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Redefining the role of the CSO

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Role definition

Chief Sustainability Officers (CSOs) play a crucial role in driving organizational change, but they face numerous challenges. The lack of a universally accepted definition for sustainability has led to a wide range of job titles and responsibilities. This can result in internal confusion over remit, lack of ownership, and resulting inefficiencies.

Blurred reporting lines

The Weinreb Group’s Chief Sustainability Officer Report (2011-2023) has highlighted considerable shifts in the reporting structure of CSOs within U.S. companies during this period. Around 34% of CSOs reported directly to the CEO, while two-thirds reported to executives who were two levels below the Chief Executive Officer. CSOs reporting to marketing leadership decreased by 100%, and those reporting to finance decreased by approximately 82%. In contrast, there was a significant increase of about 180% in CSOs reporting to the general counsel. Furthermore, there was a notable growth of about 62% in reporting relationships with ESG, supply chain, and investment relations. These changes suggest a broader integration of sustainability into core corporate governance and operations, reflecting the increasing importance of ESG considerations.

So what?

The shifting dynamics demonstrate the changing role of CSOs in organizations, highlighting their increasing influence and strategic significance. These changes have created a new era of ‘Empowered CSOs’ who report directly to the CEO. EY's research also reveals that 58% of CSOs now meet with their C-suite executives on a monthly or quarterly basis, highlighting their strategic importance in driving sustainability initiatives. This shift has important implications, as Empowered CSOs typically have greater access to decision-making information, demonstrate a stronger commitment to public sustainability commitments, and excel in achieving ESG goals. The presence of Empowered CSOs emphasizes the growing integration of sustainability into corporate strategy. It signifies a deeper commitment to sustainability within an organization, prompting B2B partners to adapt their strategy accordingly. Partnering with businesses led by Empowered CSOs can foster more impactful collaborations that closely align with the strategic objectives of both entities.

Source: Weinreb Group, Harvard Law School Forum on Corporate Governance, EY

About the authors

Kebrina Robinson

B2B Group

The B2B Group is a specialist unit within EssenceMediacom focussed on delivering business-to-business marketing solutions in an increasingly complex marketplace.