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It is a cliché, but we live in interesting times, or to be more blunt, times where you need to take a firm stance on what you believe in. That is why I call it a political leadership. If you are a CEO or a senior leader, your climate (non)action is now inherently political, whether you like it or not. The choice is how you want to take a stand on climate change. As has been seen in recent weeks, many CEOs have chosen to acquiesce and roll back on sustainability and DEI initiatives. This isn't very pleasant.

The tectonics of global politics have undergone significant changes since the start of 2025, while the short- and medium-term trajectory of the world's climate continues to move in the wrong direction. Recent statistics indicate we are less likely to meet the agreed targets than we had hoped just a few years ago. Are we at a roadblock for fighting climate change, or is it merely a bump in the road? One would hope it is the latter, especially when considering some of the progress made over decades in how business has influenced and helped wider society.

If we go back to the Victorian era, we can see the roots of these supportive and caring industrial eco-systems. When the Cadbury family built Bourneville village to improve the lives of the company's workers, Henry Ford had a focus on reducing waste and pushed early environmental concerns. From the early to mid-20th century, we saw the role of what some labelled the 'good patriarch' CEO. From the post-World War II era to the present, a strand of philanthropic CEO leadership has emerged, focusing on giving back to society.

We began to see significant changes in the 2000s, when the term Corporate Social Responsibility (CSR) emerged as a distinct field in its own right. CEOs began integrating two objectives into one: profit and societal betterment, in what was referred to as 'the business case' for CSR, and companies started to account for their societal activities in CSR reports. This engaged many more companies in changing their role from being a business to being a business for society. The CEO, as the 'C ' strategist, merged with a focus on engaging in societal and environmental challenges closely linked to the delivery of profit. Whereas the CEO philanthropist focuses on how to allocate funds to social and environmental causes, the CSR strategist emphasizes that it is not how you spend your money, but how you earn it. The likes of Anita Roddick at The Body Shop and Jochen Zeitz at Puma were early pioneers in this regard.

2025, are we going backwards?
In 2025, we live in a world where a geopolitical shift can seem to occur overnight, from the time you go to bed to waking up the next morning. In the space of a few months, with the election of Donald Trump, green policies have been under attack. References to climate change have been removed from US government websites, and the man "ra "drill ba"y d""ill" has been front and centre. Coming from the world's second-largest polluter, this is deeply troubling. Even more concerning has been the speed at which numerous businesses, many of them multinationals, including tech companies, banks, and energy companies, have rolled back on green initiatives.

Some of the latest predictions have stopped discussing a 1.5°C warming threshold above pre-industrial levels and are now preparing the world for a temperature increase of 2°C or 2.5°C. And it is at this point that some businesses are withdrawing their climate change ambitions. It is a critical moment in history and a dangerous trajectory that needs to be more forcefully challenged. It is one of those points in time where you need to decide which side of history you are going to be on.

Alongside the attack on green policies, we have seen the eradication and dismantling of DEI policies. Before Trump, many companies were very vocal about the progress they were making in this area. And now, it seems there has been a broad volte-face. A notable example is how large US firms have withdrawn commitments to DEI in response to pressure from the current US administration. At the same time, research indicates that diversity fosters collaborative endeavors, enhances understanding of complexity, promotes innovative practices, and promotes greater equality. This knowledge needs to be championed and defended. Writing from here in Oxford, the UK, is not immune. In a recent survey by Occupational Health Assessment of over 140 UK employers, nearly 70% anticipated a retreat from DEI initiatives, influenced by trends in the United States.

The Rise of the Political CEO in the context of climate polarization. However, being a climate political leader means that CEOs must take a stance on the kind of leaders they want to be for the future of the world and people. Practically, this means that at the core of your business strategy, you have a plan for how your organization helps to improve the world's climate and society. In a way, it is straightforward. Where it becomes difficult is that it has become a political issue for businesses to support the improvement of the planet and its people.

Of course, it has not always been this way. Climate and nature were once considered non-political. The external business is accountable to governmental environmental regulations, while the internal corporation focuses on shareholder profit. The CEO operated in a business-centric universe, where society and the planet were regarded as a source of growth, exploitation, and income. That is a historic approach that brought many businesses to the wealth they possess today. However, it is not fit for today's world.

Being more political is not easy for a CEO, far from it. While recent innovations have demonstrated that it makes good business sense to invest in clean energy, there is, and probably always will be, an inherent tension between economic interests and environmental policies. Some industries (e.g., fossil fuels) see climate policies as a threat to profits, leading to resistance from business-aligned political groups. Secondly, there are increasing ideological differences. While both sides of the political spectrum are interested in mitigating climate issues and protecting the environment, conservatives often prioritize free markets and minimal government intervention. In contrast, liberals typically advocate for regulation and climate action as a moral responsibility. Finally, there are powerful lobbying groups that, at worst, promote misinformation, spreading skepticism and downplaying climate change to delay policy changes, and further fueling political polarization.

The advantages of CEOs taking a more political stance
However, taking a more political stance on issues that are important to consumers and employees makes commercial sense. Modern consumers, especially younger generations, prefer brands that align with their values. The IPSOS Global Trends 2021 survey revealed that combatting climate change and defending social issues were two of the top expectations that consumers have of business; conducted across twenty-five countries, two-thirds (63%) of respondents relayed that it was more important to them that companies do their best to fight climate change than that they pay the right amount of tax. We see similar trends among employees. Research conducted by Gartner in 2021 showed that three-quarters (75%) of employees expect their employer to take a stance on current societal or cultural issues, even if those issues do not directly affect their business.

Second, businesses have the power to drive social change. Corporations shape every moment of our daily lives, influencing millions of customers, employees, and investors worldwide through goods, services, and jobs. History shows us good examples. In the 1980s, large companies like General Motors, IBM, Coca-Cola, and Barclays Bank pulled out of South Africa due to shareholder activism and consumer boycotts against apartheid. Today, CEOs can identify new market opportunities in a world that demands more environmentally friendly products and processes. As a CEO of a company, you have the power to bring important issues, such as climate change, diversity, and human rights, into mainstream conversation. The key question is, how do you want to use that power?

Third, while governments, of course, have an essential role to play in shaping public policy, business leaders also have the resources, influence, and lobbying power to influence societal norms and push for policy change. Lastly, those companies that take a stand can attract loyal customers who identify with and support their values, building brand loyalty and differentiation. Patagonia, the US outdoor clothing company, is a well-known example of a brand built around a long-term commitment to sustainability and the environment.

The disadvantages of CEOs taking a more political stance
There are, of course, flip sides. Taking a political stance carries the risk of alienating some customers and investors. One only has to look at Tesla to see this. Investors may withdraw if they perceive activism as a distraction from financial performance. For example, in 2023, Bud Light faced significant consumer backlash after a promotional campaign featuring transgender influencer Dylan Mulvaney. This led to a drop in revenue, with sales volume declining by 30%, and the company struggling to recover. Context matters, and the CEO must be prepared to meet the challenging responses that come with taking a stance.

As with external audiences, a political stance can cause divisions amongst employees. In any large organization, you will have individuals who hold a diverse range of political views. CEO activism can create tension in the workplace, where some employees may hold diverse political views. As a result, CEO activism can lead to pressure on employees to align with the company's position if they disagree with it. Businesses, unlike governments, are not democracies. CEOs are not elected to represent the public, and their opinions may not reflect the broader population. But if political engagement overshadows business operations, it can hurt long-term economic success.

Since the start of the year, we have seen companies and foundations water down their climate commitments. Walmart removed content from its website that stated it was "deeply committed" to addressing climate change, and "Kraft H" has amended its Net Zero and Science-Based Targets webpage, deleting a reference to a target to cut emissions by 50 percent by 2030.

At the same time, some initiatives are making significant contributions to combating climate change. A good example is the We Mean Business Coalition, a global nonprofit alliance that mobilizes and amplifies the power of business to accelerate climate ambition, action, advocacy, and accountability. Reassuringly, a recent poll, 'Powering up: Business perspectives on shifting to renewable electricity,' of nearly 1,500 business executives globally reveals that 97% support the transition away from fossil fuels to renewable energy, with 78% advocating for this within the next 10 years.

The Climate Political CEO as a visionary realist
We need a new kind of corporate leadership: CEOs who are willing to take a greater political stance, who are visionary yet critically realistic about the challenges facing us, and who can lead to practical, tangible action. In the current environmental geopolitical landscape, massive shifts have been seen since the beginning of the year, where green policies are under attack despite evidence of a relentless decline in the environment and biodiversity. In a world where populist politics are on the march, how as does a CEO decide to lead?

Bring climate thinking into core business strategy
The first point to raise is the importance of embedding climate and nature thinking into core business and organizational strategy. In recent examples of companies backing away from initiatives, it is easy for them to do so if it is simply marketing rhetoric. This may suggest that it was never truly core to the business anyway.

The alternative requires thinking about how climate change will affect the business over the medium and long term, as well as what the organization can do in its field of expertise to innovate and contribute to solutions. It's about leveraging with purpose by aligning the company's environmental goals. Think of leaders like Anita Roddick (Bodyshop), Sarah McCaffrey (Verity Studios), Liza Rios (Greenlight Planet), and Karla Zimonja (Rebel). Notably, with executive education at the Smith School of Enterprise and the Environment at the University of Oxford, there remains a strong demand from companies to continue their environmental efforts. In a world of immense political pressure and shifting dynamics, there is a growing appetite to understand how organizations can continue on this path.

Greater emphasis on long-term thinking
It has been said before and is worth reiterating: CEOs need to adopt a more long-term perspective, looking beyond short-term profits and quarterly results. Irrespective of ideological opinions, climate change is ongoing and will affect society geopolitically, despite any geopolitical upheavals in the world. There is no quick fix to solve environmental problems. So, the question everyone needs to ask themselves is, do I continue to commit to long-term solutions, or ditch nature initiatives and climate strategy because of short-term economic and political pressure? Bravery is required.

By integrating long-term climate risk into corporate strategy, businesses increase their resilience against climate-related disruptions. It provides time to develop solutions that deliver value not only to the industry itself, but also to wider stakeholders. A great example is IKEA. Jesper Brodin, CEO of IKEA's Group, IKEA's parent company, has decided to lead IKEA's transition to a circular economy, investing in recycled materials and renewable energy, and aiming for climate positivity by 2030. He acknowledges that the traditional linear economy (take, make, waste) is unsustainable for the planet. As raw materials become scarcer and more expensive, along with changing demands from markets and regulatory agencies, he is determined to make IKEA serve a healthier planet.

Develop an entrepreneurial mindset.
The phrase, 'never let a good crisis go to waste' is very apt in this discussion. We are facing significant issues on multiple fronts. But in the darkest of times, innovation and new thinking can emerge. One outstanding example is Emily Reichert, CEO of Greentown Labs, the largest climate-tech startup incubator in North America. Under her leadership, Greentown Labs has become a hub for clean energy and sustainability-focused startups, supporting more than 500 startups that are accelerating climate solutions and climate resilience across various industries.

Focus on partnerships.
By its very nature, climate change is a global problem, and its challenges cannot be solved in isolation. To tackle the issues we face, CEOs should lead their organizations to collaborate with others, including companies in their supply chain, government bodies, NGOs, and competitors. A notable example of a business adopting this approach is Novo Nordisk, a global leader in diabetes and obesity treatments. Over four decades, Novo Nordisk has had three CEOs: Mads Oevlisen, Lars Rebien Sørensen, and Lars Fruergaard Jørgensen, who have all engaged in a significant number of partnerships with governments, industries, NGOs, and communities. The ownership structure enables them to adopt a long-term perspective, recognizing that systemic change is necessary to prevent, diagnose, and treat diabetes and obesity effectively. Accordingly, it has led them to pursue strategic partnerships locally and globally, including societies, in the development, distribution, education, production, and use of their products.

Develop a global perspective.
At the same time, businesses need to consider the problems of climate change from a global viewpoint beyond their self-interests. This is particularly true for organizations with supply chains spanning multiple countries and continents. The world is more connected than ever, a fact that the current debate around tariffs often overlooks.

A great example of this is Anabel Diaz, CEO of SAP Ariba, a division of SAP. The company is leading its global efforts to enable sustainable supply chain practices through digital transformation and data analytics. Under her leadership, SAP Ariba has become a key player in promoting ethical sourcing and emission reductions by providing a cloud-based platform that enables organizations to monitor and improve the sustainability of their suppliers, optimize resource utilization, and ensure compliance with social and environmental standards.

Engage your employees in environmental strategy.
Importantly, it is imperative to involve staff at all levels in sustainability initiatives. Employees will have the firsthand experience of the operational challenges and opportunities. Additionally, in any business, a diverse range of expertise and creativity should be available to draw upon. A company culture of ownership and accountability must exist around any environmental strategy. A business CEO who excelled in thisarea was Helena Helmerson, of the world's largeworld's-fashionretailer, H&Ms. Under her bold leadership the company took several initiatives to involve employees in climate change, such as mandatory training for all employees, circular economy principles for production, climate performance KPIs for all, and employees in design, sourcing logistics and retail were trained to make climate-conscious choices regarding more sustainable materials and optimizing transport and emissions.

A new kind of leader?
All the above is easy to talk about, much harder to do, especially in the polarized political world we currently inhabit. But we must try; it requires bravery and a belief in the power of business to effect change.

The new responsibility of a Climate Political CEO requires visionary leadership able to combine climate thinking into the very heart of business strategy, championing long-term resilience over short-term gains, and fostering an entrepreneurial spirit that seizes opportunities for sustainable innovation. By balancing the complex tensions between economic interests and environmental policies, and managing the risks of political backlash, the rewards are substantial. Taking a stand on climate and engaging multiple stakeholders, CEOs can drive meaningful, long-term social change, build brand loyalty, and unlock innovations and new markets. Taking on this role is a matter of corporate growth and responsibility, and it is essential for long-term business viability and for creating a sustainable future for all.