While some progress has been made in integrating sustainability, many companies have an opportunity to better reap the benefits by further developing such programs, according to new research from The Conference Board.
“Creating the right structure to integrate the company’s sustainability strategy into its operations, products, and services—all while coordinating efforts across functions—poses a significant challenge for chief sustainability officers (CSOs). A successful sustainability transformation requires a well-defined plan of action. It should not only set goals but also outline the strategy and the means to achieve such goals,” says Nathalie Risse, senior researcher at The Conference Board ESG Center and author of the report.
Key takeaways:
- Less than one-third (31%) of sustainability executives report that their organizations have fully implemented corporate sustainability programs. And, 48% are in the mid-stage of maturity, while 21% are in the early stage of their sustainability journey.
- According to 60% of sustainability executives at large U.S. companies, organizing and implementing their sustainability strategy is their No. 1 challenge. Other challenges include embedding sustainability into the corporate culture and communicating their sustainability story to multiple constituencies.
- 87% of sustainability executives expect CSOs’ responsibilities to increase in the next 3-5 years. Only 6% expect CSOs’ responsibilities to stay the same, and 2% expect them to decrease.
- 68% of companies have had a CSO or equivalent for less than five years.
- 64% of respondents foresee an increase in the number of full-time employees working on sustainability across their organization in the next 3-5 years.
“Organizations should assess both the existing and future demands on CSOs and incorporate these assessments into strategic planning. They should also secure support from internal ‘allies’ from other departments or functions to reduce CSOs’ overall workload. By doing so, companies can keep the CSO focused on the most critical elements of their sustainability transformation, such as high-priority strategy execution and value creation,” says Matteo Tonello, managing director of The Conference Board ESG Center.
“As the demands on sustainability teams continue to grow, it's important for sustainability departments to prioritize upskilling as a part of their employee development programs. Equipping employees with new or advanced skills, such as sustainable supply chain management and technologies for optimizing sustainability reporting, will enhance the organization’s sustainability capabilities and performance,” says Lindsay Beltzer, senior program producer at The Conference Board ESG Center.
