Good morning.
When it comes to assessing the business impact of climate change, one of the most pragmatic thinkers I know is Spencer Glendon of Probable Futures. He’s an economist and former head of research at Wellington Management who studies how climate instability is upending property insurance and other models that underpin commerce and civilization itself. If you don’t read his seasonal essays, you should. In his latest, he notes that 12,000 years of climate stability have “enabled a kind of climate illiteracy.”
That’s starting to change. As we head into what could be the hottest summer on record, climate deniers are in short supply. Climate change is altering travel preferences, weather patterns, tax policy and even the Olympics.
CEOs are worried. Gallagher CEO Pat Gallagher, a global leader in insurance brokerage and risk management, recently surveyed 1,000 middle-market clients. “What’s No. 1 on their minds? Weather,” he says. “Whether you’re in the Midwest or New York, you’ve got to be thinking about why the weather’s changing.”
But others view technology change, economic volatility, talent shortages and the regulatory environment as more immediate threats to their organizational health. In Russell Reynolds’ latest Global Leadership Monitor, climate change was the least of their concerns but also one of several threats that they felt less prepared to handle. As Russell Reynolds CEO Constantine Alexandrakis notes, “new issues keep getting layered in,” adding complexity and volatility to decision-making in the top job.
In that respect, the Supreme Court’s reversal of the 1984 Chevron doctrine could turn out to be a pyrrhic victory for business leaders and a boon for lobbyists and lawyers. The doctrine gave federal agencies the benefit of the doubt in deciding how ambiguous laws should be interpreted. Its rollback could change banking regulation, environmental policies, food safety and health care standards, and other agency actions. Expect to see plenty of lawsuits and regulatory instability.
Regulations rarely keep up with the speed of technology, transformation, and risk. That’s why business leaders often see the regulatory environment as an obstacle to innovation. But whether it’s a carbon tax, a vaping ban or consumer protections, rules can also provide the clarity and consistency needed to move forward.
Along with the cost of climate change, leaders may now have to deal with new costs and complexity as old rules are battled in court.
Fortune celebrates those who do the right thing. Change the World is Fortune’s annual list featuring companies that are doing well by doing good. These companies are using the creative tools of business to help the planet and tackle society’s unmet needs—and they’re earning a profit while doing so. You can see last year’s honorees here. The deadline for applications this year is Monday, July 29, and the list will be published in late September. Please help us put a spotlight on the leaders who inspire us to do better by nominating a company here. Any questions can be sent to [email protected].
More news below.
Diane Brady
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TOP NEWS
CEOs on Trump vs. Biden
Behind closed doors, four CEOs tell Fortune’s Shawn Tully that they hold both U.S. presidential candidates in low esteem. The business heads criticize Trump for his character, yet deem the current administration to be anti-business. The CEOs also think both candidates are ignoring a looming fiscal disaster. Fortune
Hitting reverse on DEI
Tractor Supply’s decision to withdraw its carbon emissions and DEI goals amid conservative criticism could backfire on the retailer. Tractor Supply, No. 293 on the Fortune 500, now sells to diverse exurbs instead of more rural regions. Still, a conservative customer boycott is not what Tractor Supply needs right now, with comparable sales growing 1.1% in Q1 2024. Fortune
Culp's new contract
There's one fewer candidate for Boeing's top job. GE has extended the contract of CEO Larry Culp through at least 2027, taking him out of the running for Boeing chief executive. Culp oversaw a multiyear turnaround at GE. Blooomberg
AROUND THE WATERCOOLER
Wholesale marketplace unicorn Faire elevates CFO Lauren Cooks Levitan to president by Sheryl Estrada
JPMorgan is converting old First Republic branches into luxury incubators to study the rich by Michael Del Castillo
Whole Foods CEO on getting employees to support your vision and what to know before entering the corner office by Ruth Umoh
After a meteoric rise and equally epic fall, Carvana’s stock is up more than 500% in a year. But one top analyst thinks the ride gets rougher from here by Sheryl Estrada
The Germans and French get over 30 days off a year—yet, they feel more ‘deprived’ of vacations than their U.S. peers with half the days by Prarthana Prakash
Professionals would rather ‘super-commute’ for over 4 hours a day and keep their pandemic-style suburban life than live near the office by Orianna Rosa Royle
This edition of CEO Daily was curated by Nicholas Gordon.