Are CEOs Stepping Up On Climate Leadership?

Plus: Introducing For(bes) The Culture 50: Champions

Welcome to another edition of CxO.

A lot of eyes will be on Glasgow this week and next as the UN Climate Change Conference of the Parties (COP26) gets underway. More than 30,000 people are coming together in an effort to limit global warming to no more than 1.5℃ this century. It’s tempting to feel jaded about the prospects for success. After all, this is the 26th such gathering in a world that’s getting hotter at a frightening pace. 

Two things give me hope. One is the fact that global coordination has yielded results in the past.  In 1989, the Montreal Protocol on Substances that Deplete the Ozone Layer came into effect. It’s now considered the most successful environmental treaty ever. That’s testament to both the power of policy coordination and innovation: Manufacturers were able to find a substitute for the ozone-destroying chlorofluorocarbons or CFCs being used in fridges and other products.

The second and more compelling reason for hope is the fact that the private sector has made this mission-critical to success. Marc Benioff of Salesforce just pledged $200 million for reforestation efforts and investments in climate entrepreneurship. Many other CEOs are not only doubling down on sustainability efforts, but also becoming more attuned to the need to adapt to the realities of climate change today. Will this usher in a new era of climate leadership? I hope so. We’ll certainly be tracking it more closely across every sector. As you’ll see from Accenture’s research below and discussions over the next two weeks, no industry is untouched by this issue.

Diane

Comings & Goings

Barclays CEO Jes Staley stepped down earlier today over his ties with the deceased sex offender and financier Jeffrey Epstein. Regulators in the U.K. had been investigating Staley's links to Epstein, which date back to his time at JPMorgan, since 2020. C.S. Venkatakrishnan, the bank's head of global markets, has stepped in to replace him.

Marc Rosen, the former president of Levi Strauss & Co, takes over as CEO of JCPenney today. The move comes less than a year after the embattled department store emerged from bankruptcy. Its interim CEO, Stanley Stashou, has been appointed executive chairman of the company’s board.

KFC has recruited Nick Chavez, a former Nintendo marketing executive, as its new CMO. Chavez succeeds Andrea Zahumensky, who led the brand for 14 years. His appointment is the latest crossover between video games and fast-food brands.

Leadership & Strategy

Efforts to address the gender pay gap may have focused more on optics than substantive change. A recent study from S&P Global found that female executives tend to be compensated with salaries close to the median for their role, while male executives have salaries that span a much wider range. In effect, women at the highest level can expect to see their compensation held at an inconspicuous “glass floor.”

In a likely bid to distance itself from a spate of bad press, Facebook has rebranded itself as “Meta,” emphasizing its newfound commitment to the ambiguous “metaverse,” which seeks to bridge the internet with social media and virtual reality. Public reception has been lukewarm.

By The Numbers

64%

The percentage of CEOs advancing carbon neutral business models.

With nearly half of business leaders reporting supply chain difficulties due to extreme weather events, more and more leaders are starting to take climate change seriously. “The physical risks that [CEOs] were expecting to see in 2025 or 2030 are happening now,” says Peter Lacy, Accenture’s global sustainability lead.

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