A new analysis of the global executive landscape reveals that the Chief Executive Officer role has reached a critical inflection point, fundamentally redefined by the demands of environmental, social, and governance (ESG) responsibilities.
According to an An extensive study by global leadership advisory firm Egon Zehnder, the escalating complexity of the modern world has forced CEOs onto a “dual journey”: the non-negotiable requirement to transform themselves as individuals to effectively lead the transformation of their organizations and, ultimately, society.
The report, which surveyed nearly 1,000 CEOs across all major industries, provides stark evidence of how far the role has expanded beyond its traditional commercial purview. A striking 80 percent of CEOs believe their mandate has broadened beyond simply leading their company; they now acknowledge an active responsibility to coordinate with public stakeholders and governments to solve societal problems. The study positions the CEO as a central figure in global problem-solving, stating they are “embracing a new era of leadership” and positioning themselves as “key architects of societal progress.”
This sense of responsibility is most acutely felt in the realms of sustainability and social equity. Climate change was overwhelmingly cited as the most significant area of opportunity for collaborative action, with 32 percent of CEOs believing their greatest impact lies in coordinating between business, government, and other stakeholders to address the crisis. Furthermore, leaders are recognizing that “environmental change [is] an existential risk, not a theoretical one,” demanding a profound and immediate shift in operational priorities.
Alongside the ‘E’ of ESG, the ‘S’ is also gaining prominence, with 13 percent of leaders pointing to the urgent need to promote a fairer economy and maintain a commitment to inclusion, equity, and diversity, even amidst political challenges.
This external pressure to champion ESG performance translates into an urgent internal imperative. The study’s most compelling finding is the nearly unanimous agreement—80 percent of CEOs strongly agree—that they “need the capacity to transform myself as well as my organization.” The hard-driving, performance-at-all-costs model, which may have once secured them the top job, is now proving insufficient and even destructive. Egon Zehnder’s research notes that this failure to adapt is leading to disillusionment, burnout, and a forecast of “significant turnover in the CEO ranks.” The implication is clear: a leader who lacks personal self-awareness cannot successfully guide an organization toward a sustainable and purpose-driven future.
To navigate this highly complex landscape, a new set of leadership capacities must be developed, supplanting or complementing traditional strategic skills. The adaptive CEO must master three intertwined qualities: being adaptive, relational, and deeply self-aware.
Relational capacity is vital for the social dimension of ESG. It requires a leader to move past hierarchical communication, practicing deep listening and bringing a broader, more diverse set of stakeholders into strategic conversations. For a CEO dealing with environmental activism, community opposition, or social justice issues, the ability to “communicate authentically” and inspire trust is the foundation for collaborative solutions. As one CEO noted, “If I do not care for people, all leadership is meaningless—leadership is about people.”
Adaptive capacity is essential for balancing short-term commercial viability with long-term sustainable value creation. It involves the critical process of ‘unlearning’ old assumptions and embracing the tension between immediate performance and systemic transformation. The boldest leaders, the study suggests, are those who understand that “to perform is to transform,” viewing ESG integration not as a trade-off but as the very engine of future performance.
Self-Awareness acts as the foundation for the entire transformation. It requires the courage to seek frequent, honest feedback and cultivate the resilience needed to push difficult, purpose-driven initiatives that may not yield immediate financial rewards.
Crucially, the report highlights the central tension that impedes genuine ESG progress: while CEOs overwhelmingly sense their ultimate goal should be “prosperity for the many,” traditional financial metrics remain the dominant decision driver for most. This gap between noble aspiration and ingrained governance is where the risk of superficial commitments—or ‘greenwashing’—lies. The challenge for the modern board and CEO is to redesign internal governance and metrics to align with the expanded societal role, making social and environmental contribution an intrinsic measure of success, not a secondary afterthought.
In an era defined by geopolitical instability, technological disruption, and existential climate risk, the study serves as both a mandate and a warning. Leaders must cultivate the humility, curiosity, and courage to transform their inner self before they can credibly lead the external transformation required of their organizations. Failure to embark on this dual journey will ensure, as the report implies, a short and turbulent tenure at the top. The future of corporate leadership is one where personal evolution and planetary health are inextricably linked.
