The Rise of Chief Sustainability Officers: Change Catalysts in The Boardrooms and Beyond
Image from Unsplash by Mert Guller
The role of Chief Sustainability Officers (CSOs) has evolved significantly in recent years. CSOs are primarily responsible for environmental compliance and reporting. However, as issues around environmental, societal and governance impacts have become more important to businesses and nonprofits, the role of the CSO has expanded to include a wider range of responsibilities.
We spoke to Christine Uri, who served as the General Counsel and Chief Sustainability Officer at Engie Impact. She has over a decade of experience in the legal and sustainability fields. Christine is a passionate advocate for environmental, sustainability and governance (ESG) causes and believes that businesses have a responsibility to think beyond profits.
So what exactly does a CSO do?
Christine Uri is an In-House ESG Counsel, and a former CSO
“CSOs draw attention to the sustainability angle across business functions. It is vital to integrate environmental and social issues into organization-wide business decisions and processes. This is not something that siloed functions like marketing or finance can tackle alone. We need to go further than ever before.” Uri says.
CSOs often report to the top leaders in the organization. They are responsible for developing and implementing sustainability strategies, managing sustainability risks, and engaging with stakeholders on sustainability issues. They also play a key role in driving innovation and developing new sustainability solutions through-out an organization.
CSOs play a critical role in helping businesses achieve their sustainability goals and make a positive impact on the planet.
Here are some of the key responsibilities of a CSO:
Develop and implement sustainability strategies with business leaders
Manage sustainability risks to businesses
Engage with stakeholders on sustainability issues
Drive innovation and develop new sustainability solutions
As sustainability becomes increasingly important to businesses, the demand for CSOs will continue to grow. CSOs who are able to develop and implement successful sustainability strategies will be in high demand.
What are the Key Competencies needed in a CSO?
Ellen Weinreb, has spent the past 15 years placing chief sustainability officers (CSOs) at global companies. In 2011, her company, Weinreb Group found only 29 people held the CSO title. This number has risen six-fold. The 2023 Chief Sustainability Report shares that today 183 U.S public companies have a CSO.
The Sustainability officers interviewed in the report mention that CSOs need to be like “Corporate Chameleons” - bringing in consciousness about sustainability issues and helping to move the needle while working with core business functions.
They need to figure out the opportunities and formulate an actionable strategy for sustainability. They must be able to stay up-to-date on sustainability trends and best practices, and incorporate them into the organization's sustainability strategy.
Most importantly, they need to be able to communicate this strategy, vision and impacts in clear business terms to internal and external stakeholders. The CSO role requires the leaders to look at the longer term implications of business decisions while balancing the short-termism.
The Future of Chief Sustainability Officers
It is not all smooth sailing for CSOs. Businesses are operating in a complex environment that is moving towards greater transparency and accountability towards issues like climate change. “We notice that investors, stockholders, employees, and customers are all pressuring corporations to announce commitments to reduce their impact on climate. Being carbon-neutral or hitting net-zero- confusion abounds in what these terms actually mean. We see this rising trend, particularly in the US, where greenwashing claims are making headlines. If communication is not accurate and legally compliant, “greenwashing” is a severe risk to any company's branding and reputation.” informs Uri.
“Companies can be liable to legal action if they are found to make false claims regarding sustainability or exaggerate their involvement in environmental or social causes.” she pointed out. We saw several of these examples recently- Delta Airlines claimed they are the world’s first “carbon-neutral airlines” or Oatly claimed their water consumption was lower than dairy milk, and how they were a more sustainable option for consumers.
In this context, CSOs need to stay clear of claims but measure true impact, be hyper-aware, and be swift in taking actions that are in line with legal requirements. They have to understand the ever-changing regulatory environment and be in-step with the law. They need to be in-sync with marketing, investor relations, finance, products, engineering and legal functions. “Knowing about environmental and social issues is just a start, a CSO is really about being a holistic leader and a changemaker.” Uri concludes.
To learn more about the role of CSOs, here are some more recommended articles to read:
"The Role of the Chief Sustainability Officer" by the World Business Council for Sustainable Development
“The Evolving Role of Chief Sustainability Officer” by Harvard Business Review
“The 8 Responsibilities of Chief Sustainability Officers” by Harvard Business Review
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