Wise Leadership in a Wild World - Part II: Stability in the Crosswinds
In a volatile world, sustainability is now a core leadership duty. Uniting short-term interests with a long-term vision. Meeting present needs without compromising future generations.
As AI reshapes decision-making and societal expectations intensify, leaders must elevate smart intelligence to wise judgment. Not in spite of the current turbulence, but because of it.
No leader is flawless. But the journey is as important as the destination. Wise leaders strive to build organizations that can weather adversity and thrive. They are the role models who carry business and society forward.
What core competencies define the wise leader? How are external pressures impacting them?
On the path to wisdom
Wise leaders rise to the challenge. They address dilemmas in a holistic, responsible way. They capture value not only for shareholders but for stakeholders. They strive to meet present needs without compromising future generations.
No leader is flawless. But the journey is as important as the destination. Wise leaders strive to build organizations that can weather adversity and thrive. They are the role models who carry business and society forward.
Polytrauma and survival mode
Preety Kumar is the Managing Partner of Amrop in India. “Every two to three years something new happens: COVID, war, another economic cycle. Rising populism is redefining globalization, and leaders will need wise judgement to understand how their decisions impact sustainability.”
Sustainability cannot be a side order. Beyond ESG measures, “it must be hardwired into a company’s purpose, business model, operating principles, performance metrics. It is internalized, with a huge external impact on reputation and quality.”
Sandra Schrögenauer, Managing Partner of Amrop Austria, adds: “The transformation we human beings are undergoing places a premium on core emotional resources: self-awareness, reflection, the ability to see the broader context, assess a threat, and determine a response.”
A whole new level of uncertainty
The current disruption is a “toxic cocktail”, says Fredy Hausammann, Amrop’s Global Chair. Igor Šulik, Managing Partner, Amrop Slovakia, agrees. “We are in a global multi‑crisis.”
Amrop Partners meet top leaders daily. Survival mode is pushing a short-term focus, warns Victor Reis, a Partner with Amrop in Sweden. “Everyone wants to do what’s best until the market cools and shareholders yell about quarterly targets. Fear causes bad decisions.”
“When survival is at stake, people forget long‑term ideals,” agrees Jimmy Chen, Managing Partner of Amrop in China. “In the long run, wise leadership becomes even more important.”
Fear is rife. Job insecurity is widespread. AI is leading people to question their role in society. In a trembling world: “There is a split between leaders who are courageous, visionary, open to learning,” says Sandra Schrögenauer. “Those who see AI as an opportunity, and those who only see a threat.” Victor Reis understands. “AI delivers enormous opportunities, but also the realization that millions of others have sophisticated tools and may be running circles around you.”
Role models and muddy ripples
We’re facing a leadership vacuum. “There is no accountability,” says Fredy Hausammann. “Political leaders were once role models for business leaders and society. Where do we get our guidance now?”
The immorality is infectious. “It signals to people with less wisdom that it is legitimate to lead without respect, reliability, or trustworthiness. Poor conduct in global trade, including rule violations, have become the flavor of recent years.”
Juan Pablo Román, Managing Partner of Amrop in Chile, agrees. “Everything depends on the person in charge. The current situation shows what happens when there is a lack of wise and purposeful leadership. Politics influence the decisions of companies and executives.”
Any decision-making demands an acute awareness of developments outside the boardroom. But the mass exploitation of social media by unscrupulous governments, political parties and leaders makes it difficult to tell fact from propaganda, says Preety Kumar. Slipping educational standards make people more susceptible to manipulation, warns Juan-Pablo Román. Business leaders will find it difficult to rise above the noise of echo chambers.
"Short-cycle economic events, ambiguity and risk are becoming the very definition of strategy."
Health check on 5 key leadership competencies
How does wise leadership translate into the way we think and behave? What can leaders focus on?
For Sandra Schrögenauer, people’s change tolerance has limits. “They need something higher than disruption. Instead of pretending to know all the answers, leaders must offer a foundation that enables them to navigate.
1. Vision
A wise leader steps back from daily routine, explores alternatives, and focuses on the broader long-term context - with a healthy ambition. But as any swimmer hit by a big wave knows, it’s hard to watch the horizon when you can’t breathe.
For the Amrop Partners, vision is the most critical competency – and the most compromised.
“The line of vision is now shorter than ever,” says Victor Reis. “Investors get nervous when many things happen at once; they demand data to support a leader’s direction. But in a fast-moving landscape, leaders must be wise and smart - not the same thing.” Wisdom involves the emotional balance to make calculated bets. “Some rush toward extremes, like “AI everywhere”. As someone said, ‘technology will never move this slowly again’.”
“You don’t want to sacrifice the long term for short‑term goals,” says Igor Šulik. “Many companies are continuing to invest in sustainable business. But sometimes the benefits of long‑term thinking can’t be capitalized or clearly attributed to the steps a leader takes today.”
“All the goodies become slogans on the wall until the company is healthy,” says Jimmy Chen. Still, we shouldn’t lose hope. “The values are still there. You don’t forget them. The short‑term emphasis just shifts.”
It is not enough for leaders to simply say: “We’ll survive this”, says Sandra Schrögenauer.
2. Courage, authenticity & integrity
Wise and purposeful leaders understand risk. They willingly choose unconventional solutions. They commit to innovative and feasible products, services, solutions and processes. Their decisions may change the organization’s image.
Regulatory compliance doesn’t earn legitimacy. Amrop proposes a 4-level scale: from legal risk, to moral excellence.
But too many leaders are operating below the moral line. “It’s about deals, tactics, and survival,” says Fredy Hausammann. “Courage, integrity, and authenticity take a back seat.”
See the full article for Amrop’s 4-level scale.
4. Empathy
A wise and purposeful leader seeks to understand others’ perspectives and emotions, respecting rather than judging. They encourage diversity and social awareness.
Empathic leaders go the extra mile, says Jimmy Chen, as people feel increasingly tense and burnt out. “Leaders with true empathy tend to be more resilient, and help others become more resilient.”
Igor Šulik also sees empathy as a stabilizer. “Without empathy, a leader cannot bring people along.”
A recent Harvard Business Review article advocates ‘wise empathy’: celebrating positive emotions, but meeting negative ones with compassionate support rather than over-identification, reducing burnout while strengthening relationships, engagement and retention.1
3. Learning
A wise leader integrates complex information about technology, trends, competitors and stakeholders into the company’s mission. They are disciplined, motivated and perseverant learners.
AI is adding another layer. A leader’s attitude is revealing, says Sandra Schrögenauer. Do they approach the machine with humility and curiosity (rather than fear)? “I’ve seen it all before” is dangerous…”
But well-fed leaders may be asleep in the watchtower. “Many boards and owners take a classic view: because they’re successful, they think they should only look inward,” says Jimmy Chen.
5. Accountability
The wise and purposeful leader takes responsibility towards stakeholders for their own actions, those of the business unit and the organization. They understand the impact of new regulations and environmental forces and support colleagues in doing so.
But today’s harsh environment encourages the opposite. “In a culture of fear, what do you hold yourself accountable for?” asks Preety Kumar. “We deal with leaders every day. I see how they think, operate, take decisions… Do they know what sorry means?”
“People tend to blame external factors. They hesitate to admit mistakes because they fear the consequences,” agrees Juan Pablo Román.
Wisdom in action. Drilling down to ESG.
Social and environmental considerations are core to purposeful leadership. ESG measures reflect its health. What do the stats say?
Upside: Sustainability is gaining importance for many business leaders. ESG reporting is taking root and investor interest resilient. Technology, regulation, and state-level action in the US are creating new tools and pressure for progress. There are wins in education, healthcare, internet and electricity coverage.
Downside: Progress remains uneven. Companies face unclear rules, regional political resistance, skills gaps, and the risk of ESG being deprioritized or under-communicated. SDG delivery is still too slow, with persistent poverty, hunger, displacement, housing insecurity, and insufficient climate finance.
A 2025 survey by the UN Global Compact and Accenture reveals that nearly 90% of CEOs think the business case for sustainability has strengthened over 5 years. But under 15% feel well prepared for inflation, trade and climate change. As the world breaches the 1.50C threshold, a $4.3 trillion annual SDG financing gap means 3.4 billion people now live in countries that are spending more on interest than on health or education.2
They invite the private sector to embed sustainability into strategy and culture, scale innovation across value chains, and partner to shape rules that reward long-term value. Companies will not only stimulate SDG delivery and economies, but build their own resilience and growth.
Amongst 5 keys to building momentum, including collaborating on regulation, harnessing consumer demand, expanding access to technology and upskilling, the UN Global Compact and Accenture propose “leading with credibility and purpose.”
Moving goalposts
“The rules are unclear,” says Fredy Hausammann. The global picture is indeed fragmented. Mandatory sustainability disclosure is now the norm in major economies, with ISSB standards providing a global baseline. 35 jurisdictions worldwide have adopted them, but on a voluntary or mandatory basis. 11 plan to.3
The EU is more defined. While ESG CSRD directives have reduced by 80% the scope of companies affected, they remain mandatory for larger companies (see ‘sources’).4
Meanwhile, investor expectations and international standards mean large firms cannot avoid ESG reporting. Over 8,900 are setting targets as defined by the Science Based Targets Initiative (SBTi), up from 7,500 in 2024 and covering 45% of global market capitalization.5
The truth about ESG investing
In 2025 the Corporate Governance Institute (CGI) called recent setbacks “small backflows” in comparison to a bigger wave sustained by confidence in the long-term value of sustainable investments. $41 trillion ESG assets are currently under management gobally,6 stabilizing after the 2023-2024 anti-ESG pushback in the US.
Deepening regional divides
Greenwashing has a new antithesis: corporates facing political resistance may use "hushing" to avoid government criticism of their ESG activities.
Reporting regulations mean boards and executive teams will need new skills, say the CGI – particularly the risk, strategy and finance functions. Technology will lead, with AI and blockchain allowing real-time monitoring of supply chains, and automated sustainability audits. But polarized ESG attitudes are fueling investor activism.7
In the US, state-level progress marches on. California (the world’s fourth largest economy) has enacted the Climate Corporate Data Accountability Act and Climate-Related Financial Risk Acts.8 The New York State Senate has taken similar measures.9
Progress is patchy
But as reported by the UN Global Compact and Accenture in 2025, only 35% of SDG targets were on track for the 2030 deadline, or moderately progressing. Nearly half were too slow; 18% had regressed.10
Still, over 100 million children and youth can now access education. Maternal and child mortality rates have declined since 2015, with internet use rising by 70% and 92% of the global population with access to electricity.
“ESG has received reduced focus in recent years, even though long-term assessments of companies will continue to rely on it. The next generation still cares deeply. In the long term, ESG must be integrated as a prerequisite for business resilience,” says Sandra Schrögenauer.
In this global multi-crisis, wise and purposeful leadership is more difficult than ever. But it is precisely now that it is essential. Emotional maturity, contextual intelligence, and courage are now vital to navigate shifting strategic maps and rising societal volatility. Leaders will need to integrate business performance with community and environmental stewardship: acting as stabilizers in a turbulent and polarized world.
Read the full report
Wise Leadership Part 2: Stability in the Crosswinds.
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1 Hobson, N., Depow, G.J. (2026), 'How Leaders Can Practice Wise Empathy.' Harvard Business Review, January 14, 2026
2 UN Global Compact–Accenture 2025 CEO Study
3 Laidlaw, J., (2026). ‘August 2026 – Where does the world stand on ISSB adoption?’. S&P Global, 27 August, 2026
4 EU Omnibus Package 2026: CSRD Scope Reduced by 80% — What Changed and Who Is Still In Scope, (2026). FinancialRegulations.eu. A company is now in scope only if it has more than 1,000 full-time equivalent employees AND more than €450 million in net annual turnover. Non-EU companies are in scope if they generate more than €450M in net turnover in the EU AND have either an EU subsidiary with >€200M net turnover or an EU branch with >€40M net turnover.
5,6 Sustainability Atlas – State of Sustainability 2026
7 Byrne, D., (2025). The future of ESG: a world divided. Corporate Governance Institute
8 Eversheds Sutherland (US) LLP, (2026). ‘US: California’s Climate Disclosure Laws – What Businesses Need To Know.’
9 Sweep, (2026). ‘New York’s Climate Corporate Data Accountability Act Explained.’
10 The Sustainable Development Goals Report 2025, United Nations