leadership MULTI-LEVEL SYSTEMS THINKING STAKEHOLDER INCLUSION LONG-TERM ACTIVATION DISRUPTIVE INNOVATION SUSTAINABLE MINDSET
  • 9. 9 Sustainable Mindset Mads Nipper, CEO of Grundfos I am 100 per cent convinced that the companies that don’t take a full stakeholder approach—creating value for all stakeholders, not just shareholders—won’t be competitive and won’t exist. The CEOs who don’t take their companies on a more sustainable path aren’t living up to their professional obligations. • A purpose-driven belief. • Recognize that business is intrinsically linked to its wider societal and environmental context. • Believe value is created by delivering across commercial, societal and environmental outcomes.
  • 10. 10 Mads Nipper CEO, Grundfos Multi-Level Systems Thinking ▪ Realize that systemic challenges cannot be solved by any one company alone. ▪ Harness the organization’s interplay with larger economic, societal and environmental systems. As Covid-19 disrupted supply chains, Grundfos moved to leverage its untapped cash reserves to pay suppliers on an earlier schedule than previously agreed.
  • 11. 11 Denise Morrison Independent Director, Visa; Former CEO, Campbell’s Soup Company Stakeholder Inclusion ▪ Seek to understand a wide range of viewpoints – from employees, customers, governments, investors and local communities. ▪ Make decisions with all stakeholders in mind. ▪ Create partnerships that increase the impact of their organization. To develop Campbell’s sustainability strategy, Denise Morrison solicited input from a wide range of customers, suppliers and other stakeholders.
  • 12. 12 Farzanah Chowdhury CEO, Green Delta Insurance Disruptive Innovation ▪ Recognize that real progress requires exponential change and business model innovation. ▪ Challenge traditional approaches and confidently steer into the unknown. ▪ Make bold investments that test the limits of what is possible. Developed Nibedita, an insurance app that empowers women in Bangladesh to make purchasing decisions without the involvement of their family.
  • 13. 13 Ilham Kadri CEO and Chair of the Executive Committee, Solvay Long-term Activation ▪ Set audacious goals and rigorously drive concerned action. ▪ Stay the course in the face of setbacks. ▪ Make decisions that may be unpopular with short-term orientated stakeholders. Solvay’s One Planet program aims to increase the company’s proportion of sustainable products and targets a 26% reduction in greenhouse gases by 2030.
  • 14. 14 Embed sustainability across your leadership culture SELECTION SUCCESSION REWARD DEVELOPMENT
  • 15. 15 Leadership for the Decade of Action Download at RussellReynolds.com