The pandemic along with its social and economic impact made global decision-makers, investors, and leaders pay urgent attention to sustainability and ESG factors. In addition to driving positive social and environmental change, sustainability boosts overall organizational health. Multiple global studies have shown us that there is a direct relationship between prioritizing sustainability and business performance. The collective benefits are indisputable, making it essential for every business, large or small, to examine and set up its sustainability strategies. This is where a “Chief Sustainability Officer” comes in.

Understanding the evolving role of a CSO

As organizations go deeper into what sustainability means for them, the better they understand the role of a CSO. With ESG increasingly gaining importance, the role of sustainability leaders today is expanding - from addressing environmental/ climate risk to social and economic injustice (including human rights, employee welfare, gender equity, and inequality) the current generation of CSOs is required to drive a positive impact on all these issues. Today CSOs are appointed to build the future resilience of a company by driving key business decisions from a sustainability lens. The task at hand is vast and possible only through collaborative efforts across the C-suite, and of course, employees.

While the rising investor focus on ESG factors is a big reason why organizations have CSOs on their team, another equally important reason is the new generation of talent entering the workforce. Organizations are being held accountable, and rightly so, by all of their stakeholders - which includes employees. This has directly impacted how CSOs are hired. Not too long ago, CSOs were internal hires, some with communication or marketing as their core skills. Today’s demands are different. Businesses need someone equipped and trained to drive sustainability strategy and change.

Hiring does not equal action

The rise in the number of CSOs appointed across the world shows us that companies are moving in the right direction. However, there is still a huge gap when it comes to understanding and implementation.

Despite all the ongoing positive changes, one of the most nagging challenges facing CSOs is the absence of a level playing field. Most business decisions are made using a cost versus return approach. Investing in environmental and social change may be seen as a compromise on returns. We believe this is where sustainability literacy makes a difference. While everyone at the table knows that there is an increased focus on ESG factors, it is important that they also comprehend exactly how this enhances financial performance and makes business sense. The benefits of putting sustainability at the core of all corporate strategies are manifold – from increasing profits to improving a company’s reputation and making them more attractive to new and existing talent. Organizations truly committed to sustainability need to strengthen their understanding of it.

The power of change

As an individual, it is natural to feel overwhelmed when trying to action meaningful change. Fortunately, change feels a lot more possible and powerful when put into effect as a collective. Teamwork is critical.

Imagine the impact when the most innovative and successful minds in an organization come together to solve business, environmental, social, and governance challenges. Take for instance the tech giant, Amazon, which introduced sustainable packaging across markets with the help of AI. Blending innovation with sustainability to make decisions that are better for the business, brand, consumers, and the environment. Collective effort is what drives long-term change, and it is time that companies realize that.

Parting thoughts

Once criticized for being a glorified marketing position with little influence over corporate policy, the role of a CSO has come a long way. But the long-term vision must be broader. ESG-indicators, training, and targets need to be weaved into every role, across departments and designations. CSOs carry the specific responsibility of paving the way for others in the organization, constantly and constructively challenging the approach to sustainability in business.