The rising and evolving demand for Chief Sustainability Officers (CSOs) – from a PR function to an indispensable role in embedding sustainability into an organisation’s core strategy and viability.
In today’s business world, sustainability is no longer just an optional or secondary concern—it has become a strategic imperative. Stakeholders, investors, and regulatory bodies are demanding greater transparency and accountability regarding corporate sustainability efforts. A successful sustainability strategy is no longer about Corporate Social Responsibility (CSR) alone; it now has direct implications on a company’s long-term viability, reputation, and profitability.
One of the most significant changes in the sustainability landscape is the growing prominence of the Chief Sustainability Officer (CSO). Once considered a peripheral role with a focus on PR, the CSO is now seen as indispensable in embedding sustainability into the core of an organisation’s strategy. Based on a number of studies and reports, this article explores the rising demand for CSOs, their evolving roles to strategists or transformative change agents, key challenges, and the critical skills required to thrive in this leadership position.
In today’s business world, sustainability is no longer just an optional or secondary concern—it has become a strategic imperative. Stakeholders, investors, and regulatory bodies are demanding greater transparency and accountability regarding corporate sustainability efforts. A successful sustainability strategy is no longer about Corporate Social Responsibility (CSR) alone; it now has direct implications on a company’s long-term viability, reputation, and profitability.
One of the most significant changes in the sustainability landscape is the growing prominence of the Chief Sustainability Officer (CSO). Once considered a peripheral role with a focus on PR, the CSO is now seen as indispensable in embedding sustainability into the core of an organisation’s strategy. Based on a number of studies and reports, this article explores the rising demand for CSOs, their evolving roles to strategists or transformative change agents, key challenges, and the critical skills required to thrive in this leadership position.
The growing demand for Chief Sustainability Officers (CSOs)
With the increasing emphasis on Environmental, Social, and Governance (ESG) criteria, the role of the Chief Sustainability Officer (CSO) has become critical in driving these initiatives across organisations. CSOs are no longer rare; they are now a key presence in corporate boardrooms. According to BoardEx, as of 2023, over 27% of S&P 500 companies had appointed a CSO, up from 19% just a few years ago. This rise is a testament to how businesses are recognising the strategic importance of sustainability for long-term success.
A significant rise in CSO appointments was observed between 2020 and 2021, with 394 professionals being hired for this role in that year alone than in the previous eight years combined (414 from 2011 to 2019). Regulatory frameworks, such as the EU Green Deal and ESG reporting standards, have pushed many organisations, particularly in Europe and the US, to incorporate CSOs into their executive leadership. These roles now manage not only environmental concerns but also align sustainability initiatives with broader business goals and shareholder value.
A significant rise in CSO appointments was observed between 2020 and 2021, with 394 professionals being hired for this role in that year alone than in the previous eight years combined (414 from 2011 to 2019). Regulatory frameworks, such as the EU Green Deal and ESG reporting standards, have pushed many organisations, particularly in Europe and the US, to incorporate CSOs into their executive leadership. These roles now manage not only environmental concerns but also align sustainability initiatives with broader business goals and shareholder value.
The evolving role of the CSO
Historically CSOs have acted like stealth PR executives—their primary task was to tell an appealing story about corporate sustainability initiatives to the company’s many stakeholders, and their implicit goal was to deflect reputational risk. The role had virtually no involvement in setting company strategy or communicating it to shareholders; those responsibilities fell to the CEO, the CFO, and the head of investor relations.’The Evolving Role of Chief Sustainability Officers, Robert G. Eccles, HBR, July-August 2023
Traditionally, the CSO was often viewed as a PR figure, focusing on communicating the company’s CSR efforts without having substantial influence over core business decisions. However, the role has dramatically evolved in recent years. CSOs are now deeply involved in shaping corporate strategies, with their responsibilities extending far beyond CSR to include comprehensive sustainability initiatives across all business functions.
In the past, CSOs were seen as “stealth PR executives,” tasked primarily with managing a company’s reputation around sustainability initiatives. However, today’s CSO is much more than a spokesperson; they are strategic leaders tasked with driving change across the entire organisation. They work closely with other C-suite executives to ensure that sustainability goals are not only met but aligned with the company’s broader objectives. The CSO at a Crossroads, a BSR report, find that 83% of CSOs report that collaboration with other C-Suite leaders is essential for achieving ambitious sustainability objectives.
Moreover, CSOs are now seen as change-makers who can effectively communicate sustainability challenges and opportunities to stakeholders, including investors, regulators, and employees. As a report from Deloitte and the Institute of International Finance finds, “the CSO is emerging as the ‘sense-maker in chief’ in the organization“. This transition has made the CSO a critical player in shaping the future direction of the company. According to The Conference Board survey on 100 large US companies, ‘Nine out of 10 sustainability executives anticipate more responsibilities for the CSO in the coming years’.
In the past, CSOs were seen as “stealth PR executives,” tasked primarily with managing a company’s reputation around sustainability initiatives. However, today’s CSO is much more than a spokesperson; they are strategic leaders tasked with driving change across the entire organisation. They work closely with other C-suite executives to ensure that sustainability goals are not only met but aligned with the company’s broader objectives. The CSO at a Crossroads, a BSR report, find that 83% of CSOs report that collaboration with other C-Suite leaders is essential for achieving ambitious sustainability objectives.
Moreover, CSOs are now seen as change-makers who can effectively communicate sustainability challenges and opportunities to stakeholders, including investors, regulators, and employees. As a report from Deloitte and the Institute of International Finance finds, “the CSO is emerging as the ‘sense-maker in chief’ in the organization“. This transition has made the CSO a critical player in shaping the future direction of the company. According to The Conference Board survey on 100 large US companies, ‘Nine out of 10 sustainability executives anticipate more responsibilities for the CSO in the coming years’.
The BSR Report underscores the significant evolution of the sustainability field, from its early phase of widespread voluntary adoption between 2015-2018 to facing turbulence and scrutiny amid market criticism and economic crises in 2021-2022, and now advancing towards professionalisation and deeper integration by 2023-2024. The Chief Sustainability Officer (CSO) role is at a critical juncture and could evolve along one of three key trajectories:
- The Steady Manager: Primarily focuses on compliance and risk management, driving gradual improvements in sustainability practices.
- The Integrated Strategist: Embeds sustainability into the core corporate strategy, using it as a lever for business growth and competitive advantage.
- The Transformative Change Agent: Leverages sustainability to fundamentally reshape the company’s business model, prioritizing innovation and long-term resilience.
Each path offers a distinct approach to tackling the expanding challenges and opportunities that CSOs face in their evolving roles. The choice of direction depends on various factors, such as the company’s culture and the senior management and board’s perspective on sustainability. Key considerations include whether sustainability is viewed as a threat or an opportunity, whether the focus is on leveraging innovation to drive business model transformation, or if the company adopts a more compliance-driven approach to meet increasingly demanding regulations.
Strategic prioritisation and reporting lines for effective sustainability
The scope of the CSO’s role now encompasses everything from ensuring compliance with environmental regulations to leading sustainability initiatives that improve the company’s competitive edge. To balance competing demand and successfully embed sustainability into a company’s core strategy, it is crucial to establish clear ESG priorities. Whether it’s reducing carbon emissions, improving supply chain transparency, or enhancing diversity and inclusion efforts, CSOs must have a focused approach to sustainability. This begins by identifying the most critical ESG goals and aligning them with broader corporate objectives. ‘Narrowing the focus to ESG issues that are material to a company’s value creation represents an evolution in the CSO role’, says Matthieu Riché, who leads sustainability at the French retailer Groupe Casino.
No ESG topics are the same for an organisation. The prioritization of sustainability goals differs across organizations, depending on their ESG double materiality, business activities, strategic objectives, and key stakeholders. Global initiatives to enhance nonfinancial reporting support CSOs in pinpointing and effectively communicating the ESG issues most critical to their company’s performance. Organisations such as the IFRS Foundation’s newly established International Sustainability Standards Board, the European Financial Reporting Advisory Group, and the U.S. Securities and Exchange Commission are working to create more defined reporting frameworks.
Moreover, CSOs should report directly to the C-suite—ideally to the CEO—ensuring that sustainability remains a priority at the highest levels of leadership and that sustainability efforts are aligned with the company’s overall strategy and, the CSO has the influence needed to implement impactful initiatives.. Data from CSO Futures indicates that over 66% of CSOs appointed in Q4 2023 now report directly to their company’s CEO, highlighting the growing influence of this role. However, PwC discovered that many CSOs do not have adequate access to the board, limiting their ability to effectively influence and drive the sustainability transformation.
Regular reporting on sustainability progress, assessing materiality of ESG issues, transparent communication with stakeholders, and ongoing risk assessments are also vital for maintaining momentum and accountability.
No ESG topics are the same for an organisation. The prioritization of sustainability goals differs across organizations, depending on their ESG double materiality, business activities, strategic objectives, and key stakeholders. Global initiatives to enhance nonfinancial reporting support CSOs in pinpointing and effectively communicating the ESG issues most critical to their company’s performance. Organisations such as the IFRS Foundation’s newly established International Sustainability Standards Board, the European Financial Reporting Advisory Group, and the U.S. Securities and Exchange Commission are working to create more defined reporting frameworks.
Moreover, CSOs should report directly to the C-suite—ideally to the CEO—ensuring that sustainability remains a priority at the highest levels of leadership and that sustainability efforts are aligned with the company’s overall strategy and, the CSO has the influence needed to implement impactful initiatives.. Data from CSO Futures indicates that over 66% of CSOs appointed in Q4 2023 now report directly to their company’s CEO, highlighting the growing influence of this role. However, PwC discovered that many CSOs do not have adequate access to the board, limiting their ability to effectively influence and drive the sustainability transformation.
Regular reporting on sustainability progress, assessing materiality of ESG issues, transparent communication with stakeholders, and ongoing risk assessments are also vital for maintaining momentum and accountability.
Key responsibilities of a Chief Sustainability Officer (CSO)
A Chief Sustainability Officer (CSO) plays a pivotal role in overseeing and driving sustainability efforts within an organisation, ensuring that environmental and social initiatives are aligned with corporate objectives. Key responsibilities of a CSO include strategy development, which involves setting sustainability goals such as reducing carbon footprints or improving resource efficiency, and conducting materiality assessments to tailor initiatives to the organisation’s specific industry challenges. The CSO is also responsible for risk management, identifying and mitigating risks related to climate change and resource scarcity. Additionally, CSOs develop performance metrics to measure sustainability progress, ensuring that policies align with environmental regulations and stakeholder expectations. Clear communication is critical, as CSOs must keep stakeholders—including employees, customers, investors, and regulators—informed about sustainability efforts and challenges, while fostering stakeholder engagement to support and promote sustainability initiatives throughout the organisation.
Recommended skills for a Chief Sustainability Officer (CSO)
To effectively lead sustainability efforts, a CSO requires a diverse skill set. Leadership is essential for inspiring teams and driving initiatives, while strategic thinking ensures that sustainability goals are aligned with the organisation’s broader objectives. Stakeholder engagement and strong communication skills are crucial for building relationships and articulating sustainability goals to various audiences. Additionally, technical expertise in environmental issues, legislation, and industry trends, along with analytical skills to assess performance and make data-driven decisions, are key to navigating sustainability challenges. Effective risk management and change management skills enable the CSO to identify and address potential risks while embedding sustainability into the company’s culture and business model. Together, these responsibilities and skills ensure that the CSO can drive meaningful and lasting change within the organisation.
Challenges faced by Chief Sustainability Officers
CSO faces a host of challenges in executing their roles effectively, including navigating complex regulatory frameworks, addressing growing investor demands, and managing internal pressures to meet ambitious sustainability goals.
- Strategic alignment: Aligning sustainability goals with broader business objectives can be difficult, particularly when sustainability initiatives demand significant time, resources, or investment.
- Stakeholder buy-in: Resistance to change often occurs when sustainability efforts are perceived to affect the bottom line. CSOs must demonstrate the long-term value of these initiatives to gain stakeholder support.
- Resource allocation: Budgeting for sustainability is challenging when one department bears the costs but other areas of the business see the benefits.
- Regulatory changes: CSOs must stay informed about evolving local and international environmental regulations to ensure compliance across operations and supply chains.
- Measuring progress: Identifying and tracking relevant sustainability metrics across the organisation is critical but complex.
- Reporting: CSOs need to accurately report on sustainability efforts, ensuring compliance and transparency across Environmental, Social, and Governance (ESG) factors.
- Balancing short- and long-term goals: Sustainability efforts may impact short-term financial performance, and CSOs must highlight how these investments will lead to long-term benefits for both the company and its stakeholders.
The future of sustainability leadership
In conclusion, the role of the Chief Sustainability Officer is set to evolve and to grow in importance as businesses face increasing ESG demands, regulatory pressures, and stakeholder expectations. For companies that want to stay competitive in this rapidly evolving landscape, having a dedicated sustainability leader who can navigate complex regulations, align sustainability with corporate strategy, and meet the growing demands of stakeholders is no longer optional—it’s essential.
Companies that prioritise sustainability, embed it into their overall strategy, and empower their CSOs to drive change through resilience and innovation will be better positioned to thrive in the long run.
Companies that prioritise sustainability, embed it into their overall strategy, and empower their CSOs to drive change through resilience and innovation will be better positioned to thrive in the long run.
For organisations looking to find top-tier Chief Sustainability Officers or other ESG leaders, EnableGreen offers tailored executive search solutions. Contact us if your are looking to hire an experienced sustainability leader who can drive long-term success.
A CSO is responsible for overseeing and driving sustainability initiatives within an organisation, ensuring they align with broader business goals.
The CSO ensures that sustainability is a core part of a company’s strategy, driving long-term profitability and ensuring compliance with ESG regulations.
Responsibilities include setting sustainability goals, managing risks, engaging stakeholders, and ensuring the company complies with environmental regulations.