Good morning. From searing heat waves to regulatory rollbacks, sustainability is a tough topic for global leaders. When asked, every CEO I talk to says that climate change is real. They acknowledge the need to address the societal and climate impacts of AI, draw on diverse pools of talent, build resilient supply chains, pay attractive wages and seek a higher purpose than just generating profits. Many don’t want to talk about it, and may be quietly relieved that the SEC has proposed rescinding 2024 climate-related disclosure rules as “overly burdensome” for companies.
But CEOs should pay attention to the conversations and research coming out at the Aspen Business & Society Summit this week. Many of the attendees here are leading sustainability efforts inside America’s largest companies, trying to tackle tough problems like climate change, income inequality, and the impact of AI. They are reframing their mission from moral imperatives to business imperatives like resilience, risk, recruitment and reinvention. Conversations here last year resulted in a shared effort among more than 20 attendees to create a framework for demonstrating the value of sustainability investments that was just published in HBR. A key takeaway: CSOs and CEOs need to speak the same language. Shift the sustainability conversation from compliance and carbon targets to capital allocation and cash flow, building a business case around cost, risk, revenue targets and potential profits.
