By Nancy Mancilla, Principal, Environ Energy
In an era defined by uncertainty, risk, and constant shocks, effective leadership in the ESG space requires a blend of humility, adaptability, and strategic foresight. As we navigate the challenges, one thing is clear: We need leadership that is values-driven, resilient, and prepared to act boldly in the face of complexity.
Last month, I was fortunate to attend the ESG Adria Summit in Montenegro for the third consecutive year. I was inspired by leaders from across the Western Balkans and beyond who consistently show up to tackle the big issues of our time and pursue sustainable development opportunities. I’m sharing some of their words here as they offer not only inspiration but also a path for moving forward in these turbulent times.
I also am excited to announce that the ESG Adria Summit 2025 catalyzed a powerful new collaboration between Environ Energy and Advantis Broker that combines Environ’s global ESG expertise with Advantis Broker’s deep local knowledge. Together, we are launching a comprehensive suite of regionally tailored ESG advisory, training, and strategic services to empower companies to not only meet evolving ESG expectations—but to lead with purpose and impact. Stay tuned for more details on our new partnership and service offerings.
The Call for Humility and Honesty
Former Icelandic Prime Minister Katrín Jakobsdóttir said it best: “We need to be humble, we need to be human, and we need to be honest.” These words resonate strongly within the environmental, social, and governance (ESG) movement. In a world that is increasingly volatile, businesses must embrace these values as a foundation for their decisions, both for today and for the future.
“More risk, more shock, more uncertainty is certain. How do we create resilience in this?” asked Ian Goldin, a professor at Oxford University. Resilience is key—not only in terms of climate, but across all facets of business operations and strategy. Companies that thrive will do so by creating systems of resilience that can endure, adapt, and even grow in the face of unexpected challenges.
The ESG Revolution: Values and Market Shifts
Robert Spano, a prominent human rights attorney and scholar, captured the essence of the ESG revolution: “The ESG revolution has always been about values.” Today, businesses are making a values-based judgment—choosing whether to pursue short-term protectionism or to embrace the long-term potential of resilience through sustainability.
A key point of focus is how markets and business models are evolving. Companies that operationalize ESG principles and embed them into their business model and financial systems will not only be better positioned to minimize risks but will also gain a market advantage. This is especially evident in markets with more competition, where ESG practices provide a way to stand out and attract stakeholders, especially consumers and investors alike.
Shaping the Future of Jobs and Leadership
As the business landscape shifts, so too must the way we think about jobs and leadership. Traditional accounting firms and large consultancies will need to adapt, but the agility of small-to-medium-sized consultancy firms will be crucial.
The role of a Fractional Chief Sustainability Officer (CSO) will become more common, offering organizations the expertise needed to navigate complex sustainability challenges without having to build out entire teams where budgets are scarce. We’re already seeing the need in the United States where the market is much more mature and in the Balkans as the market is evolving. Hence, Environ Energy has established a new Fractional CSO service through which we will offer a full suite of skills via a single source retainer with one point of contact. Our experts will take the lead to guide you in developing and executing a comprehensive sustainability and energy management strategy. Watch for an official announcement coming soon or contact us at info@environenergy.com to find out more.
In addition, a new generation of leaders is needed. As sustainability expert, Leo Johnson pointed out, “Middle managers are the barriers to the future of sustainability; their incentives are unaligned to the C-suite’s.” This disconnect between the older generation of managers and younger leaders, who are often more values-driven and eager for change, highlights a key obstacle in sustainability efforts. Putting young people on boards of directors, for example, is an effective way to infuse diversity of mindsets and a fresh perspective into decision-making.
Transformational Leadership: The Future of ESG
The future of business and sustainability will be shaped by a new type of leader—one who thinks across sectors and is adept at navigating both the short and long term. Bill Gates suggests we are entering a new phase of human evolution, where leadership will be required to manage the intersection of artificial intelligence, energy transformation, and other complex global challenges.
As Serbian climate leader Andrej Bojić stated, we need “new leaders with a crossover mindset, able to think both short and long-term.” These are the leaders who can lead the way in an era of uncertainty, balancing immediate needs with the long-term vision necessary for sustainability.
A transformational leader in ESG is someone who is motivated by outcomes over tangible assets. It’s not enough to simply have good intentions—leaders must build teams around the belief that positive change is possible. This “constructive hope” is what will fuel the sustainability revolution and create meaningful impact across industries.
Why Financial Services Should Take the Lead on Driving Sustainability
While financial institutions in the United States are pulling out of their climate commitments, they are the main generators of positive change across Balkan economies—in terms of sustainability.
Given that European Union banks hold the majority of market shares in the Balkan countries, their local branches spread knowledge about sustainability and, under the influence of the European Central Bank (ECB), local regulators pass regulations that are in line with ECB directives.
The fact that the economies of the Balkans are completely bank-centric gives banks additional strength in implementing the sustainability agenda, through the selection of credit lines and specific reporting requirements from clients. The energy transition of the region is a great opportunity for banks, and almost all banks are very successful in financing renewable energy projects.
Insurance companies have not yet fully accepted sustainability practices in the function of investing technical reserves but, on the other hand, they are pressured by increased risks due to climate change. In the coming years, it would be realistic for them to join the banks and become generators of change.
In regions like the Balkans, resilience has become a critical component of business survival in a turbulent global environment. The ability to adapt, innovate, and respond to shocks will be the deciding factor for companies that want to thrive in the future.
Moving Forward: Aligning Strategy with Resilience
Finally, businesses must ensure that their strategies are aligned with resilience. According to a Bain 2021 report, teams must “go deep on the disruptions, link people who have an eye on the disrupter back into the strategy” to ensure that the organization is prepared for the unpredictable future.
As Jakov Milatović wisely said, “Never compromise your values. Once you do, you’re not a leader anymore.” In these uncertain times, true leadership is grounded in values and a commitment to resilience. The companies that hold steadfast to their values and adapt to new realities will be the ones to lead the ESG revolution forward.
A Call to Action
ESG is no longer a “nice to have”—it’s a mindset essential to creating long-term value for all stakeholders. After years of hard work embedding this thinking into business strategy and culture, it cannot—and should not—be dismantled or deprioritized. ESG must be fully integrated into everything we do.
Today, we are at a pivotal moment. Leaders must reflect and ask themselves:
- Is our current strategy truly aligned with ESG principles?
- Do we have the right people and mindset to anticipate and act on ESG-related risks and opportunities?
- Are we measuring what truly matters—long-term value, not just short-term returns?
- Is it time to revisit our corporate purpose, operations, and value chain through an ESG lens?
- What are the risks to future generations—and to the resilience of our company—if we fail to act with long-term, systems-based thinking?
No single leader can tackle this alone. Ensuring business resilience and relevance in a rapidly shifting landscape requires collective action. Investors, executives, employees, customers, and communities must work together to embed ESG into the core of business decision-making. Our dedicated and knowledgeable consultants at Environ Energy can be part of the solution in the U.S. and in Europe.
Nancy Mancilla is a Principal at Environ Energy, where she leads sustainability strategy development, execution, and market leadership to enhance ESG performance and value creation. She founded ISOS Group in 2008 to advance the sustainability profession through training and advisory services in ESG disclosure, which led to the firm’s acquisition by Environ. Her work has driven measurable improvements in ESG ratings and earned her recognition on the Environmental Leader 100 list (2022), a Lifetime Achievement Award from the Southern California Sustainable Business Council (2015), and other honors including the 2016 Leadership California cohort and Eisenhower Fellowship in China. Nancy has taught at Arizona State University, The New School, and Alliant International University, where she also served on the Advisory Board for the California School of Management and Leadership. She currently sits on the board of The Kim Center for Social Balance and has held advisory roles with the Corporate Responsibility Officers Association (now 3BL), Clinton School of Public Service, and Cultural Vistas. Her insights have been featured in Financier Worldwide, Triple Pundit, Nomura Research Institute, and academic publications.
Build ESG resilience with Environ Energy. From strategy to reporting to our new Fractional CSO services, our experts help you lead with purpose and impact. Contact us at info@environenergy.com to get started.
