To gain true relevance, the CSO must be involved in the organization at a high level.
For Industry Week
Photo: Dreamstime
For the past 10 years, the emerging roles of chief digital officer and chief data officer got all the attention. That trend has passed, however, and the new focus is on sustainability and ESG (environmental, social and governance) management.
While investments in digital transformation are still robust and growing (over $1.3 trillion per year on average, according to IDC), investments in social and sustainable development are exploding.
The main driver behind this new investment wave is compliance with the complex sets of federal and international rules and regulations coming our way. As a result, by 2022, 95 of the Fortune 500 companies had a chief sustainability officer (CSO), and the number of sustainability officers tripled in 2021 alone.
But to gain true relevance, this relatively new role must evolve beyond internal measurement and governance. It needs to be much more connected to strategic go-to-market areas, focusing sustainability efforts on financial impact and growth.
The CSO should be involved in the organization at a high level in these additional areas:
Business modeling: The CSO, chief innovation officer and chief digital officer must work together to bring forth state-of-the-art technology and progressive initiatives to support the sustainability agenda. Internally, this group must work together on gathering the right data to automate ESG reporting. Externally, they must bring in advanced sustainability technologies and science in the form of new business models and/or start-ups.
