The Role of Your Suit and Monk in Shaping Future ESG Leaders

I recently had a business meeting with a board member of a large company who asked if the Suited Monk philosophy could be applied to ESG.

My response was simple: Businesses today are no longer judged solely by their financial success. The rise of environmental, social, and governance (ESG) factors is reshaping leadership and calling for a new approach—one that balances external success with internal values.

This balance is where the Suit and Monk come into play, as leaders navigate the complexities of the business world while staying true to themselves.

The Rise of ESG Leadership

ESG has become a key focus for organizations worldwide. According to a 2022 report by PwC, 79% of investors now consider ESG risks when making investment decisions. This trend is not just about compliance; leaders must recognize that long-term success depends on their ability to integrate sustainability, social responsibility, and ethical governance (Monk) into their business strategies (Suit).

What Does This Mean for Leaders?

In the context of ESG, leaders must balance their "Suit" and "Monk":

• The Suit: Represents the external world—profits, strategy, growth, and the drive to achieve business goals. In ESG, this includes understanding metrics, managing risks, and gaining competitive advantage through sustainability initiatives.
• The Monk: Reflects the internal self—values, purpose, intuition, and ethical considerations. In ESG leadership, this means aligning personal and organizational values with societal and environmental responsibilities.

When these two perspectives are in harmony, leaders make balanced, ethical, and sustainable decisions. There’s no gap between the Suit and the Monk, ensuring sustainable leadership.

Why ESG Requires More than Just Strategy

A PwC study found that while 91% of business leaders believe they have a responsibility to act on ESG issues, only 29% have taken significant steps to integrate ESG into their core strategies. This gap shows that many leaders struggle to go beyond the "what" and "how" (the Suit), missing the "why" (the Monk).

True ESG leadership requires a shift in mindset—a deeper connection to purpose, a willingness to challenge the status quo, and a commitment to leaving a positive legacy.

Actionable Steps for Leaders: Integrating the Suit and Monk

1. Define Your ESG Purpose (Monk): Begin by understanding your personal values and how they align with your company's mission. Why is sustainability important to you? How can your leadership positively impact the world? Reflect on these questions to ensure that your ESG efforts are driven by genuine purpose rather than compliance.
2. Translate Purpose into Action (Suit): Once your "why" is clear, develop concrete strategies to integrate ESG into your business model. Set measurable targets for reducing your environmental footprint, improving diversity and inclusion, or enhancing corporate governance. The Suit’s role is to execute with precision and results.
3. Engage in Meaningful Conversations: ESG is not a solo journey. Encourage open dialogues with stakeholders—employees, customers, investors, and the community. According to Harvard Business Review, companies with strong ESG performance foster trust and loyalty, leading to higher levels of engagement and collaboration.
4. Lead by Example: Walk the talk. Be a visible champion of ESG in your organization, demonstrating how the Suit and Monk come together in practice. Whether it's reducing waste in your supply chain, ensuring ethical labour practices, or advocating for renewable energy, your actions set the tone for others to follow.

The Data Backs It Up

A McKinsey report found that companies with strong ESG practices experience 10% lower operating costs, and their risk of bankruptcy is reduced by up to 20%. Additionally, firms with high ESG performance outperform the market, with one study showing that over a five-year period, high ESG-ranked companies delivered returns 7.7% higher than their lower-ranked counterparts.

These numbers clearly show that ESG is not just a moral obligation—it is also a business imperative.

But without balancing the external drivers (Suit) with internal purpose (Monk), leaders risk treating ESG as a mere checklist rather than a core component of their leadership philosophy.

Conclusion: ESG Leadership is Balanced Leadership

As a leader, your ability to balance the Suit and Monk is essential for driving meaningful ESG outcomes. The external world demands results, but true leadership comes from within—aligning your purpose with your actions.

When you lead with both, you create a business that not only thrives in the market but also contributes to a better, more sustainable world.

- Raf Adams

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