The Chief Sustainability Officer: To Hire Or Not To Hire?

For a company looking to improve its environmental impact and sustainability, at first glance, hiring someone to help achieve that goal seems like the most logical decision. But succeeding in corporate sustainability requires more than just hiring a Chief Sustainability Officer (CSO). While leadership is at the heart of moving a company toward this goal, the key is having the right leaders at the right time.

In an ideal world, these leaders come from the business world. They must be strategists who understand the organization at an operational level and can coordinate with external experts to prioritize and assess the changes needed. An internal meeting can show employees that the company rewards those who adhere to ethical principles and combine business success with sustainable business. External consultants can help the internal appointee decide on a sustainability path and provide advice on current or future regulations.

This does not mean that hiring a CSO is not the right decision. A civil society that recognizes sectoral resilience can help define, communicate and implement roadmaps and set targets under current and future legislation. Creating a CSO role (both internal and external) sends a clear message to stakeholders that the organization is serious about sustainable development and provides leadership for results.

It is important to remember that the first CSO does not necessarily have to be a full-time employee. A term CSO can quickly assess a company's sustainability readiness, provide advice, be apolitical in making recommendations, and select a permanent position. If priorities are clear, this position can be filled by a permanent employee from within or outside the organization. Geography also plays a role. Because this is a new feature for many industries, there is a lack of high sustainability skills in some countries. In such situations, the only option is to hire consulting services or look for temporary staff.

For other domestic recruitment or employment organizations, a CSO may not be sufficient. People who work in industries such as energy, chemical processing, or materials manufacturing where the impact on the environment is obvious may have more than one role. Sustainability means addressing operational challenges and working with upstream and downstream suppliers. In organizational forms, evangelizing sustainable development in organizational silos is not enough to solve the big problem.

At the same time, with the rise of ESG-focused investments, significant risk implications associated with green laundering, and an increasingly complex regulatory framework, sustainability competencies have become mandatory for all leaders. In order to select the right suppliers, a procurement manager needs a thorough knowledge of all relevant ESG laws. In a completely different function, such as HR, the CEO must understand and influence the organization's overall sustainability strategy in order to attract and retain talent.

In companies where sustainability is a systemic issue, a single CSO cannot integrate sustainability goals into all areas of the organization and faces resistance. Balancing business goals and sustainability means bringing together different parts of the organization, which often requires trade-offs in individual functions. When sustainability is a "must" for all leaders, these trade-offs collide and it becomes difficult to align activities with the overall goal of sustainable development. In addition, simply appointing a CSO can make other functionaries abdicate responsibility for sustainability, and then inevitably nothing gets done.

To avoid these pitfalls, it is important to appoint a stable group of managers. A team of colleagues who share responsibility for the SDGs and report to the CEO create an environment where sustainability is embedded in operations. He will be part of a "decision making group" that engages in brainstorming and brainstorming. Adding this leadership bonus structure to SDGs and organizations can make a positive difference.

However, implementing sustainability in the C Suite can be a slow process. When this newly appointed stability-oriented leader works with the support of his unstable colleagues, he achieves remarkable results.

Overcoming this requires effective succession planning to create a strong pipeline for talent to move up the organizational ladder. It is a process of matching sustainable individuals at the management level with a development plan in mind. This is a very reliable approach to ensure that the organization has the capacity to meet the challenges of long-term sustainable development.

The type of sustainability leader an organization needs depends on the sector, maturity and leadership skills available. But two things are indisputable: business sustainability comes from leadership, and that leadership must work together, solve challenges, and achieve a common goal. Such leaders are ready for the future. They are multifaceted leaders who move from big picture to execution, proactively plan for future success in succession, and use shared authority in their interactions with people.

Jan Vermeulen is a partner in the Singapore office and head of the global manufacturing practice at staffing firm Odgers Berndtson. Claire Gluckin leads Ögers Berndtsen's manufacturing practice in Europe, the Middle East and Africa.