What Chief Sustainability Officers Do

Yesterday, I had an interesting conversation with a senior executive of a company about the essential role of sustainability in business. We discussed why it is crucial to have a dedicated leader, such as a Chief Sustainability Officer (CSO), to drive sustainability initiatives within an organisation. As I described the numerous responsibilities and areas impacted by a CSO, he was genuinely surprised by the breadth and depth of their role. This realisation inspired me to write an overview of the key functions and contributions of a CSO and show how integral they are to sustainable growth of a business. Here is a list in no particular order:

Strategy and Leadership

A Chief Sustainability Officer prepares a sustainability vision aligned with the company's core values and integrates environmental, social, and governance principles into the business strategy. They lead either a dedicated or cross functional sustainability team, champion sustainability initiatives across the organisation, and manage a portfolio of projects to ensure long-term sustainability goals are achieved.

Stakeholder Engagement

CSOs identify and engage with key stakeholders, including investors, employees, customers, suppliers, and communities. They organise forums to encourage collaboration and drive initiatives.

Compliance and Risk Management

The CSO monitors evolving ESG legislation to ensure compliance with legal and regulatory requirements. They conduct risk assessments, implement compliance measures, provide guidance on ESG risks, and regularly update company policies to address emerging sustainability challenges and opportunities.

Environmental Stewardship

The CSO leads efforts to minimise the company’s environmental impact by focusing on reducing the carbon footprint, enhancing energy efficiency, responsibly managing waste, optimising water usage, and promoting biodiversity projects.

Social Impact

The CSO promotes social responsibility by improving labour practices, enhancing community engagement, supporting employee well-being, and promoting social equity. These efforts ensure the company contributes positively to society and maintains a responsible corporate image.

Economic Sustainability

The CSO guides sustainable business practices that balance economic growth with environmental and social responsibility. This includes promoting ESG investing, encouraging ethical practices, and evaluating the company’s ESG performance to ensure long-term economic sustainability.

Innovation

Collaborating with the research and development team, the CSO encourages sustainable innovation and the development of eco-friendly products. They implement design thinking and promote creative solutions to improve the company’s sustainability performance, ensuring that sustainability is at the heart of product development.

Sustainable Supply Chain

The CSO promotes responsible sourcing and works with procurement teams to evaluate suppliers’ sustainability performance. They work to reduce logistics emissions, implement circular practices, and enhance supply chain transparency, ensuring that sustainability is embedded throughout the supply chain.

Organisational Development

The CSO develops sustainability education programmes for employees, providing green skills training and promoting a culture of sustainability. They encourage employees to become sustainability champions and facilitate ESG certifications to ensure the company’s workforce is equipped to support sustainability goals.

Collaboration and Partnerships

Initiating partnerships with NGOs, academic institutions, and other external organisations, the CSO leverages these collaborations to enhance sustainability initiatives. They engage in ESG networks and utilise research to stay at the forefront of sustainability trends and best practices.

ESG Reporting

Regular publication of ESG reports is a core responsibility of the CSO. These reports adhere to standards like the GRI, SASB or upcoming CSRD, providing insights into the company’s sustainability performance and progress.

Performance Monitoring

The CSO sets ESG performance KPIs and uses sustainability software to monitor progress. Conducting regular ESG audits helps identify areas for improvement and ensures that sustainability is embedded in every aspect of the organisation, driving continuous improvement and accountability.

In conclusion, the role of a Chief Sustainability Officer is dynamic and multifaceted, requiring a blend of strategic vision, leadership, stakeholder engagement, and innovation. By integrating sustainability into every aspect of the business, the CSO plays a crucial role in shaping a sustainable future for the organisation and the broader community.