Sustainability Leadership in a New Era
How to lead courageously when sustainability is under attack
24th March 2025
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The uncertainty around ESG, fuelled by the US’ withdrawal from the Paris agreement and the proposed simplification of European regulation, is forcing some leaders to reevaluate their sustainability plans. Yet, with climate risks intensifying and consumer demand for responsible business remaining strong, future-proofing business strategy has never been more critical.
At The Economist Impact Sustainability Week event earlier this month, Anthesis hosted a workshop exploring what effective leadership looks like in this evolving landscape.
The session brought together a panel of experts to discuss how businesses can drive meaningful action, demonstrate value, and maintain their commitments without getting caught in political crossfire.
Reframing the narrative
One of the key takeaways from the workshop was the need for businesses to reframe their sustainability narrative. David Croft, Group Head of Sustainability at Reckitt, noted that “sustainability is not an inclusive language.” Instead of speaking in broad terms, companies need to be specific. For example, discussing water security can resonate more with stakeholders than the abstract concept of sustainability.
Croft shared an example from Reckitt’s operations in India, where their primary concern when building a factory was ensuring water availability in five years. By embedding sustainability into core business decision-making — rather than treating it as a regulatory requirement — companies can future-proof their operations. “If you’re only using legislation as an incentive, when that gets rolled back, sustainability initiatives get deprioritised. But if it’s properly embedded, those initiatives remain,” Croft explained.
Leading with conviction
Panellists agreed that the investor community is divided on ESG, but there remains a strong contingent of long-term investors who want businesses to remain viable decades into the future. “Many of our investors are pension funds. They want to know that the factory will still be there in 15 years,” Croft pointed out.
Vijaypal Bains Singh, Chief Sustainability Officer at Emirates National Bank of Dubai, highlighted that for financial institutions, sustainability is increasingly viewed as a profit centre — “but only if customers are interested in it,” he added. While corporate clients are showing strong interest, engaging consumers remains a challenge. “We need to make the financial rewards of sustainability more proximate so they are recognised on the balance sheet,” Singh added.
Several panellists underscored the importance of maintaining commitments, even as political rhetoric shifts. Dr Kamiar Mohaddes from ClimaTRACES Lab at the University of Cambridge warned: “If you row back on your commitments, you challenge your integrity. There can be a softening of language, but abandoning targets is not good for business or brand reputation.”
The business case for sustainability
Despite increasing politicisation, sustainability remains a crucial driver of long-term business resilience.
Dr Nirav Mandir, Head of Sustainability at SRK, highlighted historical evidence showing that businesses prioritising sustainability endure. “Since the Fortune 500 launched in 1955, around 10,000 companies have been listed, but only 49 companies have remained on the list for the full 70 years. These businesses have prioritised people, planet, profit, and purpose.” Longevity in business, he argued, requires a commitment to resilience.
The challenge for many businesses, as highlighted by Astrid de Reuver, Head of Capital Solutions at Anthesis, is funding the transition. “Our answer is radical collaboration. The problems are too big for any one company to tackle alone. Capital is the glue that holds sustainability efforts together, and we need to scale solutions across industries.”
Driving change in a shifting landscape
While some Western economies are experiencing a rollback of ESG commitments, other regions are scaling up investment, it was encouraging to note.
Singh pointed out that in the UAE, climate change is increasingly tangible. “It’s not just a political debate—temperatures have risen dramatically. People can’t go outside during summer. That’s why cleantech and renewables have taken off rapidly.”
He also noted a major shift in water sustainability in the region. “Three years ago, if you drank a glass of water in the UAE, it came from a desalination plant powered by fossil fuels. Now, it’s all run on renewable energy.” By focusing on real-world impacts, such as water security and energy transition, businesses can connect sustainability efforts to consumer priorities.
Mohaddes argued that the cost of inaction is often overlooked: “People often complain about the cost of sustainability being upfront, but that’s nothing new. It’s nothing different than what companies face all the time with capital expenditure. The real cost is in doing nothing.”
Meeting the moment with leadership
The panellists agreed that courageous leadership requires balancing long-term sustainability goals with short-term business pressures. That means embedding sustainability into strategy, communicating it effectively, and ensuring alignment with financial incentives.
There is no one-size-fits-all solution, but as Croft put it: “You can’t do everything, everywhere, all at once. But you need to have five key priorities of where your organisation can make the most impact – and make sure you’re executing them well.”
For business leaders, the challenge is clear: sustainability remains a strategic necessity, and those who integrate it effectively will build the most resilient, future-proofed companies. As the political and regulatory environment shifts, true leadership means staying the course and finding innovative ways to demonstrate value—without necessarily using the term ESG.
The message from the Economist Impact Sustainability Week workshop was resounding: sustainability is not just about compliance; it is about survival, growth, and long-term business success.
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