Divides & dividends 2023 - motivation divide
Divides and Dividends 2023
The Motivation Divide
96
%
of senior leaders think sustainability issues will impact the long-term viability of their business.
Yet only
21
%
cite greater profits as a top-five benefit of sustainability action.
Business leaders are making the
right noises around sustainability.
Yet beneath the surface, they still see sustainability as a brand-building exercise, rather than a true lever for business performance.
We call this...
The Motivation Divide.
Global evidence of the Motivation Divide
When we asked senior leaders about the top benefits of sustainability action, most cited a stronger brand reputation. Only a minority mentioned longer-term economic benefits, such as greater profits, lower-cost operations, or faster top-line growth.

A stronger brand reputation is the top cited benefit of sustainability action across all markets

How do you think your organization will benefit in the future from sustainability actions?

(% of senior leaders selecting as one of their top 5)

Global - Senior Leaders

Stronger brand reputation

69%

Better able to compete for and retain top talent

55%

More engaged and loyal employees

54%

Greater customer satisfaction/loyalty

53%

More future-proofed business/lower risk

48%

More efficient/lower-cost operations

26%

Better able to attract investors/cheaper borrowing

24%

Better able to weather economic uncertainty

22%

More resilient supply chain

21%

Greater profits

21%

Faster top-line growth

19%

How do you think your organization will benefit in the future from sustainability actions?

(% of senior leaders selecting as one of their top 5)

ANZ - Senior Leaders

Stronger brand reputation

84%

More engaged and loyal employees

67%

Greater customer satisfaction/loyalty

59%

Better able to compete for and retain top talent

49%

More future-proofed business/lower risk

49%

Better able to attract investors/cheaper borrowing

28%

Greater profits

26%

Better able to weather economic uncertainty

23%

Faster top-line growth

18%

More efficient/lower-cost operations

16%

More resilient supply chain

13%

How do you think your organization will benefit in the future from sustainability actions?

% of senior leaders selecting as one of their top 5)

France - Senior Leaders

Stronger brand reputation

68%

Better able to compete for and retain top talent

64%

Greater customer satisfaction/loyalty

60%

More engaged and loyal employees

58%

Better able to attract investors/cheaper borrowing

44%

More future-proofed business/lower risk

37%

More resilient supply chain

21%

Greater profits

21%

Better able to weather economic uncertainty

20%

Faster top-line growth

20%

More efficient/lower-cost operations

19%

How do you think your organization will benefit in the future from sustainability actions?

(% of senior leaders selecting as one of their top 5)

Germany - Senior Leaders

Stronger brand reputation

65%

Better able to compete for and retain top talent

62%

Greater customer satisfaction/loyalty

56%

More future-proofed business/lower risk

51%

More engaged and loyal employees

49%

Better able to attract investors/cheaper borrowing

40%

Greater profits

27%

More resilient supply chain

22%

Better able to weather economic uncertainty

20%

More efficient/lower-cost operations

18%

Faster top-line growth

18%

How do you think your organization will benefit in the future from sustainability actions?

(% of senior leaders selecting as one of their top 5)

Spain - Senior Leaders

Stronger brand reputation

72%

Greater customer satisfaction/loyalty

56%

More engaged and loyal employees

54%

Better able to attract investors/cheaper borrowing

51%

Better able to compete for and retain top talent

41%

More future-proofed business/lower risk

38%

Faster top-line growth

26%

Better able to weather economic uncertainty

21%

Greater profits

21%

More efficient/lower-cost operations

15%

More resilient supply chain

15%

How do you think your organization will benefit in the future from sustainability actions?

(% of senior leaders selecting as one of their top 5)

Sweden - Senior Leaders

Stronger brand reputation

65%

Better able to compete for and retain top talent

65%

More future-proofed business/lower risk

65%

More engaged and loyal employees

53%

Greater customer satisfaction/loyalty

53%

Greater profits

39%

Better able to attract investors/cheaper borrowing

35%

Faster top-line growth

22%

Better able to weather economic uncertainty

22%

More resilient supply chain

12%

More efficient/lower-cost operations

8%

How do you think your organization will benefit in the future from sustainability actions?

(% of senior leaders selecting as one of their top 5)

UK - Senior Leaders

Stronger brand reputation

69%

More engaged and loyal employees

58%

More future-proofed business/lower risk

54%

Greater customer satisfaction/loyalty

53%

Better able to compete for and retain top talent

51%

Better able to attract investors/cheaper borrowing

35%

Faster top-line growth

23%

Greater profits

20%

More resilient supply chain

19%

Better able to weather economic uncertainty

18%

More efficient/lower-cost operations

16%

How do you think your organization will benefit in the future from sustainability actions?

(% of senior leaders selecting as one of their top 5)

US - Senior Leaders

Stronger brand reputation

69%

Better able to compete for and retain top talent

55%

More engaged and loyal employees

55%

Greater customer satisfaction/loyalty

53%

More future-proofed business/lower risk

48%

More efficient/lower-cost operations

27%

Better able to weather economic uncertainty

23%

Better able to attract investors/cheaper borrowing

22%

More resilient supply chain

22%

Greater profits

21%

Faster top-line growth

19%

Source: RRA Divides & Dividends Survey 2023, N = 3,813 global senior leaders, not all countries and markets shown.

 

Why the Motivation Divide matters

 

If you only look at sustainability through the brand lens, you’re less likely to truly integrate it across the fabric of your organization—and, in the process, hamper its full potential to drive long-term success.

 

 

Senior leaders who see sustainability as an opportunity to create value for their business and communities are 1.4x more likely to report that sustainability progress has been made and will continue to be made.

Senior leaders who see sustainability as an opportunity to create value for their business and communities are 1.5x more likely to deeply integrate sustainability across decision-making.

Senior leaders who see sustainability as an opportunity to create value for their business and communities are 2x more likely to deeply integrate sustainability across daily work practices.

 

 

quote

Embracing sustainability as a lever for growth empowers leaders to unlock innovation, gain a competitive edge, and secure long-term success. It’s often the differentiator between talk and action.

Kurt Harrison, Leadership Advisor, Russell Reynolds Associates

 

 

2023 Survey            2021 Research Report           Download full report

 

How world-leading organizations are infusing sustainability across strategy

Sustainability trailblazers understand the importance of fully integrating sustainability across their organizations. Rather than treating it as an isolated initiative, they align sustainability to their overarching business strategy and goals, ensuring it guides everything they do.

 

Lynn Good

 

Lynn Good
CEO, Duke Energy

 

 

Lynn Good, CEO of Duke Energy, a major utilities company headquartered in North Carolina, has pushed sustainability to the heart of business strategy to deliver stand-out sustainability results. Every investment is now reviewed through the lens of how it positions the company to take on more renewables or reduce carbon emissions. Since 2010, Duke Energy has retired 56 units at coal-fired power plants. And as of 2021, it has decreased carbon dioxide emissions by 44%, sulfur dioxide emissions by 98%, and nitrogen oxides emissions by over 83%.

 

"Sustainability is not an adjunct; it’s not another initiative; it’s not something we keep track of on the side. Rather, it is completely integrated with the overall strategy of the company, which is to be a leader in the clean energy transition."

Source: Sustainable Leadership, Russell Reynolds Associates, 2021

 

 

 

 

 

 

 

 

 

 

rra-microsite-divide-and-dividends-purple-background-logo.png

Divides and Dividends | 2023 Report

Deliver stand-out sustainability success.

Discover other risks that may stop you from reaching your sustainability goals

 

It’s not enough to just commit to sustainability. To make a positive impact, you need to deeply integrate sustainability across your entire organization—from strategy and operations to daily decisions. Our research shows four gaps that, unless addressed, will prevent this from happening.

 

thumbnail-leadership-divide.jpg

CEOs often lack the vision and courage that’s needed to take risks, navigate complex trade-offs—and ultimately pivot their organizations toward a more sustainable future.

thumbnail-accountability-divide.jpg

In the rush to make visible commitments to sustainability organizations are forgetting to ensure their executive team is incentivized to make change happen—and stick.

thumbnail-mobilization-divide.jpg

Senior leaders are missing multiple opportunities to harness the collective potential of employees to accelerate sustainability transformation, at scale.

 

Connect with our sustainability experts behind this research