79% of APAC CEOs see sustainability as growth driver - Gartner

A recent Gartner survey has revealed that 79% of CEOs in the Asia-Pacific (APAC) region view sustainability as a leading business growth opportunity for 2024. This regional percentage surpasses the global average, where 69% of CEOs see sustainability as critical to their business strategy. The survey highlights that sustainability not only remains a top business priority but has surpassed traditional metrics like productivity and efficiency.

The survey, conducted between July and December 2023, included over 400 CEOs and other senior executives from North America, Europe, APAC, Latin America, the Middle East, and South Africa, spanning various industries and company sizes. Kristin Moyer, Distinguished Vice President Analyst at Gartner, noted that CEOs are increasingly integrating environmental sustainability into their long-term strategies. She commented, "Despite much corporate greenwash, recent economic conditions could have triggered a reversion to environmental, social and governance (ESG) cynicism and a refocus on profit at all costs. However, the overall commitment of CEOs appears unwavering."

Gartner's survey indicated that the primary methods CEOs are employing to drive business growth through sustainability include sustainable products and services (33%), sustainable business practices (18%), stakeholder engagement (18%), and decarbonisation initiatives (18%). Digital investments and innovation, although essential, were ranked ninth at 8%.

Moyer stressed the importance of digital technology in achieving sustainability goals. She remarked, "Digital technology can accelerate progress toward sustainability goals, going beyond compliance to help enterprises reach targets, enable new business models and unleash revenue streams." Examples given include optimising wind turbines through the Internet of Things (IoT) and data analytics to reduce costs and greenhouse gas emissions, using AI and IoT to cut food loss and waste, and developing a circular economy marketplace to generate new revenue streams while reducing waste.

The survey also highlighted that 54% of CEOs reported their businesses being affected by changing weather patterns. Subsequently, 51% of these executives have either planned or already implemented operational changes in response. The most significant impact of changing weather patterns was noted in operating dynamics (30%), which includes logistics such as warehousing, timing, and routing of deliveries. Following this, relocations (14%) and advancements in automation, technology, and data (13%) were highlighted as key areas impacted by climate change.

Moyer emphasised that climate change is a reality that businesses must adapt to and that technology plays a crucial role in these adjustments, especially in supply chain dynamics. "CEOs see that climate change is causing weather pattern shifts that are directly impacting their business operations already," she said. "Those operations must be adapted, with technology playing a vital role in driving these changes, especially in the dynamics of supply chains."