A new global survey reveals that executives across countries and industries are prioritizing sustainability as a key driver of innovation, competitive advantage, and long-term value creation, despite an uncertain geopolitical and economic climate.

The latest biannual Factum Global Business Sentiment Survey polled over 200 executives worldwide to gauge their outlook on international business and the strategic role of sustainability. 77% indicated that climate change, economic volatility, and geopolitics have actively encouraged them to incorporate sustainability into their plans.

This signals growing recognition that sustainability factors represent immense opportunities, not just risks, for forward-thinking leaders aiming to future-proof their organizations. Overall, 77% still have a positive view on global business as it relates to sustainability, a slight 1% increase from Factum Global’s last survey in March 2023.

“Sustainability is becoming integral to competitive strategy and global growth. Executives must continue to make these issues central to their business models and innovation roadmaps,” said Francisco Gomez, Founder & CEO, Factum Global.

Climate Change and ESG Trends Encourage Sustainability Focus

Most executives surveyed believe additional sustainability initiatives will positively impact their organization’s growth. Global megatrends like climate change, natural resource depletion, and responsible investing are seemingly driving more leaders to embed sustainability into their corporate strategies.

77% say recent climate, economic, and geopolitical shifts have spurred them to prioritize sustainability when expanding into international markets. With extreme weather events like wildfires and floods intensifying worldwide, business leaders recognize climate change poses material risks to global operations and supply chains.

Seeing competitors adopt strong ESG practices and carbon reduction plans is also persuading more executives to make sustainability central to remaining competitive. Leaders understand that organizations perceived as sustainable leaders will attract invaluable talent, investor capital, and customer wallet share.

Growth Plans Continue Despite Global Uncertainty

Though inflation, monetary tightening, conflicts, and other headaches persist, 81% of executives still plan to maintain or increase international activities in the next six months. This signals ongoing commitment to global expansion, especially into emerging markets like Southeast Asia and Latin America where development needs and environmental challenges loom large.

80% currently believe it is not too risky to trade internationally, an 8% increase that indicates sentiment is improving as companies adapt to volatility. And 88% continue to see international business as a value driver, up 2% from Factum Global’s Q1 2023 survey.

Key Survey Highlights

• 77% say climate, economic volatility, geopolitics encourage sustainability focus
• Most believe sustainability initiatives will positively impact growth
• Sustainability adoption by competitors seen as a growth driver
• 81% will continue or increase global activities in next 6 months
• 80% do not think it is currently too risky to trade internationally
• 88% believe international business is good for their organization

The latest Factum Global survey provides a timely pulse check on how business leaders across diverse markets are adapting strategic priorities amid volatility. As climate change accelerates and social inequality persist globally, sustainability is growing mandatory for resilient multinationals.

Turning Sustainability into Innovation and Long-Term Value

Progressive companies are turning sustainability challenges into opportunities to gain competitive edge. From supply chain transparency to eco-friendly products, leaders see sustainability driving differentiation, efficiency, and new revenue streams.

Those moving early to set audacious carbon reduction goals, optimize operations for energy efficiency, partner with ESG-focused investors, and more could gain a first-mover advantage in the race to woo climate-conscious talent and consumers worldwide.

Younger demographics like Millennials and Gen Z—for whom environmental and social issues are top priorities—are earning more purchasing and investing power. They will likely reward the most progressive brands and employers. Sustainability is becoming embedded into core business activities from product design to HR to customer experience.

More broadly, the upbeat sentiment revealed by Factum’s international survey indicates many executives remain confident in long-term growth, even amid near-term volatility. By proactively embedding sustainability into strategies now, leaders can future-proof their organizations to find new value in a climate-changed world.

Early movers on sustainability can turn global megatrends into tailwinds for innovation and growth. As stakeholder capitalism and ESG take hold, purpose-driven leaders have incredible opportunities to profit while moving society in a more just and environmentally regenerative direction.

To download a copy of the survey report, visit: https://factumglobal.com/survey-report-q32023/