The rise of sustainability is supporting more women in C-Suite roles

Recent reports suggest the importance of female business leaders in driving higher levels of success and how elevated sustainability roles have opened opportunities to the C-Suite for women. 

Numerous studies indicate that having more women in leadership roles is the best way for a business to increase profits, continue innovating and achieve climate and sustainability goals. Despite this finding, the latest Global Gender Gap report from the World Economic Forum suggests that only a little over 30% of senior leadership roles are held by women. While there’s been progress, the rate of change is slow, but the increased attention on sustainability is helping create a new wave of women moving towards the C-Suite. 

The rise of the CSO role has considerably impacted the key elements of the C-Suite in the last few years and gender imbalance – as more businesses prioritise the sustainability leader role, which is often taken by women.

Sustainability as a path to leadership 

Until recently, the role of a sustainability leader was often excluded from key decision-making, but today is as critical to shaping the plans of an organisation. Studies from Climate Impact Partners in 2023 discovered that 43% of Fortune 500 companies have a CSO or equivalent. In 2020, this figure stood at only 19%. CSOs are now operating at the C-Suite level and in direct line with the CEO. As a path towards leadership, sustainability enables more women to progress quicker than in other business areas. It’s positive to see more women in the C-Suite and while no definitive path exists between a CSO and CEO, this will likely evolve as sustainability becomes increasingly synonymous with business success.

When observing the C-Suite, female representation is only 25% on average, compared to 46% for entry-level positions. More women in senior leadership roles, like CSOs, is significant progress.

The movement towards sustainability and social responsibility drives change in female leadership and diversity. There are several reasons why this change in corporate values may create more opportunities for women in leadership roles. Many women move towards companies that align with their values, especially those associated with sustainability and social responsibility. As businesses prioritise these values, they become more appealing to female talent, creating a more diverse leadership group focusing on inclusivity.

Furthermore, prioritising sustainability typically requires a change in corporate culture towards long-term success. This shift facilitates the need for varied leadership styles and the opportunity for women to participate. Businesses focusing on sustainability are more likely to embrace diverse leadership as it corresponds closely with the approach required for driving sustainability plans.

As the importance of ESG continues to grow and sustainability becomes embedded into the core of company strategy and culture, there will likely be a rise of women to senior leadership roles. This movement requires businesses to recognise the significance of diversity and actively show this through committed actions.

While the position of CSO provides a possible pathway to the C-Suite for more women, similar routes must emerge in other leadership roles. Creating opportunities to offer mentorship and advocating for women and diverse voices is vital to enhancing this pathway. The increased emphasis on ESG and DEI highlights the need for more empathetic leadership. Women often show strong interpersonal skills and emotional intelligence, putting them in a position to thrive in leadership roles that need someone to understand and manage diverse stakeholder requirements.

To conclude, the changing landscape that prioritises empathy in leadership corresponds with the many qualities female leaders have. This movement creates an opportunity for women to support further strategies for ESG and DEI and rise to leadership positions where their empathetic leadership style can facilitate positive changes.