The World Economic Forum emphasized that integrating sustainability into the core of business operations is now a prerequisite for growth, competitiveness and financial performance, not just a moral or regulatory obligation.
At the 2026 Annual Forum Meeting in Davos, CSOs discussed with CEOs and CFOs climate and nature strategies under the new geo-economic context, focusing on how these factors are integrated into decision-making, capital allocation, and the definition of success.
Sustainability as a strategic driver
Sustainability has to go beyond being a risk mitigation or periodic reporting tool, becoming an essential part of business models, supply chain planning, investment decisions, and performance measurement.
One of the most prominent tools discussed at Davos is sustainability-related finance, where companies that achieve predetermined KPIs benefit from better financing terms, including lower interest rates. This link between financial performance and environmental goals makes sustainability a variable board-level performance rather than a marginal function.
Sustainability and Business Performance
Sustainability succeeds when evaluated to the same standards as any other strategic investment. Sustainability initiatives must compete directly with growth projects, digital transformation, mergers and acquisitions. And so, performance indicators and financial viability must be clear, including costs, returns, risk reduction, and resilience benefits.
Predictive AI technologies also enable climate risk to be assessed and directly embedded in financial and operational decisions, turning climate risk exposure into a actionable financial signal, and enhancing asset stability and long-term competitiveness.
Transforming the role of sustainability officer
The role of the sustainability officer is no longer limited to setting vision and goals, but integrating sustainability into investment strategies and financial decision-making has become an essential leadership skill.
Digital technology, artificial intelligence, and Earth observation also play a vital role in transforming sustainability from simply managing risk to creating proactive value, including virtual reality simulation models, monitoring biodiversity, and coordinating supply chains.
Current CSOs Priorities
Sustainability officials are now focusing on:
Identify sustainability-related performance indicators more clearly and in line with financial value.
Develop benchmarks for biodiversity and natural capital to support markets and finance.
Foster collaboration between sustainability and finance functions to ensure sustainability is at the heart of business operations.
The Forum stressed that the challenge and opportunity of those responsible for sustainability today is not to convince the market of the importance of sustainability, but to actually implement it and integrate it into the heart of decision-making, capital distribution and measuring institutional success.
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