There is a notable sea change within the c-suite as the role of chief sustainability officer (CSO) ups tempo, in alignment with meeting climate goal deadlines and improving social issues.
With the role’s recent revolutionary upgrade (the position has changed dramatically in as little as a year), the unprecedented rise of today’s CSO means they are even more curious about effecting positive change. Curiosity feeds learning, sparking a hunger for further development in an adaptive role that has made the CSO a major player within the organisation to identify issues and implement change.
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While businesses may be at the root of many current global issues, from climate change and ocean pollution to living standards and EDI (equality, diversity and inclusion), the CSO is skilfully equipped to support the organisation with the right tools to problem-solve and scale solutions for maximum impact. With 2050 fast approaching and a war on the European continent following the pandemic, nothing can be taken for granted and corporate life is more unpredictable than ever.
Companies are being challenged and held to account by investors, clients and employees who demand greater ambition.
The CSO ensures everyone places sustainability at the heart of the business model and we see greater success in organisations that embrace digitalisation and innovation as a cross-pollinator to the sustainability function.
Once a buzzword, sustainability is now at the forefront of all successful businesses, and inclusive for all, rather than just spanning the c-suite, with the CSO cultivating a strong, supportive team where everyone is responsible for prompting action to meet ambitious targets.
There are still some organisations where sustainability is an isolated silo, but they are thankfully becoming a dying breed. Successful organisations embed ESG in the whole organisation and ensure a top-down and bottom-up alignment, with every part of the organisation involved in ESG strategy implementation.
Traditionally, the CSO role involved assessing and monitoring the organisation’s performance, but has now become even more pivotal. It has swiftly evolved into something transformational, with the sustainability lens focusing more sharply on data scrutiny, analysing business operations, developing a robust strategy and implementing change. A good CSO will translate the complicated global trends into clear strategic action and ensure all staff are doing the right things every single day, as part of the company’s core.
It has evolved into a ‘spider-in-the-web’ role, with larger companies seemingly looking for a five-legged sheep. The skillset required is unique – on one hand, the CSO needs to have technical understanding and subject-matter expertise, but they must also possess the vital human skills including strategy development and delivery, leading high-performance teams and driving change through others.
There is a clear shift where not only shareholders drive the agenda, but all stakeholders push companies creating long-term value for customers, employees, society and the planet. In addition to the required skillset, customer demand and pressure means the CSO needs the clearest customer focus.
The CSO is now expected to decipher the entire business operations to assess risk and utilise impactful communication skills to influence others for a better environmental, economic and social impact, whether they are other businesses, investors, governments or regulators.
With climate change impacting people and the planet, businesses need to raise the bar to inspire others in such a fast-paced environment. With the goalposts ever changing, the CSO should possess utmost confidence to become an influential gamechanger, create the right narrative to develop a strong sense of sustainability throughout the organisation and enhance the future of the business.
Fortunately, there are many organisations ranking sustainability as a top priority and the number of CSO mandates recently appointed is proof of the increased ambition that a lot of corporates have. It is positive to see that many listed organisations are prepared to accept a short-to-medium-term drop in profitability when investing in sustainability, with evidence showing companies with clear and dedicated sustainability ambitions perform better financially than those without long-term goals.
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Organisations are generally more supported when they are driven by long-term financial performance and/or shareholder value, provided there is a clear ambition to ‘do the right thing’. The CSO plays a major role in steering a company forward effectively – provided all staff are on board the sustainability ship, bound for the same destination.
