Why Bain & Co Thinks CEOs Must Consider Sustainability

The sustainability narrative has experienced a notable transformation since 2018, moving through phases of heightened corporate enthusiasm to a period of strategic recalibration.

As organisations grapple with the practicalities of implementation, the conversation is shifting from aspirational pledges to actionable business strategies that drive commercial value.

According to Bain & Company, sustainability discussions reached their peak in CEO priority conversations during 2021–2022, before declining as the complexities of execution became apparent.

However, recent data suggests that this downward trend is now stabilising, with sustainability gradually re-emerging as a strategic priority.

Crucially, the debate is increasingly framed around practical implementation areas such as electric vehicles (EVs), net zero commitments and global supply chain transformation.

The evolution of corporate sustainability discourse reveals important insights for business leaders seeking growth opportunities.

Bain's analysis of more than 35,000 statements from 150 leading companies' CEOs across 2018, 2022 and 2024 uncovered a widening "do-say gap", demonstrating that executives are discussing sustainability less frequently, but continuing to integrate it into operations.

The data shows that in 2018, the majority of CEO commentary centred on compliance and societal benefit. Today's corporate leaders are pivoting towards business value creation, aligning sustainability with commercial imperatives and operational realities including:

• Costs
• Customers
• Commercial motions
• Capital investments

This transition reflects a broader strategic reframing where sustainability functions less as an isolated objective and more as a lens through which business performance and growth potential are evaluated.

"After the initial years of bold ambitions and target setting, CEOs took a reality check on their sustainability agenda last year," says Jean-Charles van den Branden, Senior Partner and Global Sustainability Practice Leader at Bain & Company in the company's 'Sustainability is not dead' press release.

"Today, CEOs might speak less about sustainability but what they lack in words, they make up in action, a phenomenon we call the 'do-say' gap.

"We have identified profitable decarbonisation levers ready for companies to power their net zero journey.

"To succeed, companies need to accelerate what already works, anticipate disruptions and build robustness.

"Our surveys find that more B2B buyers are sourcing for sustainable suppliers and B2C consumers care deeply about the issue and reward companies that make innovative, affordable and sustainable products.

"Another interesting observation this year is companies' rising use of AI to deliver sustainable impact. Those that act sustainably do so because there are tangible returns."

Industrial transformation driving commercial opportunity

The EV sector exemplifies how sustainability initiatives are evolving into significant industrial and commercial transformations.

The rapid scaling of battery technology in China, combined with declining costs and robust industrial policy, has accelerated EV adoption beyond initial market projections.

China's strategic focus on self-reliance and green development, partly motivated by air quality improvement, led Beijing to recognise electric mobility as essential to these objectives.

This prompted substantial research and development investments through the Made in China 2025 mandate.

National companies such as CATL and BYD scaled their operations rapidly in alignment with this policy, securing access to critical raw material supply and refining capacity. China now refines 70% of global battery-grade lithium and 90% of battery-grade graphite.

Supply chains have become central to this shift, with critical materials including lithium and graphite playing a defining role in competitive positioning.

China's dominance in refining battery-grade materials demonstrates how sustainability progress is intrinsically linked to control over upstream inputs and manufacturing scale, extending beyond end-use adoption.

Navigating supply chain complexity

Despite progress on direct emissions reduction, many organisations remain behind schedule on Scope 3 targets, which are predominantly influenced by supply chain activities.

This presents particular challenges in sectors connected to electrification and energy, where upstream suppliers are adjusting their own net zero expectations.

According to Bain's analysis of energy executives, a growing proportion now anticipate that net zero targets will be reached later than previously projected, creating potential tension between supplier timelines and customer ambitions.

The broader sustainability landscape is being shaped by diverging policy approaches, accelerating technologies and shifting customer expectations.

Some regions are moderating regulatory pressure, whilst others are deploying industrial policy to accelerate transition-focused sectors and secure strategic advantages.

Technologies such as batteries are approaching cost and scale inflection points, particularly in EV markets where adoption has been driven by falling costs and improved infrastructure.

In this environment, organisations are increasingly focused on managing uncertainty across supply chains whilst balancing ambition with execution reality.