With rising pressure from customers, employees and stakeholders to tackle environmental issues, is having a dedicated sustainability officer now mandatory for organisations?
The urgency associated with climate change impacts businesses as they come under mounting pressure to incorporate sustainability into their corporate agenda. This has created a rising demand for Chief Sustainability Officers (CSOs), with more hires in the last year than in the previous five years combined, according to PwC.
Despite a rise in CSO roles, they’re not considered mainstream hires. Over 50% of Fortune Global 500 companies have yet to place a CSO in their organisation. This is partly due to a lack of knowledge of what the role entails and a broad recognition that business leaders should collectively own ESG. Being a relatively new role, finding the right individuals with the skills and experience to implement real changes is also quite challenging.
Other industry leaders emphasise that with the right resources and authority, a CSO can enhance the sustainability progress of a business. Studies suggest that companies with a CSO will achieve their net zero goals three years quicker than those who decide not to hire a CSO. As sustainability rulings become more complicated with new regulations and reporting requirements emerging, now must be the time for businesses to seriously consider hiring a CSO.
One role for Sustainability or take collective action?
For some industry leaders, it’s clear that there is an expectation for companies to show green credentials and it’s essential for businesses to support both sustainable performance and financial success. However, some leaders believe that the responsibility and accountability for strengthening ESG lies with every executive and shouldn’t come down to one individual. Some leaders believe that the significant and rapidly evolving nature of sustainability means it can be an overwhelming responsibility for one executive leader.
Sustainability span across many business areas, and requires specialist knowledge and skills in each field. As such, leaders within the C-Suite should be responsible for managing and shaping the best sustainability practices within each area.
ESG should be operating across an entire organisation, with opportunities and challenges tackled by each team individually. This will enable ESG to be embedded into the overall strategy and daily activities. Achieving this begins with taking collective ownership of ESG within the C-Suite.
In contrast to these opinions, other leaders believe that sustainability is too vital to be split across multiple roles or various leaders. To deliver real progress, sustainability requires a singular voice that isn’t influenced by other priorities. This isn’t to say that other executives are not promoting or supporting sustainability plans, but it gives an individual dedicated to this area.
If an organisation is looking to hire a sustainability leader, they must ensure and be willing to give them the authority to implement change. Without the ability to drive changes, an organisation will not look like they’re taking their climate commitments seriously. It’s critical to recognise the role and expectations, including clear sustainability deliverables.
Hiring a CSO isn’t about delivering a quick win or used for strengthening a brand reputation. It’s an opportunity to show your commitment to sustainability, by enabling a CSO to have the power to deliver to change.
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