Unlocking the Next Wave of Economic Growth: The Role of the CSO

Today, the transition to a greener economy is not just an idea, it is an imperative. The logic is simple: without the bare minimum of livable conditions, no amount of technology or wealth can make it for anyone.

In 2022, during the hottest summer on record in Europe, approximately 62,000 people died from heat-related causes. In Japan, more than 70,000 people sought emergency medical attention for heat stroke this July and August alone. A 2024 report of Texas 2036 found that from 2019 to 2023, the number of days above 100 degrees Fahrenheit in the south-central U.S. is around 38, more than double the number from 2014 to 2018, and more than six times the number from 1974 to 1978.

The impact? Increased wildfire risk, drought severity, urban flooding, rainfall intensity, and sea level rise, which also coincides with rising greenhouse gas concentrations reaching record highs. ILO report indicates that rising temperatures and environmental degradation will have a negative impact on employment and working conditions, with an estimated loss of 72 million full-time jobs by 2030 due to heat stress.

A shift to a greener economy is not just imperative, it can actually unleash a potential new wave of economic growth and job creation that is more sustainable for all. It is predicted that 24 million new jobs could be created worldwide by 2030. The role of the Chief Sustainability Officer is critical to unlocking the value of this new wave of economic engine. Yet many companies have a misconception about it.

Demystify the CSO role

Historically, CSOs have been relied upon primarily to communicate the company's sustainability efforts and achievements to the public, more like a PR executive. And in some companies, this is all they do, telling an appealing story about the company's initiatives to investors and the media. But this is the wrong use of the CSO role, and certainly overlooks its greater potential.

The true role of the CSO is to devise and hammer out, from strategy to execution, a way to turn a company's sustainable vision into reality, covering environmental, social, and governance aspects.

By bringing expertise in the following 3 initiatives, CSOs can set an example that truly positions an organization to lead and benefit from this new wave of economy growth.

#1 Building Awareness and Commitment

A key role of the CSO is to help the company align its vision with sustainability and consciously pursue more sustainable success. This requires interaction with investors and stakeholders to communicate the current reality and shift in economic status, as well as the long-term benefits of such a vision, which for some companies still requires work to arrive at a more systemic perspective. In addition, you need to foster a culture of sustainability within the organization so that such initiatives gain broader support throughout the organization from the outset.

Sustainability is not just about avoiding risk, reducing costs, or responding passively to regulatory scrutiny or consumer pressure; it is a new area of business growth. More and more consumers are looking for environmentally friendly products and services.

The CSO could lead the company in building the right awareness and then establishing a firm commitment throughout the organization for sustainable success.

#2 Strategic Rewiring

With the right level of awareness, the right strategy will follow. Sustainability strategy is more than just a company's own product or material recycling, waste reduction, or energy consumption; it is the company's sustainable footprint in all of its value chains. This includes how it operates and manufactures its products, how it sources raw materials and designs the packaging of its goods, how it treats its own employees and serves consumers.

For example, the current e-commerce platforms are found to cause more plastic waste and over-packaging from multiple folds. On the supply chain side, sourcing goods from cheaper but distant locations requires long-haul trucking that burns more fuel than sourcing from locals. And on the user interface front, the gamification scheme of some of these apps to keep consumers' attention so they buy more of the products creates addictive behaviour. Some even use unfair tricks to entice more purchases with the false promise of giving away "large sums of money”.

Sustainability has many aspects and requires an overhaul of the company's strategy on several fronts. It covers not only the financial aspects, but also the non-financial, soft issues, such as user experience, human rights, fairness and ethical concerns.

#3 Transparent and Effective Measurement

The lack of transparent reporting on sustainability actions and the void of consistent measurement over time can undermine sustainability efforts for all. It is no longer the time for CSOs to focus only on short-term sustainability buzzwords. They need to establish a rigorous governance and measurement structure to collect data over a long period of time and compare data to measure effectiveness and devise a rigorous methodology to reflect and improve. This requires transparency in the process, and a mechanism for feedback to help the organization continuously improve. It's an ongoing process that needs to be tracked and reflected upon continuously.

Conclusion

The role of the CSO is gaining momentum. Contrary to the old notion of a role equivalent to PR, CSOs are critical to driving an organization's sustainable growth, thereby unlocking the hidden value of a greener economy. To achieve greater impact, CSOs need to build awareness and commitment, rewire strategies and governance structures to truly transform organizations to win in the future.

Some may think that such a role is temporary, and may become outdated when organizations completely incorporate sustainability into their strategies and operations. I believe the role of the CSO is here to stay because sustainability is an ongoing process and the ultimate goal that all human beings strive to achieve in the long run.

Leaders, do you have the right CSO to lead this transformation of your organization?

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About Jing Yan

Jing Yan is an experienced executive recruiter and coach who has helped many leading multinational companies recruit and coach executives around the world. She is passionate about inspiring leaders at all levels to grow to the next level of their careers and purpose in life through the cognitive coaching methodology.

Jing is the founder of C-Level Hire, a recruiting and coaching firm that applies critical thinking to executive recruitment and develops high-impact leaders in organizations.

Jing promotes critical thinking and leadership to enhance decision-making and create a culture of fairness and transparency within teams and groups.

She encourages individuals and organizations to embrace these principles in order to make impactful decisions that benefit the wider community, fostering innovation, progress, effective leadership, and diversity for a sustainable future.