What is the EU Taxonomy?
1 min
Level
In this article, we'll break down what the EU Taxonomy is, how it works, the criteria for sustainable activities, and its broader impact on businesses and financial markets.
ESG / CSR
Industries
MEASURE
ACT
COMFORM
5 examples of sustainable leadership
Level
“ What does it mean to lead a company today? For a growing number of executives, it means aligning business success with environmental protection, social equity, and ethical responsibility. That’s the essence of sustainable leadership, an approach that puts long-term impact at the centre of corporate decision-making. ”
Rather than treating sustainability as a separate function, sustainable leaders make it part of the core business strategy. It informs how companies innovate, manage risk, support their employees, and engage with the wider world. It’s a mindset that recognises business doesn’t operate in a vacuum, and that leadership means being accountable for more than just profit.
In this article, we’ll explore how this approach is playing out across different areas of business and the role of the C-suite in putting it into practice.
In this article, we’ll look at:
- How companies are driving environmental innovation, from renewables to waste reduction
- The role of leadership in shaping social responsibility, inclusion, and community engagement
- Why governance and ethics are critical for long-term trust and resilience
- What transformative sustainability looks like and who’s leading the way
- How ESG principles are being embedded into corporate strategy across sectors
1. Driving environmental innovation from the top
The companies making the boldest environmental strides tend to have one thing in common: leadership that’s personally invested. Whether it’s powering entire operations with renewables or rethinking product lifecycles, environmental action tends to accelerate when senior leaders get directly involved.
Leading by example
Senior executives have enormous influence over how environmental goals - especially those addressing climate change - are prioritised and how fast progress happens. Strong leadership skills are essential to champion sustainability in the C-suite, signaling that environmental performance isn’t just a side project. It becomes embedded in how the organisation allocates resources, evaluates risk, and defines success.
At this level, leadership means:
- Setting bold targets and holding the company accountable
- Aligning sustainability goals with core business objectives
- Empowering teams with the tools, funding, and authority to act
- Modelling commitment through personal involvement and public accountability
When these conditions are in place, real operational change becomes possible.
Take energy use. Switching to renewable energy is rarely a purely operational decision, it often involves capital investment, renegotiated contracts, and long-term strategic planning. When executives make that call, it ripples throughout the company.
Google
Google has been operating on 100% renewable electricity since 2017, and is now aiming for 24/7 carbon-free energy use – an ambitious goal that touches everything from procurement to real estate.
Apple
Apple powers all its offices, stores, and data centres with renewables, and is working with suppliers to follow suit, extending the impact beyond its direct operations.
Why this matters:
These aren’t symbolic moves. They reshape how the company consumes energy, what technologies it invests in, and how it’s perceived by investors, regulators, and consumers. Leadership at this level turns sustainability into an engine of innovation and long-term value creation.
Rethinking how products are made
True sustainability leaders challenge the status quo, which pushes companies to reconsider not only what they make, but how they make it. This often means questioning long-established methods, materials, and supply chains to find fundamentally better ways to deliver value with less impact on the natural environment.
In many industries, this requires a shift from incremental improvements toward systemic innovation. Leaders must be ready to rethink everything from product design to sourcing strategies, manufacturing processes, and logistics, transforming sustainability from a compliance issue into a core driver of sustainable business and economic growth, as well as differentiation.
Tesla, for example, didn’t just build electric cars – it forced legacy manufacturers to accelerate their EV programs and rework entrenched production processes. This shift is now pushing innovation not just in product design, but in sourcing, logistics, and energy use across the sector.
What sets sustainability leadership apart?
- A willingness to invest heavily in new infrastructure and technology, even when the payoff is long-term
- Close collaboration between sustainability teams and R&D to embed environmental goals in product development and business operations
- Clear accountability at the board and executive levels to ensure sustainability is a strategic priority, not an afterthought
By embracing these practices, companies don’t just reduce their environmental footprint; they position themselves as pioneers in a rapidly evolving market.
Tackling waste at scale
Companies in consumer goods face a different challenge: packaging, materials, and waste. Tackling these environmental issues means rethinking how products are designed, delivered, and disposed of.
Unilever and Procter & Gamble have taken this on with ambitious waste reduction programs. Sustainable practices include:
- Cutting single-use plastics
- Increasing recycled content in packaging
- Piloting refillable and reusable product lines
- Embedding circular economy principles throughout their operations
These initiatives don’t happen by chance. They are driven by clear priorities and dedicated resources at the highest level of leadership.
Sustainability as a core strategy
For certain companies, sustainability isn’t just one part of the business; it defines the entire model.
Consider the outdoor brand, Patagonia. Environmental responsibility is woven into every decision, reflecting a clear sustainability vision that guides the company’s actions, from how materials are sourced to how stores are designed and even to the company’s outspoken activism. Here, leaders don’t simply sign off on sustainability policies; they drive them personally, blending purpose with profit in a way that feels authentic and deeply committed.
The takeaway:
“ When environmental action is championed at the highest level, it doesn’t just result in a few green initiatives. It reshapes company culture, operations, and long-term value. ”
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2 - Championing social responsibility
True sustainable leadership means putting corporate social responsibility (CSR) front and centre. At the highest levels, C-suite executives shape how companies address social equity, employee welfare, and community impact, proving that long-term business success and societal good can go hand in hand.
Building inclusive workplaces
Creating a diverse and inclusive culture starts with leadership development. Satya Nadella, CEO of Microsoft, is a prime example of a leader who has made inclusion a core value, setting an example for aspiring leaders looking to make a positive impact. This leadership style involves:
Adopting hiring practices that actively promote diversity
Cultivating environments where all employees feel valued and supported
Offering training and development programs that empower underrepresented groups
Policies like this don’t just improve morale, they also help companies attract and retain a wider pool of talent, which fuels innovation and productivity.
Prioritising employee welfare
Social responsibility also means investing in the people who make the company run. Comprehensive health benefits, mental health resources, flexible work arrangements, and support for a healthy work-life balance are becoming essential, not optional. When leadership prioritises employee well-being, it creates a positive work environment where people can thrive, leading to lower turnover and stronger performance.
Engaging with communities
Leadership also means recognising a company’s role within the broader community. Starbucks, for example, has long championed local engagement through:
- Hiring initiatives that prioritise community members
- Supporting local nonprofits, community initiatives, and social projects
- Partnering with small businesses
Taking a stand on bigger issues
Increasingly, CEOs are stepping up as advocates for societal change. Whether it’s through corporate philanthropy, donating to social causes, or publicly supporting human rights, climate change, and environmental justice, top executives are using their influence to push for broader impact and drive a sustainable business.
Why this matters:
“ When social responsibility is championed at the top, it ripples throughout the organisation and beyond. The result? Happier employees, stronger community ties, and customers who feel good about supporting a brand that stands for more than just business. ”
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3 - Governance and ethical leadership
Governance may not grab headlines like bold climate targets or flashy social campaigns, but it’s where real credibility is built. Ethical leadership at the top sets the tone for how a company behaves, communicates, and earns trust over time.
Setting the standard for transparency
When executives adopt ethical business practices, especially in financial reporting and investor communications, it builds a foundation of trust that numbers alone can’t achieve. Transparent reporting, honest disclosures, and integrity in decision-making reassure investors that the business is stable and accountable.
Ethics that extend beyond compliance
Some companies go further, using ethical norms to guide not just what decisions are made, but how. Take Johnson & Johnson, for example: the company has embedded ethical leadership and stakeholder accountability across its global operations. Its Credo (a corporate values statement first written in 1943) continues to guide decision-making by placing patients, employees, and communities ahead of shareholder returns.
This philosophy is reflected in how the company engages with stakeholders, from investing in equitable healthcare access to ensuring ethical sourcing in its supply chain. Regular stakeholder engagement, transparent governance practices, and independent board oversight all contribute to a long-standing reputation for integrity. It’s a model that demonstrates how responsible governance can drive trust, business resilience, and positive societal impact across borders.
This philosophy is reflected in how the company engages with stakeholders, from investing in equitable healthcare access to ensuring ethical sourcing in its supply chain. Regular stakeholder engagement, transparent governance practices, and independent board oversight all contribute to a long-standing reputation for integrity. It’s a model that demonstrates how responsible governance can drive trust, business resilience, and positive societal impact across borders.
Anti-corruption and corporate integrity
In sectors where reputational risk runs high, strong governance also means confronting unethical practices head-on. This might involve overhauling internal systems, tightening audit processes, or reshaping supply chain expectations. Whatever the approach, it has to be led from the top, with executives willing to challenge the status quo.
What responsible governance looks like in practice:
- Clear lines of accountability across departments
- Transparent investor communication and ESG reporting
- Strong internal controls to prevent corruption or misconduct
- Executive oversight of ethical risk and long-term impact
Investor expectations are evolving
Governance used to be a niche concern in investor relations - now, it’s central. Ethical risks, board accountability, and long-term resilience are under scrutiny in every pitch deck and annual report. A company’s stance on integrity can influence everything from capital access to shareholder loyalty to how well it weathers economic challenges. It’s no longer just about financial performance, but how those returns are achieved.
Why this matters
Strong governance and ethical leadership are increasingly recognised as a vital component of effective business management.
When executives demonstrate responsible business practices:
Investors gain confidence in the company’s long-term viability
Employees feel safer, more engaged, and aligned with the company’s values
Stakeholders trust that decisions are grounded in fairness and accountability
4. Leading through stakeholder engagement and collaboration
Sustainable leadership means recognising that no company operates in isolation, and that meaningful progress requires a holistic approach involving active engagement with a wide network of stakeholders.
“ Leaders who prioritise collaboration build bridges between their business and the communities, partners, and systems that shape long-term impact. This kind of transformational leadership inspires teams and partners alike to embrace shared goals and innovate beyond traditional boundaries. ”
This approach involves:
Two-way communication
Transparent dialogue with stakeholders to align goals and build trust
Leaders open communication channels with employees, customers, investors, and communities to surface concerns and co-create sustainability goals.
Cross-sector partnerships
Working across sectors to solve complex sustainability challenges
Collaboration with NGOs, governments, and competitors creates the scale and expertise needed to address global social and environmental issues.
Empowering supply chains
Supporting ethical sourcing and resource efficiency across value chains
Sustainable leadership enables suppliers to improve labour practices and resource use through joint standards and training.
Community engagement
Investing in and listening to local communities for long-term resilience
Supporting local initiatives while respecting cultural and indigenous rights strengthens trust and social equity.
Driving systemic change
Contributing to global standards, policy, and innovation platforms
By co-leading multi-stakeholder platforms and public-private partnerships, companies shape lasting change beyond their own operations.
Take The Body Shop as an example: the company has long embedded stakeholder engagement into its operating model, from pioneering community trade partnerships with small-scale producers to supporting local employment in the regions where it operates. Its ethical sourcing program prioritises fair wages and long-term supplier relationships, while its activism on social issues, from gender equality to human rights, reflects a business strategy grounded in broader societal impact.
Why this matters:
“ Sustainable challenges are interconnected and multifaceted. Leaders who embrace stakeholder collaboration multiply their impact by aligning incentives and pooling resources to drive meaningful social and environmental progress. This builds trust, mitigates risks, and unlocks new opportunities for innovation and growth, essential ingredients for long-term resilience and creating a sustainable future. ”
5. Using data, transparency, and accountability to drive progress
With increasing ESG scrutiny and rising stakeholder expectations, sustainable leadership requires rigorous measurement, open disclosure, and a commitment to accountability. Leaders who harness data and transparency create a culture where sustainability performance is both tracked and continuously improved.
Key elements of this approach include:
Robust metrics and KPIs
Defining clear, meaningful indicators aligned with global standards such as GRI, SASB, and TCFD ensures that sustainability efforts are comparable and credible. These metrics span environmental impacts like emissions and water use, social factors including workforce diversity and community engagement, and governance practices.
Digital tools and analytics
Leveraging technology to collect real-time data helps companies monitor their progress, optimise the use of natural resources, identify areas for improvement, and respond swiftly to emerging risks. Advanced analytics can also uncover opportunities for efficiency and innovation.
Transparent reporting
Leading companies openly share their sustainability performance, even when results fall short of targets. This honesty builds credibility with investors, customers, regulators, and employees, reinforcing trust and long-term relationships.
Accountability structures
Effective governance mechanisms assign responsibility for sustainability outcomes to specific teams and individuals. This often involves linking executive incentives and board oversight to ESG goals, ensuring sustained focus and drive.
Continuous improvement
Data insights are used not just for compliance but to inform strategic decisions and operational changes that deepen impact over time, requiring key skills like analytical thinking, adaptability, and strategic foresight to respond to evolving stakeholder demands.
Danone exemplifies this skills-based, data-driven leadership in action. Its “One Planet. One Health” strategy connects the health of people and the planet to the company’s business objectives and aligns closely with the Sustainable Development Goals. From regenerative agriculture and packaging innovation to improved nutrition and water stewardship, ESG priorities are embedded into every part of the business model. Crucially, ESG performance is also tied to executive compensation and investor reporting, reinforcing accountability at the top.
Why this matters:
“ Data and transparency transform sustainability from abstract ambition into significant progress. Companies that lead with measurable accountability are better positioned to anticipate disruptions, manage risks, and seize opportunities. This approach strengthens stakeholder confidence, enhances reputation, and builds the resilience needed to thrive in a complex global environment. ”
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What about Greenly?
At Greenly, we provide a comprehensive sustainability platform that empowers businesses to measure, manage, and reduce their carbon footprint while driving broader environmental improvements.
Our platform includes:
| What Greenly Offers | How It Helps |
|---|---|
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Automated carbon accounting
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Track emissions across Scope 1, 2, and 3 automatically with minimal manual input. Our platform simplifies data collection and categorisation, helping you stay on top of your carbon footprint across the full value chain. |
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Detailed reporting tools
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Easily generate reports that support compliance with global ESG frameworks and enhance internal and external transparency. Our tools help align with standards like the CSRD, GHG Protocol, and TCFD. |
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Tailored decarbonisation strategies
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Get actionable, data-driven plans that target your biggest emissions sources. Our experts work with you to develop realistic roadmaps that reduce impact while supporting growth. |
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Insights and recommendations
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Access practical guidance to improve energy and resource efficiency, reduce waste, and integrate sustainability into business operations. Built-in insights help you move from reporting to real progress. |
Whether you’re just starting your sustainability journey or aiming to sharpen your existing strategy, Greenly equips you with the data and tools to turn ambition into action and deliver meaningful results. Get in touch today to learn more.
Sources:
- Greenly, Climate change in 2022: where do we stand?
https://greenly.earth/en-gb/blog/ecology-news/climate-change-in-2022-where-do-we-stand?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - Greenly, What is renewable energy and why is it beneficial?
https://greenly.earth/en-gb/blog/company-guide/what-is-renewable-energy-and-why-is-it-beneficial?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - Google Data Centers, Operating sustainably
https://datacenters.google/operating-sustainably/ - Apple Newsroom, Apple advances supplier clean energy commitments (2023)
https://www.apple.com/newsroom/2023/09/apple-advances-supplier-clean-energy-commitments/ - Greenly, What is ecodesign?
https://greenly.earth/en-gb/blog/company-guide/what-is-ecodesign?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - Tesla, Sustainable products and manufacturing
https://www.tesla.com/blog/sustainable-products-and-manufacturing - Unilever, Sustainability: plastics
https://www.unilever.com/sustainability/plastics/ - PG Investor, Environmental overview and plastic packaging goals
https://www.pginvestor.com/esg/environmental/Environmental-Overview/default.aspx#plastic_packaging_goals - Patagonia, Environmental responsibility: materials
https://www.patagonia.com/environmental-responsibility-materials/ - Greenly, CSR meaning: all you need to know
https://greenly.earth/en-gb/blog/company-guide/csr-meaning-all-you-need-to-know?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - CNBC, The best CEOs for diversity according to Comparably employee reviews (2020)
https://www.cnbc.com/2020/07/20/the-best-ceos-for-diversity-according-to-comparably-employee-reviews.html - Starbucks, Communities: people impact
https://about.starbucks.com/stories/category/people-impact/communities/ - Greenly, Does transparency benefit or harm your company?
https://greenly.earth/en-us/blog/company-guide/does-transparency-benefit-or-harm-your-company?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - Johnson & Johnson, Our credo
https://www.jnj.com/our-credo - Greenly, What is ESG reporting and should you be doing it?
https://greenly.earth/en-gb/blog/company-guide/what-is-esg-reporting-and-should-you-be-doing-it - Greenly, Our guide to stakeholder management
https://greenly.earth/en-gb/blog/company-guide/our-guide-to-stakeholder-management?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - The Body Shop, Community fair trade
https://www.thebodyshop.com/pages/about/community-fair-trade - Greenly, The GRI (Global Reporting Initiative): how to implement it
https://greenly.earth/en-gb/blog/company-guide/the-gri-global-reporting-initiative-how-to-implement-it?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - Greenly, The Sustainability Accounting Standards Board (SASB)
https://greenly.earth/en-gb/blog/company-guide/the-sustainability-accounting-standards-board-sasb?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - Greenly, TCFD standards: all you need to know
https://greenly.earth/en-gb/blog/company-guide/tcfd-standards-all-you-need-to-know?utm_source=adwords&utm_medium=ppc&utm_campaign=1:%20SN%20|%202:%20Brand%20|%203:%20Search%20Brand%20google%20|%204:%20FR - Fan Milk Danone, One Planet One Health
https://fanmilk.danone.com/fr_ZA/one-planet-one-health.html
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