Leading the Sustainable Business Transformation

Complete playbook to plan, execute, and showcase corporate sustainability initiatives

Based on extensive research conducted in the past several years at the International Institute for Management Development in Switzerland (IMD), Leading the Sustainable Business Transformation: A Playbook from IMD helps readers understand why sustainability matters, what it involves, how it fits with corporate strategy and how to implement it according to the specifics of their companies. This playbook emphasises both strategic and organisational work, delivering a framework to generate solid financial returns without depleting the world’s natural and social wealth.

With detailed case studies and quotations from executives to provide context, this book explores topics including:

• How social and environmental sustainability initiatives sharply differ from the much-criticised Environmental, Social, and Governance (ESG) framework
• Barriers to change based on gaps in organisational capacity and how to overcome them
• Minimising risks, accelerating change and fostering innovation through AI powered by Big Data
• Managing performance and measuring impact through new KPIs that utilise relevant metrics
• Marketing strategies to showcase sustainability efforts in a way that resonates with consumers

Filled with actionable strategies to navigate the intersection of global impact and financial success with precision and purpose, Leading the Sustainable Business Transformation is an essential read for executives and business leaders seeking to transform their organisations for the better.

Foreword by Michel Demaré and David Bach ix

Preface xiii

Part I Framing the Conversation 1

Chapter 1 Defining Sustainability 9

Chapter 2 Why Now? 19

Chapter 3 Seizing Opportunities Rather Than Managing Risks 33

Chapter 4 The Geopolitical Context 47

Part II The Strategic Imperative 59

Chapter 5 Roadmapping with a Future- Back Approach 63

Chapter 6 Scenario Planning 75

Chapter 7 Innovating Toward New Business Models 87

Chapter 8 Models for Social Sustainability 101

Chapter 9 An End- to- End Perspective 113

Chapter 10 Brand Strategies 127

Chapter 11 Navigating Climate- Related Financial Risks 137

Chapter 12 Nonmarket Strategy 151

Chapter 13 Navigating the New Era of Sustainability Reporting 167

Chapter 14 The Paradox of Digital Technology 183

Chapter 15 Artificial Intelligence 195

Part III The Leadership Imperative 207

Chapter 16 Leading Change 213

Chapter 17 Managing Change in the Organization 225

Chapter 18 Leading Transformation 233

Chapter 19 Developing Leaders’ Capabilities 243

Chapter 20 The Courage of “Power With” 257

Chapter 21 Ecosystem Partnerships 271

Chapter 22 Changing Culture 281

Chapter 23 Improving Governance 291

Chapter 24 Family Business 305

Chapter 25 Leading for Inclusion 319

Chapter 26 Talking the Walk 331

Conclusion 345

Contributors 353

Index 367

Julia Binder is IMD Professor of Sustainable Innovation and Business Transformation. She is also a director at IMD’s Center for Sustainable and Inclusive Business. Her work has been published in the Journal of Business Venturing and the Academy of Management Review.

Knut Haanaes is IMD Professor of Strategy and the Lundin Chair Professor of Sustainability. He is involved with IMD’s partnership with the World Business Council for Sustainable Development. His work has been published in the Harvard Business Review.

In Leading the Sustainable Business Transformation: A Playbook from IMD, a team of veteran sustainability strategists and educators delivers an insightful discussion of why sustainability matters, what it involves, how it fits with corporate strategy, and how it can be implemented according to the specifics of your organization. The book emphasises strategic and organisational development, walking you through a framework that generates reliable financial returns without depleting the world’s social and natural wealth faster than it can be regenerated.

The authors offer detailed case studies and quotes from experienced and well-known executives, as well as explanations of how social and environmental sustainability initiatives differ significantly from the oft-criticised Environmental, Social, and Governance framework.

You’ll learn about how the most common barriers to change are founded in gaps in organisational capacity and discover specific strategies you can use immediately to help overcome them. You’ll also explore ways to minimise risks, accelerate change, and foster innovation using AI-driven techniques rooted in Big Data strategies.

Leading the Sustainable Business Transformation provides you with key strategies to help you manage performance and measure impact with new KPIs that utilise relevant metrics and leading indicators, as well as marketing strategies that showcase your new sustainability efforts in a way that resonates with consumers from a variety of demographics.

Perfect for managers, executives, directors, and other business leaders, Leading the Sustainable Business Transformation is packed with the actionable strategies you need to navigate the intersection of global impact and profitability with precision and purpose. It’s also a must-read for entrepreneurs, founders, and professionals who work with enterprises to help them craft their approach to 21st-century commerce.

A COMPREHENSIVE PLAYBOOK TO HELP YOU STRATEGIZE, LEAD AND EXECUTE A SUCCESSFUL SUSTAINABILITY TRANSFORMATION

Leading the Sustainable Business Transformation: A Playbook from IMD offers an eye-opening exploration of why sustainability matters and how to embed it into your enterprise’s core strategy. Featuring a unique framework, this playbook highlights the continuous interplay between strategy and leadership needed for real impact. Readers will learn how to drive profitability responsibly, balancing growth with a commitment to social and environmental sustainability.

Renowned sustainability strategists and professors Julia Binder and Knut Haanaes walk you through the strategic and organisational work you’ll need to do to realise substantial gains in sustainability without compromising commercial growth. In this edited volume, they bring together IMD’s foremost thought leaders, combining their collective expertise to deliver actionable insights for driving impactful and sustainable change. You’ll learn about common risks and barriers to change, as well as effective techniques to overcome those pitfalls and nurture innovation.

An essential resource for entrepreneurs, founders, managers, executives, directors, and other business leaders who want to keep their enterprises at the forefront of sustainable growth and commercial success, Leading the Sustainable Business Transformation is an invaluable read for anyone seeking actionable strategies for global impact and economic results.