The Decade to Deliver: Service providers must take advantage of CEOs’ drive for sustainability 

Sustainable change must be nothing short of complete business re–engineering. It must happen at an industry level—with enterprises, governments, and all third–party sectors—and not be sidelined into LED lightbulbs and fluffy PR. A recent survey by the UN Global Compact and Accenture tracks how companies and their CEOs are shifting toward sustainability and the Global Goals, formerly the UN Sustainable Development Goals; the 2020s have been dubbed the self-explanatory “decade to deliver.” As we’ve highlighted in previous reports, this is a prime opportunity for service providers and technology vendors to build solutions and services that help their clients make this decade count. At a high level, they must embed sustainability in their existing services, sure up their partnership and co-creation strategies, and ultimately set up dedicated arms to be the front for their sustainability services prowess. 

Service providers can be the catalysts that turn CEO drive into sustainable transformation—revolutionizing economies and the global warming challenge 

If one thing’s clear, it’s that business leaders have a real desire to drive change. In the report, 71% of CEOs argued that they believe businesses can play a critical role in contributing to the Global Goals—but only with increased commitment and action. However, despite this desire, only 21% feel businesses are currently playing this critical role.  

In our candid conversations with enterprise executives, it’s apparent that there are simply too many other critical business considerations fogging up decision making. In many cases, they are fighting for survival, combatting disruptors and rivals with the constant trudge of cost-cutting and desire to open new revenue streams—a trend borne out in several HFS surveys in which cost and revenue weigh heavily on the minds of C-Level executives. Little surprise, then, that while many are keen to play their role, few see their businesses actually doing it. 

Leaders seem reluctant to make a meaningful investment, even with strong pull from customers. Only 28% of executives argue that a lack of pull from the global market is a top barrier to sustainable progress. Although market signals are confusing, in the face of the apparently strong market pull, only 40% and 25% saw sustainability as generating revenue growth and lowering costs, respectively.  

48% of CEOs are implementing sustainability in their operations 

Nevertheless, just under half of CEOs are already embarking on driving sustainability into their operations, with some recognizing the alignment between some sustainable practices and their crusade to lower costs, such as better energy efficiency in factories or data centers. To an extent, this crucial misalignment between traditional business metrics and sustainability goals is readily seen in the conflicted responses to the survey, which often show executives preferring to take small steps rather than the overhaul the UN deems necessary. Fifty-nine percent (59%) of CEOs said they were deploying low-carbon and renewable energy, in contrast to the 44% who see their companies reaching net-zero by 2030. 

Here lies the problem: 43% of CEOs cite competing strategic priorities as a barrier to sustainable business. Despite platitudes from executives to focus on all stakeholders, they are still beholden to shareholders. And with a third of CEOs citing limited investor buy-in to the benefits of sustainability initiatives and only 12% advising shareholder pressure as a sustainability motivation, it seems business leaders can hardly look to investors to support sweeping business evolution. 

The Bottom Line: The service provider community has a clear opportunity to bring its expertise and resources to help CEOs drive sustainable initiatives 

Whether it’s from public outcry, government regulation, or shifting consumer demand, the reality is that making sustainability a strategic imperative in business is mandatory. For providers, this means there’s a market ripe for the taking, whether that’s by embedding sustainability in their own services or setting up unique business lines to bring point solutions to market. In many cases, providers are uniquely positioned to bring business knowledge and outside-in thinking to help clients re–engineer their operations. 

In other ways, too, providers are uniquely positioned to cater to the market. Take, for example, the 55% of CEOs who say they’re competing with extreme short–term cost-consciousness holding back their sustainable initiatives. Service providers are all too familiar with the challenges and advantages that cost-conscious buyers bring, and they must help business leadership teams by adopting the following approach: 

• First, they must embed sustainability across their services and solutions, passing the benefits on to clients. In some instances, this will be to the cost of the provider, but this investment will drive a crucial shift in mindset among clients. 

• Second, they must adopt a partnership mindset, and, by doing so, become part of the sustainable journey with their clients, which opens opportunities for co-ideation and mutual investment in solutions. 
• Third, they must develop a business unit pitched specifically at sustainability challenges to ensure they are prepared for the flood of engagements that the “decade to deliver” is likely to bring.