The power and influence of a CSO on the future of sustainability

EY identified the transformational CSOs as agents of change and those more likely to convert climate plans into action. In the last few years, the responsibilities of the Chief Sustainability Officer (CSO) have shifted from the corporate background to the core of business strategy. Amy Brachio, the Global Vice Chair of Sustainability at EY, believes that CSO must be strategically positioned in a company and empowered to hold other business leaders accountable.

The role of the CSO has progressed into one that is much more strategic, shifting from corporate social responsibility plans to definitive sustainable value creation. The transition highlights the increasing importance of sustainability in an organisation beyond regulation and compliance. Brachio explains in the 2023 EY Sustainable Value Study that CSOs focus on determining the sustainability issues that significantly impact financial performance and risk.

The report suggests, however, that CSOs in sustainably dedicated companies are challenged, due to the slow rate of progress on climate action and lack of collaboration between other teams. These factors are impacting the level of satisfaction for CSOs. EY data suggests only 17% of CSOs are very satisfied in their positions, and 42% stated they lack commitment to staying with their employer.

As we continue embracing economic and geopolitical challenges, business progress on climate action has slowed. CSOs are securing less spending but experiencing rising pressure from C-Suite leaders for short-term measures and results. The EY study of CSOs reported an average decline in emissions of 20%, down from 30% in a report of last year, along with a declining number of actions companies are taking associated with climate change to 4, from a previous average of 10. This year, only 34% stated that their business intends to increase spending to tackle climate change in the year ahead, compared to 61% in the previous year. Brachio highlights that considering the geopolitical tensions, sustainability leaders are experiencing significant challenges with resource allocation. Their role becomes even more complex, considering that 46% state they lack the authority to hold C-Suite associates accountable for their performance on sustainability plans, and this is where the transformational CSO comes into play.

The EY report suggests that the transformational CSO can translate climate commitments into action. Businesses with transformational CSOs are typically more committed to climate impact reductions, with over 50% expecting to increase investment over the next year and increase emission reductions. A transformational CSO is more satisfied and less likely to leave their role.
What defines a transformational CSO?

EY research suggests that an individual’s background is selected to lead a sustainability agenda, and how they move into this role significantly influences their ability to have a positive impact. EY describes this individual as a leader who can influence, negotiate and is capable of listening. Transformational CSOs can drive change at scale and play a critical role in defining strategy and actively engaging with shareholders, investors and customers.

Dr Lutz Hegemann, the President of Global Health & Sustainability at Novartis, explains that you need an individual with a strong business understanding, rather than creating a sustainability strategy and a business strategy, you want a sustainable business plan. It’s not just about having a CSO with the necessary background. It’s also about how a CSO is empowered by the C-Suite to move forward with the plan.
As sustainability leaders play an increasingly critical role in managing the challenges of shifting to climate action, Brachio believes it imperative to