Data from the Refinitiv and PwC Strategy & Research report 'Empowered Chief Sustainability Officers' highlights a notable rise in CSO appointments. Between 2020 and 2021, 394 CSOs were appointed, matching the total from the previous eight years (414 from 2011 to 2019). This surge underscores a growing focus among investors and CEOs on addressing critical issues like climate change and social equality.
The World Economic Forum's Global Risks Report 2023 further supports this trend, identifying "Failure to mitigate climate change" and "Failure of climate-change adaptation" as top 10-year risks. This emphasizes the increasing importance of integrating sustainability into corporate strategies. CSOs are essential in guiding organizations through complex ESG (Environmental, Social, and Governance) challenges.
While the prominence of CSOs is rising, their influence varies widely by region and industry. North America and Europe lead with the highest number of active CSOs, whereas the Middle East and Asia are trailing.
According to a recent EY Global Risk Survey, 66% of boards believe environmental sustainability is crucial for enterprise resilience, highlighting the significant influence CSOs have within company structures.
Despite this, the Refinitiv and PwC Strategy report reveals that only 30% of CSO positions are highly influential, with direct access to senior leadership and substantial control over ESG strategies. The remaining 50% are 'light CSO' roles with more limited responsibilities and influence, while one-fifth of the companies had no CSO at all.
This variation in CSO roles mirrors the diverse priorities of organizations. Companies are either appointing proactive CSOs with extensive responsibilities or opting for 'light CSOs' focusing on specific initiatives. Industries such as Consumer Packaged Goods (CPG), Chemicals, and Oil, known for significant environmental impacts and intense regulatory demands, tend to have more robust CSO roles. These positions are critical in navigating complex regulatory landscapes and public expectations.
Sources: PricewaterhouseCoopers (PwC), Refinitiv, Reuters, EY, World Economic Forum
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