Why do we need a Chief Sustainability Officer?

Imagine this - you’re the owner of a small factory in the 1890s and you’re in a tough spot.?Should the factory ditch the steam engines and get plugged into the first electrical power system?

At first glance, it does seem like a good idea. It’s cheap, it promises efficiency, and it’s said to be the future. But who is the best person to advise on this decision? No one knows how to purchase the system, what to look out for, how to ensure its consistent supply, or the best way to explore its potential.

Cue the arrival of the Chief Electricity Officer. At that point in time, every corporation needed a Chief Electricity Officer to advise them on this matter. Those that seized the opportunity flourished, and those that didn’t had their kodak moment. Although the challenges that we face now are of a different nature, the changing world in which we live and work in suggests that the advent of the Chief Sustainability Officer (CSO) is here, and we are all pioneers of this new age.

The lesson to be learnt from this example of the Chief Electricity Officer is that specialist board positions are often created during times of disruption. These positions are associated with strategic opportunity and risk, and they’re here to help senior management understand the changing landscape. This is no different from the advent of the CSO in this time of change. Their importance is actually not entirely found in their title, but rather, it is in their position within a firm - a position of power to influence business decisions and to come up with innovative strategies.

Today, an increasing number of companies are seeing strategic opportunities in a sustainable world, prioritising it within the corporate agenda, and bringing it to the attention of the board. For many companies, this means appointing someone whose dedicated responsibility is to make sure that the company can understand and deliver an effective business strategy to address sustainability concerns and opportunities.

CSOs are expected to ensure that their company delivers on its sustainability goals, whilst at the same time reviewing the company’s management of its impacts and risks to reputation. Their role doesn’t stop there, though, with a focus on areas of strategic importance and exploring activities that will make a significant difference to a company’s value. This may include the acquisition of companies that have a competitive lead in similar markets, new financing opportunities, and achieving energy efficiency. As for revenue generation, developing products and services for markets associated with a sustainable society is key, as well as improving sustainability credentials for existing products and services.

The role of a CSO is continuously evolving, and as an increasing number of governments and corporations recognise the importance of sustainability goals, we are already witnessing sustainability strategies being weaved into their core functions. If we think the role of the CSO is important now, we’re just witnessing the start. A CSO will not only have increasing environmental and stakeholder issues to juggle; they will also be managing specialised teams based on industry trends.

While we may not need Chief Electricity Officers anymore, the role of the CSO is a lynch pin for humanity’s transitions to a sustainable and equitable world.