The fate of climate action lies in the hands of the C-Suite

As businesses experience rising pressure from customers, investors and sustainability regulations, it’s critical that the collective C-Suite takes responsibility for driving climate action. Whichever individual is accountable for implementing and supporting climate measures, business leaders play a vital role in supporting a business in achieving its climate goals.

A C-Suite committed to green measures creates a strong message to investors and other stakeholders that a business is serious about climate action. Expecting a chief sustainability officer (CSO) to be solely responsible for the climate strategy of a business is no longer more. Companies that continue to embrace this way of thinking will find it increasingly difficult to integrate a clear and actionable climate strategy. The entire leadership team should take responsibility and individual ownership of supporting climate action within separate areas of an organisation. 

Securing the combined experience and intelligence of the complete C-Suite provides businesses with a higher chance of tackling the challenges of reaching net zero. For any organisation, change will have the most impact when it receives the full support of the leadership team. CEO’s have the power to drive the right direction towards implementing and driving climate action. Showing strong support towards emissions reduction and prioritising climate and sustainability strategies will influence the entire organisation, inspiring other employees to follow the same path. Creating this connection between business leaders and employers strengthens green strategies and positive climate action.

CEO’s also have the responsibility for ensuring their climate strategy is connected with their overall business strategy. This is critical to reducing any loss of confidence from stakeholders, minimises possible distractions for the leadership team and enables a business to build an assured brand for current and potential investors.

CSOs continue to play a critical role in building a climate strategy, measuring industry developments and adapting ESG strategies as required. They focus on determining areas for environmental enhancements within a business, assessing emissions and liaising with stakeholders about business priorities. 

By working closely with the CEO, CSO can have a more effective and impactful role on climate strategies and inform the entire business about the vital role everyone plays in taking climate action.

Other industry professionals like Chief Financial Officers (CFOs) are becoming increasingly important in supporting businesses stay connected with significant climate measures. Similar to measuring financial data, CFOs have the necessary skills and experience to manage additional financial reporting processes.  Measuring and auditing climate data is important to reduce potential reputational damage and avoid any non-compliance penalties. CFOs are critical in the decisions made that are associated with investing in decarbonisation plans and providing the necessary resources to enable this to progress. They have a critical role in delivering a strategy that incorporates the long term economic and environmental benefits of investing in low carbon plans, while minimising the potential short-term costs. 

It’s clear that harnessing climate data is required across all business areas, whether this is reducing the environmental impact of the supply chain or providing the required budget to initiate decarbonisation. The increased pressure of new sustainability measures and rising public scrutiny means companies must adapt their business models to succeed in the long term. This green transition has to start within the business core and requires strong leadership and collective action from the C-Suite.