Sustainable leadership: Putting people & planet first

Google has set an ambitious goal to reach net-zero emissions across all its operations and value chain by 2030. Similarly, Microsoft made strong commitments in 2020 to become carbon negative, water positive, and a zero-waste company while protecting ecosystems—all by 2030. As more organisations recognise the need to balance purpose with profit, senior leaders play a crucial role in promoting sustainable practices, particularly focusing on environmental, social, and governance (ESG) principles.

“Sustainable leadership means any leader’s action that strikes the ideal balance between corporate success and the welfare of their environment and human resources. It is essential not only to motivate your teammates but it is also as important what positive impact you make through your decisions at the workplace, on colleagues, and the environment. The goal is to create sustainable positive changes that benefit business profits and the human capital of the organisation,” said Prof Mahadeo Jaiswal, Director, IIM Sambalpur.

For Sachin Alug, CEO, NLB Services, effective leadership has often demonstrated that the pursuit of profit doesn’t necessarily have to compromise on the commitment to social responsibility and sustainability. Balancing profit and purpose comes with concerted efforts to make corporate social responsibility a core value.

Today’s customers, employees, and investors want businesses to do more than just make profits; they expect companies to contribute positively to society and the environment. A study found that nearly 80% of consumers change their buying decisions based on a product’s social responsibility, inclusiveness, or environmental impact. This growing awareness has made sustainable leadership pivotal for businesses. For example, many customers now choose hotels that adopt green practices like green roofs, recycling, smart showers, solar power, and waste diversion.

Srikanth Iyengar CEO, upGrad Enterprise believes balancing profit with sustainability and social responsibility is a long-term endeavour that demands careful, sometimes difficult, choices. “In the short term, this may require substantial transformations—redefining talent acquisition, product design, pricing models, and communication strategies. While this shift can be complex and involve significant change management, it ultimately enhances long-term enterprise value. Companies that prioritise sustainability build stronger, more meaningful connections with their customers and stakeholders,” he said.

Any organisation which effectively wants to integrate sustainability into business operations needs leaders, who can outline clear goals to measure progress. This includes regularly reporting on sustainability initiatives, their impacts, and areas needing improvement. Transparent reporting builds trust with stakeholders and ensures accountability within the organisation. Leaders should also create a culture that values and promotes sustainability at every level. This can be done through training programmes, employee engagement activities, and leading by example.

“Leaders can prioritise sustainable practices, such as reducing waste and emissions, while also pursuing innovative solutions that drive profitability. By embedding social responsibility into the company’s mission, leaders foster a culture of ethical behaviour and community engagement, which can enhance brand reputation and customer loyalty. Transparent reporting on both financial performance and sustainability efforts ensures accountability and builds trust with stakeholders. Ultimately, by demonstrating that profit and purpose can coexist, leaders create a business model that not only drives economic success but also contributes positively to society and the environment,” said Cdr. (Dr) Anil Rana, Director, MIT, Manipal.