It is undeniable that the corporate world is undergoing a radical transformation towards sustainability. However, for ESG (environmental, social, and governance) practices to have a real impact, companies need much more than well-structured Social and Environmental Reports or green marketing campaigns. Sustainability must be regarded as a survival strategy for both the company and the planet, not as a mere embellishment.

Here, I pose a challenge, as I believe that CEOs must assume an active leadership role by allocating adequate budgets, establishing robust processes, and forming specialized teams. Investing in sustainability means treating the issue with the same seriousness as any other strategic pillar of the business. The problem is that many companies allocate only 1% of their marketing budget to sustainability projects, mistakenly believing they are fostering a sustainable culture within their organizations. In reality, this reveals a flawed strategy aimed solely at improving the company’s image without yielding tangible practical results.

Without a robust budget, actions lack depth and effectiveness. CEOs need to understand that sustainability is not a cost but an investment—and an investment that, when well executed, brings significant returns in loyalty, customer retention, and resilience against climate and regulatory risks.

Genuine sustainability requires significant resources allocated to long-term initiatives that can generate real and lasting value. CEOs must understand that this investment is not a cost to be minimized but a strategic asset that strengthens the company’s resilience, builds trust, and protects against regulatory and climate risks.

In addition to budget, clear and well-defined processes are essential. Sustainability must be integrated into the company’s operations, not treated as a parallel project. This requires the establishment of solid governance, with clear goals, continuous audits, and systematic monitoring of actions. Structured processes allow the company to anticipate risks and opportunities, responding proactively and effectively. Without efficient governance, sustainable initiatives lose strength and focus, increasing the risk of crises that could be avoided through planning.

Implementing specific metrics to measure results beyond traditional financial indicators is essential to ensure that ESG actions generate measurable and relevant value for the company and its stakeholders.

Sustainability also depends on the people driving it. One of the biggest mistakes companies make is assigning this responsibility to employees who are already overburdened with multiple roles. For ESG practices to take root, it is crucial to have specialized teams dedicated exclusively to environmental management. CEOs must ensure that these teams have the autonomy and necessary resources to carry out their work and align strategic leadership with sustainable practices. When warnings and recommendations from specialized teams are ignored, the company becomes vulnerable to avoidable crises that could result in financial losses and irreparable competitive damage.

Sustainability is not merely a response to regulatory criteria or simply a marketing strategy. It must be viewed as a proactive and preventive measure that protects companies from the increasing risks of a changing world. Systematic rigorous audits and continuous monitoring are more effective and less costly than crisis remediation. CEOs need to lead with a long-term vision, allocating sufficient budgets, establishing clear processes, and forming teams prepared to face the environmental and social challenges the future holds.

The transition to a sustainable model is not without obstacles. Resistance to change is natural, especially when benefits are not immediately evident. Furthermore, the initial cost of implementing sustainable practices, such as adopting clean technologies and restructuring processes, may seem high. Pressure for profit and environmental impact is also a strategic concern, particularly in competitive markets. However, companies that embrace sustainability as an innovation opportunity become more attractive to investors, consumers, and partners.

Here, it is crucial to highlight another significant challenge: measuring the impact of sustainable initiatives. While financial results are easily tracked, areas like social inclusion and biodiversity require more complex analyses and produce results that are less tangible to the untrained eye. CEOs must develop recommendations to evaluate the impact of their actions, ensuring that positive results are visible and can be clearly communicated to all stakeholders.

Leading the application of ESG practices requires genuine commitment and strategic vision. Sustainability is not a passing trend but an urgent necessity to ensure companies’ survival in a constantly changing world. Organizations that integrate conscious leadership, well-defined processes, and specialized teams are more resilient, more competitive, and better equipped to meet future challenges.

The C-level in companies must answer this call and lead the transformation, taking responsibility for building a fairer and more sustainable future for their companies and society.

The question that remains is: Are you ready to lead this transformation?