Sustainability Needs More Than Technology. This Leadership Framework Might Be the Answer

As global attention has turned to Azerbaijan’s capital, Baku, for the U.N.’s ongoing COP29 climate summit, many business leaders are at a crossroads about how they can pitch in on the green transition. Adding to the uncertainty, Donald Trump’s election victory sent jitters through the sustainability sector, sparking fears he may dismantle support and roll back green tax credits.

Despite recent advances in renewable energy, carbon capture, and electric vehicles, to name just a few examples, a green future remains a distant dream. Global carbon emissions actually rose by 1.3% from 2022 to 2023, even as they should be falling to meet the 1.5°C temperature rise limit agreed to at the 2015 Paris climate talks. The U.N. Secretary General has warned the world is now on track to a 2.8°C temperature rise, which would drastically intensify natural disasters, raise sea levels, disrupt ecosystems and food supplies, and heighten health risks globally.

Clearly, achieving sustainability requires more than just technological innovations. The world must fundamentally transform the way businesses lead. This is where the Inner Development Goals (IDGs) come into play. The IDGs provide a framework to develop the personal qualities in five key dimensions that CEOs need to drive lasting change: being, thinking, relating, collaborating, and acting, along with 23 skills and qualities needed for sustainable leadership. 

While the UN’s Sustainable Development Goals (SDGs) define the “what” of sustainability, the IDGs focus on the “how.” And, as the 2030 deadline for the SDGs approaches, leaders need to recognize that the very skills that brought them success—short-term thinking and competitive drive—can become obstacles. That’s because addressing global challenges like climate change, biodiversity loss, and other systemic problems requires long-term cooperation with competitors, regulators, NGOs, and local communities.

There are many reasons for short-termism. Financial pressures driven by shareholders often push companies to prioritize immediate profits. Take, for example, the influential fund manager Terry Smith’s criticism of Unilever, which he says has “lost the plot,” with management focused on flaunting its sustainability credentials “at the expense of focusing on the fundamentals of the business.” At the same time, while consumers say they’re all for eco-friendly products when asked in surveys, that enthusiasm doesn’t always turn into real action. They often hesitate when green products cost more.  

Sustainability demands leaders embrace key IDG principles: leaders must think long-term, act boldly, and go beyond incremental changes. In doing so, however, they need to listen to diverse stakeholders—environmental activists, community leaders, and employees. Volkswagen’s recent plans for factory closures in Germany have sparked opposition from unions and politicians, as they put 296,000 workers at risk.  The road ahead for the auto industry—and other sectors navigating the green transition—will involve tough choices, and the IDGs can guide leaders through these challenges.  

The case of General Motors is another example. Its CEO Mary Barra has committed the carmaker to an all-electric future by 2035. At the same time, she pledged $50 million to Detroit nonprofits focused on workforce development and neighborhood revitalization, to get these potentially out-of-work employees retrained and in new jobs. In doing so, Barra is showing that sustainable leadership means investing in both the environment and people. 

To embody such leadership, companies can train executives in key IDG dimensions like empathy, collaboration, and long-term thinking. For example, Ikea has embedded the IDGs into its leadership development programs, and Google has focused on developing employees’ personal growth to support its sustainable practices. 

As climate change once again remains front and center during the annual COP summit, business leaders need to act now and adopt the IDGs to build the leadership needed for lasting change. But they can’t do it alone—governments must step up, passing policies like carbon pricing and renewable energy subsidies to help businesses make bold, sustainable choices. Consumers and investors also play a role: by supporting companies focused on sustainability, they drive the market in the right direction.  

It’s only through this collective action that the world can meet the sustainability goals before it’s too late. Time is running out, but adopting the IDGs is a first step.