The authors held a series of focus groups with experienced sustainability leaders at a dozen large companies. They investigated how leaders go about setting goals, adapting them, and communicating them to stakeholders. In particular, they sought to learn how much companies engage with internal and external stakeholders, how goals drive performance, and what happens when they don’t reach their goals or they decide to change them.

In the years since the 2021 round of global climate negotiations, more than 2,600 companies have responded to alarms raised by scientists and policy makers by setting aggressive targets to reduce carbon emissions. 1 Walmart aims to become powered by 100% renewable energy by 2035; Ikea has made a commitment to produce as much renewable energy as it consumes by 2030; General Electric aims to transform itself into a net-zero company by 2050; and American Electric Power plans to reduce its carbon emissions 80% by 2030, with a goal of net-zero emissions by 2045. 2