As part of Gold Network’s Faces of Gold interview series, we are honoured to feature Professor Paolo Taticchi, OMRI—Strategy and Sustainability Professor at University College London and globally recognised expert on sustainability transformation. Named among the most influential Italian thinkers under 40 and Knight of the Order of Merit of the Italian Republic, Paolo has worked with Fortune Global 500 companies and governments worldwide to shape future-ready, values-driven business practices. In this exclusive interview, he shares his perspective on regulation, innovation, social equity, and the pivotal role of SMEs in advancing sustainability at scale.

Paolo, you’ve worked with numerous Fortune Global 500 companies on sustainability transformation. What common mistakes do businesses make in their sustainability efforts?

One of the most common mistakes businesses make is approaching sustainability solely as a compliance issue or a communication exercise (at times leading to greenwashing).  Real sustainability transformation requires embedding sustainability into the core business strategy and operations. Companies frequently fail to integrate sustainability metrics into executive performance reviews or fail to allocate appropriate resources. Another common mistake is the lack of holistic thinking: companies might invest heavily in one area (e.g., carbon footprint reduction) but neglect other equally important aspects like social sustainability or supply chain management. It’s crucial that companies recognise sustainability as a driver of innovation, growth, and long-term competitive advantage, not merely a cost or marketing strategy. 

With increasing ESG scrutiny, how do you see the role of regulation shaping corporate sustainability strategies?

Regulation is becoming increasingly significant in shaping corporate sustainability strategies. We’ve seen how regulations such as the EU Corporate Sustainability Reporting Directive (CSRD) are making sustainability disclosure mandatory, pushing companies toward greater transparency and accountability. Regulation can level the playing field by creating standardised benchmarks and minimising the risk of greenwashing. In this scenario, proactive firms that integrate ESG criteria into their strategies not only avoid compliance risks but can also position themselves advantageously. I believe regulation will continue to drive companies to move from reactive compliance towards strategic integration of sustainability, accelerating broader systemic change.

Sustainability in business is often seen through an environmental lens, but social impact is just as crucial. How can companies drive meaningful change in social equity and inclusion?

Indeed, social sustainability is a critical pillar that companies should prioritise alongside environmental concerns. To drive meaningful change in social equity and inclusion, companies must integrate social sustainability into their strategic planning. This involves improving diversity, equity, and inclusion (DE&I) internally, ensuring fair working conditions across supply chains, and developing products and services that contribute positively to society. Businesses should actively engage communities, creating partnerships that amplify positive impacts. Additionally, transparent communication about social impact, supported by measurable KPIs, helps build trust and genuine engagement with stakeholders.

 AI and automation are reshaping industries – how do you see their role in advancing sustainability?

AI and automation are powerful tools for advancing sustainability. They’re essential for analysing vast datasets, identifying trends, and optimising operations. Companies leveraging AI can significantly enhance efficiency, minimize waste, and improve resource management, directly contributing to sustainability goals. AI also enables businesses to better forecast supply chain issues, manage energy usage intelligently, and create smarter, sustainable cities. However, alongside benefits, it’s important to navigate AI ethically, ensuring technology is inclusive and equitable in its application – avoiding unintended negative social impacts.

Sustainability is often linked to large corporations, but what about SMEs? How can smaller businesses implement impactful sustainability strategies?

While sustainability efforts of large corporations often get more visibility, SMEs play a critical role in sustainable transformation. SMEs can adopt impactful sustainability strategies by starting with practical actions – such as resource efficiency, energy conservation, waste reduction, and responsible sourcing. Collaborations and partnerships are crucial for SMEs, enabling access to sustainability expertise and shared resources. SMEs can also leverage their agility and closer customer relationships to innovate sustainable products and services rapidly. By adopting sustainability, SMEs can enhance their brand reputation, differentiate their products, and open new market opportunities, thus positively affecting their long-term competitiveness and growth.

You can find more about Paolo’s research, projects, books and speaking on www.paolotaticchi.com.