Heidrick & Struggles: Businesses are seeking an ‘influx of fresh perspectives’ to accommodate sustainability demands
Although 86% of Europe’s top 250 countries have a dedicated CSO, a new report from Heidrick & Struggles found that the role may be in decline – but not for the reasons you may initially think.
The role of Chief Sustainability Officer has grown in demand over the past few years. But what does the future look like for businesses to accommodate this position?
A new report from Heidrick & Struggles – which generated an annual net revenue exceeding $1 billion for three consecutive years – found that having a dedicated CSO may be becoming a thing of the past.
In an exclusive interview with Rafe Jackson, Partner at Heidrick & Struggles, UNLEASH discovers why this may be, and what the future may have in store for CSOs.
The report also found that the role of CSO may eventually disappear altogether – not because it’s not an integral part of a business, but because sustainability is becoming so embedded in business strategy that it might no longer require a standalone role.
In an exclusive conversation with Rafe Jackson, Partner at Heidrick & Struggles, UNLEASH gets the inside scoop.
CSOs are becoming ‘leadership connectors’ making them ‘indispensable’
Heidrick & Struggles’ report found a rapid increase in demand for CSO from 2019 – when 83% of appointments were made.
According to Jackson, this signals that businesses are seeking an “influx of fresh perspectives” to tackle urgent environmental challenges, such as net-zero commitments and stricter regulations.
“What we can take from this is companies are reframing sustainability from a compliance burden to a strategic growth driver, linking sustainability initiatives directly to revenue,” Jackson highlights.
“While the point above stands, I believe CSOs will become key architects of sustainable transformation amid mounting pressure from stakeholders, regulatory bodies, and markets.
CSOs are evolving into ‘leadership connectors,’ adept at orchestrating ecosystems, driving organizational change, and embedding sustainability into every facet of the business with, and through, others.”
This, Jackson believes, is down to their ability to align sustainability with strategic goals, making them “indispensable” in navigating future challenges, such as climate resilience and green innovation.
“It goes without saying that sustainability is no longer optional – it’s foundational to long-term competitiveness,” Jackson adds.
“Companies that excel in this space are leveraging their CSOs to reimagine their business models, linking purpose with profitability.”
What are the key points business leaders should take from the report?
Today’s CSOs are referred to as the “changemakers” by the Heidrick & Struggles report – but where does this leave their future?
For Jackson, this means that business leaders should be prioritizing embedding sustainability into their core strategy and operations, by recognizing sustainability is, or can be, a driver of value – therefore it should not just be a compliance exercise.
What’s more, the report underscores the importance of strong leadership commitments, with direct involvement from the CEO and executive team being critical for success.
“Leaders should focus on agile talent strategies, addressing the ‘green skills’ gap by upskilling their workforce and recruiting multidisciplinary experts who blend business acumen with sustainability expertise.
Furthermore, businesses should transition sustainability from a siloed function to an integrated, company-wide responsibility.”
In doing so, Jackson explains, leaders will be able to align their sustainability goals with financial incentives. Additionally, by acknowledging the CSO as a strategic partner, leaders can turn sustainability into a competitive advantage.
“Storytelling and transparent communication are essential; a compelling sustainability narrative can galvanize employees, attract customers, and enhance confidence, solidifying the business’s role as a changemaker,” he concludes.
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