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LEADERSHIP REIMAGINED WHITEPAPER | 25 Environmental sustainability and diversity, equity and inclusion Survey results: L&D trends 3.95 out of 5: the average rating 3.34 out of 5: the average rating respondents gave for the importance respondents gave for their efforts at of aligning leadership goals with prioritising environmental sustainability environmental sustainability objectives when making decisions Taking steps in the green direction Our survey 昀椀ndings indicate that respondents recognise the importance of environmental sustainability when it comes to leadership goals and decision-making. However, the ratings also suggest that there may be opportunities for improvement to further emphasise and integrate environmental sustainability into leadership practices. Increasingly, organisations are paying attention to environmental sustainability as not just an ethical imperative but a strategic one, too. Considering that more than one in three Australian consumers strongly agree that businesses have a responsibility to operate sustainably, it’s not hard to see why43 . But people want real progress. PwC Australia recently reported that stakeholders have become increasingly discerning, seeking genuine commitment and greater transparency instead of ‘greenwashing’44 . For example, the report highlights that ASIC has “made greenwashing a priority, issuing at least 8 infringement notices and penalties since October 2022 in a range of industries.”45 Those who participate in greenwashing have a lot to lose. In addition to 昀椀nes and legal action, an organisation making false claims about its green credentials also risks its reputation and could lose investors in the process. For leaders and managers, it’s about recognising how important it is to take concrete steps towards sustainability. The same can also be said about implementing diversity, equity, and inclusion measures (DE&I). 43 NAB Business Insights March 2023 - The growing importance of sustainability as a consumer issue & are SMEs ready? 2023 44 ESG Trends in 2023, 2023, PwC Australia 45 ESG Trends in 2023, 2023, PwC Australia