Sustainability Management - From Theory to Practice

This article examines the evolving role of sustainability management in corporate strategy and operations. Based on presentations delivered at the "Sustainability Management - From Theory to Practice" conference organized by the Arison Center for ESG in collaboration with PwC Israel, the authors analyze how sustainability and ESG (Environmental, Social, and Governance) factors have transcended mere regulatory compliance to become fundamental components of business strategy with direct implications for corporate success in competitive markets.

The research demonstrates that recent regulatory shifts and heightened investor expectations have compelled organizations to adopt proactive sustainability management approaches that extend beyond basic reporting requirements. Drawing on PwC survey findings, the authors illustrate the transformative impact of these changes across three critical domains: organizational structures, investor preferences, and consumer behavior. The evidence suggests that investors increasingly favor companies implementing proactive climate policies, creating significant market incentives for sustainability integration. This preference trend, combined with increasingly stringent regulatory demands, necessitates the strategic positioning of Chief Sustainability Officers (CSOs) as pivotal strategic actors within corporate leadership structures.

Yair Avidan, Chairman of the Advisory Committee and Head of the Fellows Forum, Arison Center for ESG, Reichman University.

Eran Raz, Partner and Head of ESG and Climate, PwC Israel.