The Chief Sustainability Officer (CSO) has rapidly emerged as a key executive in modern business, evolving far beyond a token overseer of sustainability reports. Historically, CSOs functioned almost like public relations figures – crafting feel-good narratives about corporate social responsibility to polish the company’s image and deflect reputational risks. In those early days, sustainability stayed at the periphery of business strategy, with CEOs and CFOs leading any serious strategic discussions while CSOs focused on optics and compliance. Today, this picture has undergone a dramatic change. The CSO’s role is undergoing a rapid transformation: they once concentrated on “optics and reputation,” but now many CSOs interact directly with investors and help set strategy at the highest levels. This shift reflects the growing recognition that sustainability isn’t just a reporting exercise or moral obligation – it is a strategic business imperative.

Recent data highlight the growing prominence of the CSO as a key member of the C-suite. Driven by complex new regulations and stakeholder pressures, companies have been appointing CSOs in record numbers. By 2022, 95 of the Fortune 500 companies had a CSO, and the number of sustainability officers tripled in 2021 alone. Far from being niche, sustainability leadership is now mainstream across industries – from manufacturing and tech to finance and consumer goods. Moreover, boards and CEOs are increasingly looking to CSOs to navigate emerging Environmental, Social, and Governance (ESG) risks. As the Financial Times observed, the CSO has become a “crucial member of the management team,” reflecting the increasing prominence of sustainability on the corporate agenda. In other words, companies recognise that issues like climate change, resource scarcity, social inequality, and regulatory shifts materially affect business performance and long-term value.

This paper explores how the CSO’s role has expanded well beyond assembling ESG reports. A modern CSO is a strategic leader and integrator who manages risk, drives innovation, engages stakeholders, shapes regulatory strategy, and steers the company toward long-term value creation. The discussion is structured around these dimensions of the CSO’s mandate. It also includes case studies – from Unilever to Microsoft and Nestlé – illustrating how forward-thinking companies leverage their CSOs for competitive advantage. The tone is business-oriented and cross-industry, reflecting the CSO’s relevance from boardrooms to supply chain operations. All insights are backed by recent data, industry examples, and credible frameworks (e.g. GRI, SASB, TCFD) to ground the analysis in current practice. Ultimately, the goal is to demonstrate that an effective CSO is not just a compliance officer, but a catalyst for embedding sustainability into the core business strategy and securing a resilient future for the enterprise.

The Evolving CSO: From ESG Reporting to Strategic Leadership

To appreciate the CSO’s expanded remit, it helps to contrast where the role started with where it is now. A decade or two ago, sustainability in business was often equated with producing an annual CSR or ESG report – a glossy document highlighting philanthropic projects and incremental eco-efficiency tweaks. Many early CSOs had limited authority; their focus was on internal measurement, data gathering, and meeting reporting standards (like GRI or carbon disclosure) to satisfy regulators and activists. As one commentator noted, “to gain true relevance, this relatively new role must evolve beyond internal measurement and governance”. That evolution is precisely what we are witnessing. Rather than being confined to counting carbon footprints and compiling reports, CSOs today are being embedded in high-level decision-making and go-to-market strategy.

Several factors have propelled this change. First, the external environment has raised the stakes. The “complex sets of federal and international rules and regulations” coming into force – from the EU’s new Corporate Sustainability Reporting Directive to the SEC’s climate risk disclosure proposals – mean sustainability performance is scrutinised as rigorously as financial performance. Compliance alone requires C-suite attention. But beyond compliance, companies see that global sustainability challenges (climate change, resource constraints, social inequity) present significant risks and opportunities for their business models. This has elevated sustainability from a reporting exercise to a strategic concern of the board. Top executives want CSOs who not only understand carbon accounting, but can translate ESG issues into business terms: risk mitigation, innovation, market differentiation and growth. Indeed, Harvard Business Review observes that modern CSOs help identify the ESG issues “that have a substantial impact on an organisation’s financial performance and risk profile,” differentiating those that drive innovation and value from those that require risk mitigation. In short, sustainability has moved from the periphery into the core of corporate strategy, and the CSO’s mandate has broadened accordingly.

A recent study by Capgemini and HBR offers a useful framework for understanding this broadened mandate. They identified eight key responsibilities of the CSO – ranging from traditional duties like ensuring regulatory compliance and ESG reporting, to more strategic tasks like innovation (“scouting & experimenting”), capability-building, and embedding sustainability into decision-making. Notably, the research found that many companies still overweight the compliance and reporting aspects, while underemphasising the strategic areas that create value. The goal for a mature sustainability function is to balance these responsibilities.

Source: Capgemini Invent / Harvard Business Review. Figure: The expanding scope of CSO responsibilities. The diagram illustrates a CSO’s eight core tasks and compares a narrow, compliance-focused CSO profile (left) with a more balanced, strategic CSO profile (right). In the left radar chart, the CSO’s role is heavily skewed toward “Ensuring regulatory compliance” and “ESG monitoring and reporting,” with much less attention to areas like innovation, cultural change, and integration into business processes. The right chart shows a more even distribution across all eight tasks – indicating a CSO who, in addition to compliance and reporting, actively manages stakeholder relationships, builds internal sustainability capabilities, drives cultural change, scouts for sustainable innovations, and embeds sustainability into core processes and decision-making. This visual underscores that an effective CSO goes far beyond ticking boxes for audits – they champion sustainability as a strategic pillar across the organisation.

The imperative is clear: to remain relevant and drive impact, the CSO must be involved at a high level in steering business strategy, not just in measuring and disclosure. In practice, this means CSOs working closely with CEOs, CFOs, and strategy chiefs to align sustainability with long-term business plans. For example, a CSO might help reimagine the company’s business model in light of climate change or shifting consumer preferences, ensuring sustainability is baked into new products and services from the outset. As one industry expert put it, “the CSO, CEO and head of strategy must work together to make sure that sustainability becomes a pillar of competitive differentiation,” elevating it into the company’s long-term strategic plan. The following sections delve deeper into five critical areas where leading CSOs are making a broader impact: risk management, innovation, stakeholder engagement, regulatory strategy, and long-term value creation.

Risk Management and Resilience

Every business faces risks related to sustainability – be it physical climate risks (like extreme weather disrupting operations), transitional risks (such as new carbon taxes or shifting customer sentiments), or reputational risks from social or environmental missteps. A key part of the CSO’s expanded role is to identify and manage these sustainability-related risks as rigorously as traditional financial or operational risks. This goes well beyond publishing a risk factor in the annual report. It involves enterprise-wide scenario planning, risk mitigation strategies, and building resilience against future shocks.

In many companies, the CSO now works hand-in-hand with the enterprise risk management team and the CFO’s office to quantify ESG risks and integrate them into corporate risk registers and decision-making. For instance, the Task Force on Climate-related Financial Disclosures (TCFD) framework – increasingly adopted worldwide – requires firms to assess how different climate scenarios could impact their business and to disclose their governance and risk management processes for climate risks. CSOs are often the architects of these analyses, translating climate science and carbon data into business impacts (like threats to supply chain continuity or asset values) and action plans. This ensures that boards understand the potential financial implications of issues such as global warming or water scarcity and are taking proactive steps to address them. In effect, the CSO acts as a chief risk officer for sustainability, bringing expertise in areas that traditional risk managers may not deeply cover.

Take reputational and ethical risks as an example. A company might face public backlash or investor divestment if accused of greenwashing or poor labour practices. A savvy CSO will implement robust policies and monitoring to prevent such issues – for example, ensuring supply chain audits for labour standards or validating environmental claims scientifically before marketing them. As part of risk management, CSOs also scenario-plan for emerging challenges. Could a drought threaten key raw materials? What if carbon pricing makes a core product unviable? By asking these questions, the CSO helps the company anticipate and mitigate future threats rather than reacting after damage is done. One overview of CSO responsibilities notes that the CSO “must identify and manage sustainability risks, including reputational, financial, and operational risks” – a broad remit that touches every facet of enterprise risk.

It’s important to note that managing sustainability risks is not only defensive. By understanding risks, CSOs can turn them into opportunities. For example, recognizing a high climate risk might spur a company to invest in energy efficiency or renewable energy, which in turn reduces costs and builds brand credibility. Likewise, awareness of social risks in a supply chain can lead a company to invest in supplier development and traceability, strengthening quality and reliability. In this way, the CSO’s risk lens is essential for long-term resilience. With investors, regulators, and insurance firms paying closer attention to ESG risks, a company that proactively manages these areas is better positioned to withstand shocks and even secure lower financing costs or insurance premiums. Ultimately, the CSO ensures that sustainability risks are treated with the same seriousness as financial or operational risks – discussed in boardrooms, baked into strategic planning, and acted upon across the organisation.

Driving Innovation and Sustainable Growth

Far from being the “department of no” that limits business options, today’s sustainability leaders are drivers of innovation and new growth. CSOs are increasingly tasked with finding ways that doing good for society and the planet can also create competitive advantage for the firm. This involves reimagining products, services, and business models through a sustainability lens – essentially, harnessing sustainability as a engine for innovation.

One clear example is in product innovation. Companies are asking their CSOs: How can we redesign our offerings to be greener and more socially conscious, in ways that customers will value? In practice, CSOs often collaborate with R&D and product development teams to introduce innovations such as recyclable or biodegradable packaging, energy-efficient product lines, or services that promote circular economy models (e.g. rental, refurbishment, recycling schemes). For instance, Nestlé’s sustainability leaders have been rethinking packaging materials and design to reduce plastic use and improve recyclability while still meeting cost and functionality requirements. These kinds of innovations not only reduce environmental footprint but can strengthen the brand and open up new markets (as eco-conscious consumers increasingly vote with their wallets). A sustainability-driven tweak or breakthrough can differentiate a product in a crowded marketplace – turning compliance into a selling point.

CSOs also play a role in business model innovation and long-term strategic bets. A telling insight from industry analysis is that the CSO, Chief Innovation Officer, and Chief Digital Officer should work together to bring forth cutting-edge technology and progressive initiatives to support the sustainability agenda. Internally, this might mean developing advanced data systems for tracking ESG metrics or using automation/AI to improve sustainability reporting accuracy and insight. Externally, it means scouting new technologies and startups that could disrupt the status quo in favour of sustainability. Many CSOs today scan the horizon for innovations like carbon capture, alternative materials (e.g. plant-based plastics), renewable energy solutions, or AI tools for climate analytics – assessing which could be integrated into the business or even spun into new ventures. Microsoft’s CSO, for example, has championed the use of artificial intelligence to accelerate climate solutions, noting that AI is a “game-changer” for optimising clean energy deployment, supply chain sustainability, and emissions reduction strategies. Microsoft even published an AI Sustainability Playbook under her leadership, underscoring the emphasis on tech innovation to hit its 2030 climate goals.

Another strategic avenue is monetisation of sustainability. Rather than treating sustainability as a cost centre or mere compliance, progressive CSOs look for ways to generate revenue and profit from sustainability efforts. This could involve launching eco-friendly product lines or services that command price premiums, tapping into growing consumer demand. According to IndustryWeek, “sustainability cannot just be a compliance play focused on cost – it is much more than the cost of doing business.” The CSO and marketing chief should work together to “package and productize” sustainability efforts, gauge new revenue streams from sustainable products and services, and build a value playbook for sales so that sustainability is part of sales enablement. In other words, they turn sustainability into a selling point and growth driver. There are plenty of success stories validating this approach. Companies that have taken sustainability seriously are indeed seeing accelerated growth. Unilever, IKEA, Schneider Electric and Tesla are cited as examples of firms growing faster than peers by riding the wave of consumer preference for sustainable options. Unilever in particular reports that its portfolio of “Sustainable Living” brands (which integrate sustainability into their core purpose, such as Dove, Knorr or Hellmann’s) are growing 69% faster than the rest of the business and accounted for 75% of the company’s growth. This striking figure demonstrates how sustainability-oriented innovation can pay off in concrete business terms.

In facilitating innovation, CSOs often cultivate an internal culture of experimentation. They encourage teams to pilot new sustainable solutions on a small scale and learn quickly, rather than fearing failure. Many CSOs set up internal incubators or “green labs”, or they sponsor hackathons and partnerships with startups and universities, to inject fresh ideas into the company. By championing these efforts, the CSO helps the organisation stay ahead of regulatory changes and shifting market expectations – turning potential disruptions into opportunities. The end result is a company that doesn’t just adapt to the future, but helps invent it. As sustainability guru Stephan Liozu noted, companies treating sustainability as more than compliance derive significant revenue from their efforts, and the CSO’s involvement ensures those efforts are aligned with financial impact and growth. In summary, the modern CSO is as much an innovation catalyst as they are an environmental expert – proving that pursuing sustainability can spur creativity and open lucrative avenues for business development.

Stakeholder Engagement and Communication

Sustainability is inherently multi-stakeholder – it’s about balancing the interests of shareholders, customers, employees, communities, regulators, and the planet. Accordingly, one of the CSO’s most crucial roles is engaging with a wide array of stakeholders and building alignment on sustainability goals. This represents a significant broadening from the past, when a CSO might primarily interact with compliance officers or niche NGOs. Now, they might find themselves in investor roadshows one day, community town halls the next, and strategy workshops with business unit heads in between.

A primary stakeholder group that has become central to the CSO’s work is investors and shareholders. With the rise of ESG investing, many institutional investors are asking tough questions about companies’ sustainability strategies, risks, and progress. In response, CSOs are increasingly stepping in front of investors to tell the company’s sustainability story in business terms. This is a sea change from earlier years when sustainability issues were rarely discussed on earnings calls or investor days. Today, it’s not uncommon for the CSO to join the CEO and CFO in presenting how the company is managing climate risks or capitalising on green growth opportunities. Harvard Business Review notes that CSOs who once stayed behind the scenes are now interacting regularly with investors and communicating strategy. This direct engagement helps build investor trust and can even broaden the shareholder base by attracting long-term oriented investors who value sustainability performance. It also signals internally that sustainability is taken seriously at the top. As a result, the CSO often works closely with Investor Relations to integrate ESG metrics into financial reports and to ensure consistent messaging about the company’s purpose and progress.

Another critical stakeholder is the customer. Customers – whether consumers or B2B clients – are increasingly discerning about the environmental and social impact of the products they buy. A Chief Sustainability Officer plays a key role in aligning sustainability initiatives with customer expectations and communicating the value of these efforts. This can involve marketing collaborations (ensuring claims are credible and resonant), educating customers on sustainable choices, and even co-creating solutions with key clients. For example, leading CSOs take a “customer success” perspective, seeing sustainability as an added value for customers. Liozu pointed out that a CSO should sit with customers to improve their sustainability success and demonstrate how the company can help, essentially becoming a trusted advisor on sustainability for clients. Some companies formally measure the impact of their products on customers’ sustainability goals (through certifications, eco-labels, etc.) as part of their value proposition. By engaging customers in this way, CSOs help strengthen loyalty and open new business opportunities (such as offering sustainability consulting services or partnering on circular supply chains). Nestlé provides a good case in point: it recognises that consumer behaviour is a core part of its climate strategy, so its sustainability team works on initiatives from recycling programs to sustainable product lines that involve educating consumers and building trust.

Employees are another vital constituency. Embedding sustainability in the company culture requires broad employee buy-in, from the boardroom to the factory floor. CSOs often lead internal campaigns to inspire and train employees on sustainability practices – whether it’s a code of ethics, a green office initiative, or integrating ESG goals into performance evaluations. Fostering a culture of sustainability means helping every employee see how their role connects to the company’s sustainability objectives. Many CSOs run internal communications and workshops, highlighting sustainability wins and keeping people informed of progress (and challenges) via intranets or town halls. This not only motivates current staff (especially purpose-driven younger employees) but also aids talent attraction and retention. In surveys, employees – particularly Millennials and Gen Z – increasingly want to work for companies that align with their values. The CSO can be a visible champion of those values, reinforcing the company’s credibility and making sustainability a point of pride internally.

Engaging communities and NGOs is another aspect of the stakeholder role. If a company operates in multiple regions, the CSO might interact with local community leaders or global civil society organisations to address concerns and collaborate on solutions. For example, a mining company’s CSO might negotiate community development programs or biodiversity plans with local stakeholders to maintain its social license to operate. Likewise, consumer-facing companies might partner with NGOs on causes like plastic reduction or fair trade standards. Through such engagement, CSOs help build goodwill and often gain valuable insights from external perspectives.

Importantly, the CSO’s stakeholder engagement is not just about communication – it’s about partnership and co-creation. Recognising that no company can solve systemic issues alone, many CSOs spearhead collaborations that cross company and sector lines. Nestlé’s sustainability leadership emphasises “collaboration as a core value,” aligning with governments, competitors, and academia to scale sustainable solutions across entire industries. We see this in initiatives like industry alliances for sustainable palm oil or consortiums to develop recycling infrastructure – often these are driven or supported by CSOs who network extensively outside their company’s walls. Even competitors can become collaborators in sustainability, sharing best practices or setting common standards (for instance, apparel brands collectively aligning on worker safety protocols). The CSO is usually the connector who makes these partnerships happen.

Finally, transparency in communication is fundamental. Stakeholders expect honest, clear reporting of sustainability progress – the good, the bad, and the ugly. The CSO is typically in charge of issuing sustainability reports and updates, but the approach today is more candid and metrics-focused than the selective storytelling of the past. Best-in-class CSOs ensure their companies set public, measurable goals (e.g. science-based emissions targets, diversity goals) and then regularly report on progress (or lack thereof). Nestlé, for example, maintains regular sustainability reporting and clearly defined roadmaps, using them to maintain public accountability while pushing for measurable progress. By being transparent, CSOs build credibility with stakeholders and pre-empt misinformation. In an era of scepticism about greenwashing, forthright communication is a strategic must.

In summary, the CSO serves as the interface between the company and its stakeholders on sustainability matters. Whether it’s an investor Q&A, a customer workshop, or a multi-stakeholder forum, the CSO articulates the company’s vision and listens to stakeholder needs. Through engagement and partnership, CSOs not only bolster the company’s reputation but also gather insights that feed back into strategy – making the company more responsive and resilient. This stakeholder-centric approach is a key reason the CSO role has grown in stature; sustainability success is ultimately a shared journey, and the CSO is the navigator uniting everyone on the path.

Navigating Regulation and Shaping Strategy

Regulatory strategy is a critical aspect of the CSO’s expanded role. As governments worldwide enact stringent sustainability-related regulations, companies rely on their CSOs to ensure compliance and to strategically position the firm in the face of evolving policy landscapes. In many ways, the CSO acts as a compass and guide for the organisation through a thicket of new ESG laws and standards.

On a basic level, the CSO must ensure regulatory compliance with applicable environmental, social, and governance regulations across all jurisdictions where the company operates. This spans a wide gamut: environmental permits and pollution limits, workplace health and safety laws, product stewardship rules (like recycling mandates or chemical restrictions), human rights due diligence laws, climate disclosure requirements, and more. Keeping track of these is no small task. CSOs typically establish internal policies and management systems to meet these obligations – for example, implementing ISO environmental management standards, or setting up data collection processes to feed into ESG reports. A Harvard Business Review piece outlined that a CSO’s duties include “ensuring regulatory compliance” and “ESG monitoring and reporting”, collecting data to follow the reporting standards and benchmarking against peers. In other words, the CSO builds the internal infrastructure so that the company not only obeys the law but can demonstrate it with accurate metrics and audits.

However, regulatory strategy doesn’t stop at passive compliance. A savvy CSO takes a proactive stance on upcoming regulations and policy trends. This involves horizon-scanning for proposed laws (such as carbon pricing mechanisms, supply chain due diligence requirements, or new disclosure mandates) and analysing how they could impact the business model. By anticipating regulatory shifts, the CSO can advise the C-suite on strategic adjustments well in advance – perhaps investing in cleaner technologies before they become compulsory, or diversifying the supply chain to mitigate exposure to potential import carbon taxes. For instance, well ahead of a ban on certain single-use plastics, a CSO might push R&D to find alternative materials and update product designs, turning a compliance necessity into a marketing advantage (being able to label products “plastic-free” early). This forward-looking approach turns regulation from a threat into a catalyst for innovation.

In regions or industries where regulation is still taking shape, CSOs often engage in policy advocacy and dialogue. Rather than waiting to be regulated, companies (through their CSOs or public affairs teams) might work with policymakers to help shape practical, science-based regulations. Many CSOs participate in industry working groups, government advisory panels, or public consultations, lending the company’s expertise to the process. The aim is twofold: to ensure regulations are effective in solving sustainability challenges, but also to ensure they are realistic and provide a level playing field. Nestlé’s experience provides a good example – its Canadian corporate affairs and sustainability lead, Catherine O’Brien, describes balancing proactive policy engagement with the realities of running a complex global business. She shares how Nestlé engages with policymakers on issues like climate and nutrition, while also navigating the highly regulated environment in food industry. The integration of sustainability and corporate affairs under leaders like O’Brien (and similarly at Unilever and other European firms) shows that companies see policy engagement as part of the sustainability function’s remit. By having a foot in both camps – understanding government objectives and the company’s operational realities – a CSO can help shape sensible regulations and prepare the company to meet them.

Another aspect is alignment with global frameworks and standards. The sustainability field has numerous reporting frameworks (GRI, SASB, the new ISSB standards, etc.) and sectoral codes (like the Equator Principles for banks or RSPO for palm oil). A CSO ensures the company aligns with the relevant frameworks that stakeholders expect. For example, if investors prioritize the SASB (Sustainability Accounting Standards Board) metrics for the industry, the CSO will integrate those into reporting. If climate disclosure is key, the CSO will make sure the company’s reports align with TCFD recommendations (covering governance, strategy, risk management, and metrics related to climate). These frameworks often go beyond legal requirements; they represent best practices or voluntary commitments. Adhering to them can bolster the company’s credibility and make it easier to comply with future mandatory standards (which often build on voluntary ones). As Robert Eccles (founding chairman of SASB) points out, historically CSOs had little to do with shareholders, but now that standards like SASB and TCFD tie sustainability to financial performance, CSOs are central in communicating those aspects to investors. The CSO thus translates between the technical world of sustainability standards and the strategic world of enterprise value.

It’s also worth noting that CSOs contribute to regulatory risk management. By analysing how pending rules could affect costs or market access, they inform enterprise risk assessments. For instance, a potential increase in carbon price or stricter emissions targets might be quantified as a financial risk under different scenarios – information the CFO and board need for risk planning. This overlaps with the risk management role discussed earlier, reinforcing why a CSO must be both detail-oriented about rules and strategic about the bigger picture.

Lastly, the consolidation of roles in some companies indicates how intertwined communications, policy and sustainability have become. As of 2024, Unilever merged its sustainability team with its communications and corporate affairs department, explicitly because “communications and sustainability are increasingly being affected by external policy”. The company’s CSO, Rebecca Marmot, now also leads public affairs, signalling that engaging regulators and shaping public policy debates is part of her job description. Other companies like Mars, Reckitt, and Coca-Cola have similarly married their sustainability and corporate affairs functions. This trend highlights that regulatory strategy and external advocacy are becoming core to what a CSO does. The upside is better coherence: the company speaks with one voice on sustainability, whether to governments, media, or investors. The potential challenge is workload and focus, but it underscores an important reality: the CSO must be as effective in the halls of power and public opinion as in the data rooms of reporting.

In summary, navigating the regulatory landscape is a pivotal part of the CSO’s role. It combines ensuring compliance (the foundation of credibility), influencing and anticipating policy (to safeguard and advance the company’s interests), and aligning with global standards (to meet stakeholder expectations). A CSO who excels in this area turns regulatory change into strategic advantage – positioning their company as a leader that doesn’t just react to rules, but often stays one step ahead. By doing so, the CSO helps the business avoid costly compliance surprises, reduces uncertainty, and often gains a seat at the table in policy discussions that shape the industry’s future.

Embedding Sustainability into Core Operations and Culture

For sustainability to truly drive long-term value, it cannot remain an isolated initiative or a siloed department – it must be embedded throughout the organisation’s operations, processes, and culture. One of the hallmarks of the evolved CSO role is leading this deep integration of sustainability into the DNA of the business. This involves working across departments and breaking down silos so that sustainability becomes “how we do business” rather than an afterthought.

In practical terms, embedding sustainability means that functions like procurement, manufacturing, logistics, marketing, and R&D all incorporate sustainability considerations into their decision-making. The CSO often chairs or facilitates cross-functional committees to achieve this alignment. For example, a CSO might work with procurement teams to integrate environmental and social criteria into supplier selection and auditing – ensuring the supply chain supports the company’s sustainability goals (such as reducing Scope 3 carbon emissions or eliminating deforestation). They might collaborate with operations and engineering to improve energy efficiency in factories, reduce waste, or implement circular economy practices (like reusing materials). In product design, they encourage designers to think of sustainability from the start – using life-cycle assessments to create products that use less material, are easier to recycle, or have smaller carbon footprints. The marketing and sales departments might coordinate with the CSO to craft messaging around sustainable products and to train sales teams on the added value these features bring to customers.

A striking example of this holistic integration comes from Nestlé. Nestlé explicitly ties sustainability to its corporate purpose and has embedded it into every part of the business model – from product design to procurement. As Nestlé Canada’s sustainability head noted, they “don’t treat sustainability as a side project – it’s tied directly to [our] purpose and embedded into every department”. This means, for instance, that when Nestlé works on dairy emissions (a big part of its footprint), the sustainability team is working directly with farmers, manufacturers, and logistics partners to cut emissions across the value chain. The CSO figure (or equivalent) coordinates such efforts across department lines, aligning everyone from agricultural sourcing specialists to distribution planners around common climate targets. The benefit of this approach is that sustainability is not just an annual target handed down from above; it becomes a series of concrete practices and innovations owned by each department.

To embed sustainability, CSOs frequently focus on building internal capabilities and knowledge. This can involve developing training programs for employees at all levels on sustainability principles relevant to their work. For instance, buyers might be trained in sustainable sourcing, product developers in eco-design, HR in diversity and inclusion strategies, and finance teams in ESG valuation methods. Some companies introduce sustainability KPIs into managers’ performance objectives, effectively incentivising each division to contribute (e.g. linking a plant manager’s bonus partly to energy or waste reduction goals). By aligning incentives and skills, the CSO nurtures a workforce that is competent and motivated to execute the sustainability agenda. Harvard Business Review’s analysis emphasises this by counting “building organisational capabilities” and “fostering cultural change” among the CSO’s eight core responsibilities. It’s not just about technical fixes; it’s about mindset and culture.

Culture change is indeed a significant part of embedding sustainability. A CSO often acts as a change agent, working to instill sustainability values into the company culture. This might mean establishing core values or principles (e.g. a commitment to “do no harm” or to respect human rights) and weaving them into corporate narratives and everyday practices. Many CSOs partner with HR and internal communications to celebrate sustainability champions within the company, share stories of sustainability success, and even encourage grassroots initiatives from employees. As sustainability becomes part of the company’s identity, employees at all levels feel empowered to suggest improvements – whether that’s a worker on the factory floor spotting a recycling opportunity or a marketing exec devising a campaign around a brand’s social mission. When the culture shifts to embrace sustainability, the CSO’s job moves from pushing initiatives to harnessing company-wide momentum.

There are also governance mechanisms that CSOs establish to embed sustainability in decision-making. For example, creating a Sustainability or ESG Council that includes executives from key functions and business units can institutionalise cross-functional collaboration. Such councils meet regularly to review performance on sustainability goals, share best practices, and resolve any conflicts between sustainability objectives and other business objectives. Some firms have even linked CSO efforts with board oversight by having a board sustainability committee that the CSO reports to, ensuring top-level accountability and integration with corporate governance.

An embedded approach also means sustainability is considered in major investments and projects. Progressive CSOs work closely with finance teams so that capital expenditures or new venture proposals include sustainability impact assessments. A new factory, for instance, would be evaluated not just on financial ROI but also on its environmental footprint and community impact. Similarly, mergers and acquisitions now often entail ESG due diligence – an area where CSOs provide expertise to ensure the company isn’t blindsided by sustainability risks in a target company (like hidden environmental liabilities or poor labour practices).

The payoff of embedding sustainability is significant for long-term value creation. Companies that thoroughly integrate these practices tend to be more agile in responding to external shocks (because sustainability-minded teams have already considered alternatives and resilience). They also tend to enjoy stronger reputation and brand loyalty, as stakeholders see consistency between what the company says and does. Crucially, integrated sustainability correlates with innovation and efficiency gains – the very act of scrutinising processes for sustainability often uncovers waste reduction and process improvements.

From a competitive standpoint, embedding sustainability can differentiate a company in the marketplace. When sustainability is part of the core, it leads to continuous improvements and differentiation that competitors who treat it superficially cannot easily replicate. This is why experts argue that sustainability should be elevated to a pillar of competitive strategy. For example, a retailer that has embedded sustainability might have a supply chain that is not only low-carbon and ethical but also shorter and more transparent, yielding cost and reliability advantages. Or a carmaker deeply committed to sustainability might innovate electric and hybrid models faster, capturing market share as combustion engine regulations tighten. These outcomes stem from a sustained, embedded effort rather than one-off initiatives.

To summarise, embedding sustainability is about making it part of “business as usual.” The CSO’s leadership in this domain is about integration, collaboration, and culture. By embedding principles into everyday processes – from how products are conceived and made, to how employees are rewarded and how decisions are vetted – the CSO ensures sustainability is not an external add-on but an internal drive. This lays the groundwork for the company to truly achieve its sustainability goals and to adapt continually as new challenges and opportunities arise. In essence, the CSO is cultivating a living, breathing sustainable enterprise, one that can create value for all stakeholders well into the future.

Competitive Advantage and Long-Term Value Creation

One of the most compelling reasons companies are elevating the CSO role is the realisation that sustainability drives long-term value creation and can be a source of competitive advantage. No longer seen as a cost centre or a charitable effort, sustainability is now firmly linked to business success. The CSO, as the strategist and coordinator of sustainability, is instrumental in translating sustainability initiatives into tangible business value – whether through improved efficiencies, innovation-led growth, brand enhancement, or risk reduction. This section looks at how CSOs help unlock competitive advantage and ensure that sustainability efforts support enduring shareholder value.

Market differentiation and brand strength are key aspects of competitive advantage gained through sustainability. In many industries, consumers and B2B clients prefer to buy from companies that demonstrate genuine commitment to ESG principles. A strong sustainability profile can differentiate a brand in a crowded market, win customer loyalty, and even allow premium pricing for certain products. The CSO contributes by authenticating and deepening the company’s sustainability narrative – ensuring it’s backed by real action. When sustainability is integrated into the core product offering (as we discussed with Unilever’s Sustainable Living brands or Microsoft’s carbon-neutral cloud services), it becomes a selling point that competitors may struggle to match if they haven’t made similar investments. Moreover, a company known for purpose and responsibility often has a brand halo effect that attracts customers and partners. For example, electric vehicle pioneer Tesla leveraged a mission of sustainability (accelerating the transition to electric transport) to build an incredibly strong brand, which translated into customer enthusiasm and high market valuation – despite incumbents being larger and more resourced. While Tesla doesn’t have a traditional CSO, the principle stands: companies that put sustainability at the heart of their value proposition often punch above their weight in brand perception. CSOs at established firms try to infuse some of that effect by aligning their brand portfolios with sustainability values and communicating progress transparently to earn trust.

Another element is operational efficiency and innovation, which was covered earlier as an outcome of sustainability initiatives. By cutting energy, waste, and materials use, companies save costs – improving margins. By innovating new processes and products, they tap new revenue streams. Over time, these efficiency gains and innovations compound, creating a widening gap between sustainability leaders and laggards. For example, companies that invested early in renewable energy and efficiency may now enjoy lower operating costs and insulation from fossil fuel price volatility – a competitive edge in industries with tight margins. CSOs champion these investments and track their returns, making the case that sustainability initiatives are not just ethically right but financially smart. Many CSOs use ROI and business-case analysis for sustainability projects, demonstrating payback periods and long-term savings to get buy-in from finance teams. The numbers increasingly support them. In fact, according to a 2025 global survey, 88% of companies worldwide now view sustainability as a potential driver of long-term value, and over 80% say they can measure a positive return on investment for their sustainability projects. This reflects a significant shift in mindset – sustainability is seen as integral to value creation, not separate from it. The CSO’s ability to measure and articulate these returns is crucial for sustaining commitment at the executive and board level.

Risk management, as discussed, also ties directly to long-term value. Companies that avoid sustainability pitfalls – be it environmental disasters, supply chain scandals, or regulatory penalties – protect their valuation and avoid value destruction. One cannot quantify the brand value and goodwill preserved by, say, avoiding a major oil spill or a child labour scandal, but those who have suffered such crises (and seen billions wiped off market cap overnight) appreciate the preventive value of robust sustainability oversight. Investors are cognizant of this too; they increasingly incorporate ESG metrics into valuations, believing that companies with strong sustainability performance are likely to face fewer costly controversies and have more stable, resilient returns. By managing ESG risks proactively, the CSO contributes to reducing the firm’s risk premium and potentially lowering the cost of capital. There’s empirical evidence that companies with higher ESG ratings often enjoy lower volatility and sometimes lower borrowing costs, as lenders and insurers favour firms with less exposure to environmental or social liabilities.

One cannot overlook talent attraction and retention as part of competitive advantage. In knowledge-driven industries especially, having the best talent is a huge competitive edge. Today’s workforce, particularly younger generations, heavily weighs a company’s purpose and sustainability when choosing employers. Companies that lead in sustainability (and can genuinely demonstrate their impact) find it easier to recruit mission-driven talent and to keep employees engaged. The CSO plays a role here by shaping those company values and initiatives that employees take pride in. For instance, a company with a credible net-zero commitment or community investment program might find employees more motivated and less likely to leave, improving productivity and reducing turnover costs. Over time, a purpose-driven culture can drive better innovation and customer service, feeding back into competitive performance. Many CEOs have noted that their sustainability agenda has become a point of pride internally, effectively a tool for talent strategy – something championed and communicated by the CSO.

Investors too increasingly reward sustainability leadership, which ties directly into long-term shareholder value. Large asset managers and pension funds, guided by frameworks like the Principles for Responsible Investment (PRI), are channelling capital towards ESG leaders. Companies that integrate sustainability into strategy tend to attract more patient capital and benefit from higher market valuations relative to peers lagging on ESG. A meta-study of academic research found that the vast majority of studies show companies with strong ESG performance have either similar or better financial performance over the long run, with many demonstrating market outperformance. While correlation is not causation, the signals are strong enough that ignoring sustainability is seen as a risk. As such, the CSO’s work in boosting ESG performance can contribute to a valuation premium. It’s telling that in some industries, the market “price” of being a laggard has gone up – e.g. oil and gas firms with unclear transition plans trade at lower earnings multiples compared to those aggressively investing in renewables and diversifying, reflecting investor sentiment on future viability.

Perhaps the most profound long-term value of a strong CSO-driven strategy is future-proofing the business. In a world of rapidly changing expectations and biophysical limits, companies that are ahead on sustainability are better positioned to thrive as these trends intensify. Regulations will only get stricter in response to climate change and social pressures; customer preferences will continue shifting towards sustainability; and technologies enabling sustainable business will advance. Companies guided by a strategic CSO are planning for 5, 10, 20 years down the line, not just the next quarter. They are more likely to pivot successfully when needed – for instance, moving to new business models like servitisation or product-as-a-service if that supports a circular economy. By cultivating adaptability and a forward-looking perspective, CSOs help the company avoid the fate of those that failed to adapt (consider how some incumbents were caught off-guard by the renewable energy boom or plant-based protein trend). In essence, CSOs instill long-term thinking, counterbalancing short-term pressures with a vision of sustained value over time. This is in alignment with the concept of “creating shared value,” where business value and societal value go hand in hand – a philosophy many CSOs embrace.

To illustrate, Unilever’s former CEO Paul Polman (though not a CSO himself) famously stopped issuing quarterly earnings guidance to focus on long-term sustainable growth, and under his tenure Unilever’s CSO and team drove the Sustainable Living Plan that delivered superior growth in sustainable brands. That approach attracted long-term investors and spared the company some of the short-term market churn. Similarly, Microsoft’s aggressive sustainability commitments (like being carbon negative and water positive by 2030) are heavily backed by its CSO-led initiatives, and analysts often cite these commitments as evidence of visionary leadership, potentially contributing to Microsoft’s strong valuation as a future-ready company.

In summary, the CSO helps transform sustainability from a cost of doing business into an engine of long-term value creation. Through differentiation, efficiency, risk management, talent attraction, and strategic foresight, sustainability leadership can yield competitive advantages that are difficult for rivals to replicate quickly. As a recent Morgan Stanley report noted, 88% of companies see sustainability as a long-term value driver – a sentiment that underscores why CSOs are being empowered to drive change. The next section will look at concrete examples of companies that have successfully leveraged their CSOs for broader strategic impact, putting into practice all the dimensions we have discussed.

Case Studies: CSOs as Strategic Enablers

Unilever: Sustainability as Core Strategy and Growth Driver

Unilever is often heralded as a pioneer in elevating sustainability to the core of its business strategy, and its CSO has been central to this journey. Unilever’s former Chief Sustainability Officer, Rebecca Marmot, sits on the company’s senior leadership and reports directly to the CEO, ensuring that sustainability is represented at the highest decision-making level. This reporting line is significant – it signals that sustainability objectives carry weight alongside traditional business objectives. Under Marmot and her predecessors, Unilever implemented the ambitious Unilever Sustainable Living Plan (USLP) in the 2010s, which set out to decouple the company’s growth from its environmental footprint while increasing its positive social impact. The CSO’s role was not just to produce a sustainability report, but to work with brand managers, R&D, supply chain, and finance teams to integrate the USLP targets into everyday business operations. For example, this meant sourcing raw materials like palm oil and tea sustainably, investing in fair labour practices in the supply chain, and reformulating products to be less resource-intensive.

The impact on Unilever’s business has been remarkable. By embedding sustainability into product innovation and brand purpose, Unilever found that its sustainability-focused brands outperformed the others. The company disclosed that its “Sustainable Living” brands (such as Dove, Knorr, Hellmann’s, etc., which have integrated sustainability into their core positioning) were growing 69% faster than the rest of the business and accounted for 75% of overall company growth. This data is often cited as proof that sustainability can drive superior growth. Unilever’s CSO could use these figures to demonstrate to internal and external stakeholders that the sustainability strategy tangibly adds value. Furthermore, Unilever’s stock market performance and resilience have been strong in the years it pursued sustainability leadership, suggesting that investors have confidence in its long-term approach (even though the company has faced its share of challenges and critiques, such as debates about the balance of purpose and financial performance).

Another area where Unilever’s CSO role proved strategic is in external engagement and advocacy. Unilever’s sustainability chiefs have been vocal on the global stage – from climate policy to plastic waste regulations – often pushing industry coalitions and setting higher standards. For instance, Unilever was one of the first consumer goods companies to voluntarily commit to absolute plastic packaging reductions and to invest in new recycling technologies, with the CSO’s team driving these initiatives. The CSO also oversaw Unilever’s decision to review and potentially leave trade associations that lobbied against climate action, aligning the company’s advocacy with its values. This level of alignment and integrity, orchestrated by the CSO, further solidified Unilever’s reputation as a sustainability leader, which in turn boosted brand trust among consumers and attractiveness as a partner among governments and NGOs. It exemplifies the CSO’s role in ensuring consistency between what the company practices internally and what it preaches externally.

Organisationally, Unilever’s recent move to merge its sustainability team with corporate affairs under Marmot (after a restructuring in late 2024) shows the company’s acknowledgement that a holistic approach is needed. By having the CSO also lead external communications and advocacy, Unilever ensures one coherent narrative and strategy, which harks back to earlier times when sustainability was part of PR – except now it’s PR with teeth, grounded in real operational commitments. This change also means Unilever’s CSO is equipped to handle everything from compliance with EU sustainability reporting rules to shaping the company’s response to societal issues, making the role even more influential.

In summary, Unilever’s CSO experience highlights a few key takeaways: embedding sustainability into brand and innovation strategy can drive growth; a CSO with a direct line to the CEO can integrate sustainability at the core of corporate strategy; and leading on sustainability can enhance corporate reputation and stakeholder goodwill in ways that support long-term value. Unilever’s success in leveraging its CSO strategically has inspired many other companies to follow suit, making it a seminal case in the sustainability leadership playbook.

Microsoft: Tech Innovation and Ambitious Targets under CSO Leadership

Microsoft provides a compelling case of a company in a traditionally high-impact sector (technology/cloud computing, which has large energy and resource needs) that has embraced sustainability at a strategic level, guided by a robust sustainability leadership team. Microsoft appointed a Chief Environmental Officer (now Chief Sustainability Officer) as early as 2009 (the role was previously held by Lucas Joppa and since 2022 by Melanie Nakagawa), signalling a long-term commitment. The CSO at Microsoft is charged with achieving some of the most ambitious corporate sustainability goals in the world: the company aims to be carbon negative by 2030, meaning it will remove more carbon than it emits, and to remove all the carbon it has ever emitted (since founding in 1975) by 2050. Additionally, Microsoft aims to be water positive (replenish more water than it uses) and zero waste by 2030. These goals go far beyond standard ESG reporting – they require fundamental changes to Microsoft’s business and significant innovation.

At the midpoint of its 2020–2030 sustainability journey, Microsoft’s CSO-led efforts have delivered substantial progress. By 2025, Microsoft had expanded its renewable energy portfolio to 34 gigawatts across 24 countries, making it one of the largest corporate buyers of clean energy in the world. This massive shift to renewables, overseen by the sustainability team in partnership with finance and operations, ensures that Microsoft’s growing cloud data centres (which are energy-intensive) are powered by green energy, stabilizing energy costs and reducing climate risk. Microsoft also surpassed its land protection targets by 40%, conserving over 15,000 acres of land to offset development and contribute to biodiversity. Furthermore, the CSO has driven initiatives in water replenishment – funding 90 water projects in 40 locations – and in circular electronics, such as improving the repairability of Surface devices and expanding support for Xbox console repairs to minimise electronic waste. These concrete steps, reported by Microsoft’s sustainability updates, showcase how the CSO mobilises different parts of the company (from real estate to product design) to hit public targets.

One hallmark of Microsoft’s approach under CSO leadership is the integration of the company’s core strength – technology – into sustainability solutions. Melanie Nakagawa, Microsoft’s CSO, has emphasized harnessing Microsoft’s expertise in AI and data to accelerate sustainability, not just for Microsoft but for clients and society. Microsoft released an AI for Sustainability playbook, and Nakagawa notes that artificial intelligence is proving to be a “game-changer” in sustainability, with potential to “rapidly accelerate climate solutions at a scale we’ve not yet seen”. Under her guidance, Microsoft is applying AI and cloud analytics to optimize energy consumption in buildings, enable smart grids to use more renewable power, and help customers track and reduce their emissions (for instance, through Microsoft’s cloud-based Sustainability Calculator tool). This synergy of business and sustainability strategy – basically selling what you practice – both advances Microsoft’s mission and opens new market offerings (AI-powered sustainability services, in Microsoft’s case). The CSO acts as a bridge between the tech innovation teams and sustainability needs, ensuring that Microsoft’s products increasingly reflect and support sustainability outcomes. This not only differentiates Microsoft’s cloud and AI services (as sustainability-enhancing tools) but also helps the company achieve its own targets more efficiently, creating a virtuous cycle.

Microsoft’s CSO also plays a key external role. Recognising that policy and industry collaboration are vital, Microsoft (with CSO input) has been vocal in climate policy advocacy – for example, supporting stronger climate legislation and committing to transparency in lobbying. The company is an active member in initiatives like the Climate Leadership Council and acts as a corporate ambassador for carbon removal technologies (having invested $1 billion in a Climate Innovation Fund). The CSO oversees Microsoft’s Climate Innovation Fund investments, which aim to develop the carbon reduction and removal technologies the company will need to meet its negative emissions goal. In doing so, Microsoft essentially invests in its own future and helps shape a market (carbon removal) that will benefit many. This strategic foresight, championed by the CSO, is a clear case of aligning long-term business viability with global sustainability needs.

From a competitive standpoint, Microsoft’s sustainability leadership (guided by the CSO) has likely strengthened its brand – in an industry where talent competition is fierce and clients are increasingly conscious of their IT supply chain’s carbon footprint, Microsoft’s proactive stance has differentiating value. When bidding for cloud contracts, for instance, Microsoft can credibly demonstrate superior sustainability credentials (like using 100% renewable energy, offering tools to manage customer emissions, etc.) which can sway environmentally minded customers or those with their own net-zero commitments.

In essence, Microsoft’s case demonstrates how a CSO can drive a holistic transformation: setting bold goals that galvanize the entire company, leveraging unique corporate capabilities (like AI) to meet those goals, and investing in innovations that serve both the company and society. The CSO is the linchpin of this effort, ensuring that sustainability is woven into corporate strategy, product development, and stakeholder engagement. Microsoft’s notable progress by 2025 – even as it acknowledges challenges ahead and the need to accelerate (Nakagawa admits the 2030 “moonshot” now feels further away given global climate trends) – shows the impact of sustained CSO-driven efforts. It stands as an example in the tech industry of how sustainability can be pursued not at the expense of innovation and growth, but in tandem with it.

Nestlé: Value Chain Transformation and Holistic Integration

Nestlé, the world’s largest food and beverage company, offers a telling example of a legacy industry player making sustainability a strategic priority across a vast and complex value chain. Given the nature of its business – from agriculture (dairy, coffee, cocoa) to manufacturing to packaging – Nestlé faces a wide spectrum of sustainability issues (greenhouse emissions, deforestation, water use, packaging waste, nutrition and obesity concerns, etc.). The company’s approach, steered by its sustainability and ESG leadership (while Nestlé doesn’t always use the CSO title globally, it has senior executives fulfilling that role, such as its Global Head of Sustainability or CSV – Creating Shared Value – officers), has been to embed sustainability goals into the heart of its business model and engage every part of the organisation in delivering them.

One highlight of Nestlé’s strategy is its focus on the entire value chain – particularly the supply chain, which is where most of its environmental and social impact lies (think of dairy farms’ methane emissions or cocoa farmers’ livelihoods). Nestlé’s sustainability leaders work closely with procurement and agricultural specialists to drive programs for regenerative agriculture, deforestation-free sourcing, and farmer support. For instance, to tackle Scope 3 emissions (indirect emissions in the value chain, which for food companies are huge), Nestlé is collaborating directly with farmers to implement sustainable farming practices, such as improving feed and manure management in dairy to cut methane, or training farmers in agroforestry for cocoa and coffee to enhance carbon capture and climate resilience. As Catherine O’Brien of Nestlé Canada emphasised, achieving net-zero targets “means engaging farmers, manufacturers and logistics partners” and even directly working with producers to address big challenges like dairy emissions. This hands-on, partnership approach up and down the supply chain is a hallmark of Nestlé’s CSO-style leadership. By investing in its suppliers’ sustainability (often through technical assistance or financing), Nestlé not only reduces risk (securing future supply of key ingredients under climate change) but can also market its products as responsibly sourced – a competitive advantage as consumers demand ethical products.

Packaging and circular economy is another area Nestlé’s sustainability team has tackled as a strategic issue. Nestlé has made bold commitments to make 100% of its packaging recyclable or reusable and to drastically reduce virgin plastic use. Implementing this required significant R&D and retooling – from developing new packaging materials (like paper-based wrappers for KitKat in some markets) to redesigning packaging for better recyclability. Nestlé’s CSO and R&D teams collaborate on such packaging innovation, balancing sustainability with food safety and cost. The company has also invested in recycling infrastructure and pilots (for example, Nestlé co-founded a recycling venture to process flexible plastics in South Africa, and launched refill or reuse schemes in certain product lines). The complex trade-offs – reducing plastic vs. ensuring packaging integrity and affordability – highlight why sustainability decisions are strategic: they affect product design, brand perception, and regulatory compliance (with many governments enacting plastic regulations). Nestlé’s approach of “rethinking packaging materials and design to reduce plastic use and improve recyclability, while also managing cost and functionality” illustrates how the CSO must work cross-functionally (with packaging engineers, marketing, finance) to achieve sustainable outcomes that also make business sense. For Nestlé, cracking the packaging challenge is also key to maintaining its license to operate, as the public has grown increasingly sensitive to plastic pollution.

Regulatory engagement is something Nestlé handles through combined Corporate Affairs and Sustainability teams. Being a food company, Nestlé is heavily regulated, and new sustainability-related rules (like sugar and salt limits, recycling mandates, carbon reporting) are regularly on the horizon. Nestlé’s sustainability leadership does proactive outreach to governments and industry groups to help shape practical regulations. For example, Nestlé has been involved in dialogues on improving recycling systems and extended producer responsibility schemes – seeking solutions that are industry-wide. O’Brien mentions how Nestlé balances proactive policy engagement with operational reality, which encapsulates the CSO’s tightrope walk: pushing for progressive policies but also voicing the challenges and timelines companies face in implementation. By being at the table, Nestlé can anticipate regulatory changes and position itself as a leader (often exceeding regulatory requirements in advance, such as committing to net-zero by 2050 under the UN Business Ambition pledge, and setting interim science-based targets for 2030).

Internally, Nestlé is a prime example of integrated governance for sustainability. Sustainability goals are overseen by an ESG & Sustainability Council at the top, advising the Executive Board. The company ties certain aspects of executive remuneration to sustainability targets (for instance, climate goals being a factor in CEO pay). This governance support from the top complements the CSO’s efforts by ensuring accountability and resources. Moreover, Nestlé’s concept of Creating Shared Value (CSV), which predates some ESG trends, has long framed its approach – the idea that business can only prosper long-term by creating value for society. The CSO (or equivalent) has the task of translating this philosophy into practice, which can be seen in initiatives like developing healthier products (to create health value for consumers) or community programs for women’s empowerment in villages supplying milk (creating social value that in turn secures a stable supply).

The results of Nestlé’s broad sustainability push are gradually manifesting. For instance, Nestlé reports substantial reductions in greenhouse emissions in its operations and improvements in key impact areas. The company has launched successful products around sustainability trends (like plant-based versions of its meat and dairy products under the Garden Gourmet and Vuna lines, or its premium sustainable coffee “Bonjoro” line in some markets). These not only cater to emerging consumer segments but also future-proof Nestlé’s portfolio against resource constraints (plant-based alternatives, for example, mitigate risks related to livestock emissions and land use). Nestlé’s share price and investor sentiment in recent years indicate that despite being in a traditionally low-growth sector, the market appreciates its proactive stance on ESG as part of its quality as a defensive, long-term investment. Rating agencies often rank Nestlé high among peers on ESG criteria, which can have ancillary benefits like inclusion in ESG funds or lower-cost financing for sustainability-linked loans (which Nestlé has utilized, with interest rates tied to meeting sustainability KPIs).

In short, Nestlé’s case underscores that in an established, asset-heavy industry, a CSO’s influence can steer a massive ship towards a new course. By embedding sustainability into the core (from “farm to fork,” so to speak), Nestlé’s leaders are addressing risks and uncovering efficiencies (like lower energy use in factories) while also adapting to meet consumer and regulatory expectations. It is a comprehensive approach: internal transformation, supply chain partnership, product innovation, and policy engagement all at once. The CSO acts as conductor of this orchestra, making sure all parts of the business play in harmony towards the sustainability goals. This comprehensive integration has started to yield competitive advantages – whether it’s preferred supplier status for environmentally conscious clients (e.g., big retailers want to stock brands with strong sustainability credentials) or simply staying ahead of compliance in multiple jurisdictions.

The Nestlé experience teaches that sustainability, when driven across the whole enterprise, not only mitigates risks of being caught flat-footed (for instance, on plastic bans or emissions costs) but also reveals new pathways to create value. And it is the CSO’s strategic role to navigate and connect these pathways – balancing environmental ambition with operational reality, as O’Brien put it – to secure the company’s success for decades to come.

Conclusion

The rise of the Chief Sustainability Officer to the top echelons of corporate leadership marks a definitive shift in how businesses perceive sustainability. No longer confined to producing annual ESG reports or ensuring basic compliance, the CSO today is a strategic orchestrator of long-term business success. As we have explored, the CSO’s role now encompasses a broad territory – from managing material risks and spearheading innovation, to engaging stakeholders, influencing regulatory landscapes, and hard-wiring sustainability into the company’s operations and culture. This breadth of responsibility reflects a simple truth: sustainability issues are business issues. How a company navigates climate change, resource constraints, social expectations, and governance challenges will fundamentally shape its competitive position and value creation in the years ahead.

For a professional audience across industries, the implications are clear. Empowering a CSO with a mandate “bigger than ESG reporting” is not just a nice-to-have, but increasingly a must-have for forward-looking businesses. A capable CSO brings a holistic view that connects traditionally siloed domains – risk management, R&D, supply chain, finance, public affairs – under the umbrella of sustainable strategy. This integrated approach helps companies avoid blind spots (for example, spotting a supply chain risk before it becomes a scandal), and it uncovers synergies (such as product innovations that appeal to new customer segments while advancing environmental goals). In essence, the CSO serves as the catalyst for aligning profit and purpose, ensuring that sustainability efforts reinforce financial performance and vice versa.

The case studies of Unilever, Microsoft, Nestlé and others illustrate that when given the scope to influence core strategy, CSOs can drive notable outcomes: new growth from sustainable products, cost savings from efficiency, stronger stakeholder loyalty, and future-ready resilience. These are results that matter to any business’s bottom line and longevity. It is also evident that stakeholders – be they investors, customers, or employees – are increasingly expecting this kind of leadership. Investors are asking not just “Do you have an ESG report?” but “How is your CSO driving risk-adjusted returns and innovation?” Customers are shifting their spending towards companies whose values align with their own, and they can tell the difference between superficial marketing and a company where sustainability is ingrained (often the latter is a credit to an effective CSO and team). Employees, too, want to work for companies that stand for something and are making a positive impact, which is why we see so much emphasis on culture and purpose coming from sustainability chiefs.

To succeed in this bigger role, a CSO must speak the language of business as fluently as the language of sustainability. They need to quantify impacts, build the business case, and set clear KPIs, while also inspiring with a vision and engaging hearts and minds. The CSO of today might be found co-developing a new climate-friendly service offering with the product team in the morning, negotiating a sustainability-linked finance deal by afternoon, and then conferring with policymakers or NGOs in the evening. It’s a challenging, cross-cutting role – but when executed well, it becomes a linchpin of corporate strategy. The companies that truly embed sustainability (with the CSO’s guidance) often describe it as becoming part of their competitive DNA, affecting decisions at every level.

British businesses and indeed companies worldwide are at an inflection point in 2025. With pressing global issues and increasing accountability, those that treat sustainability as a core strategic lens will likely outpace those that treat it as a checkbox exercise. The Chief Sustainability Officer, with a remit beyond ESG reporting, is central to this transformation. As research shows, an overwhelming majority of companies now view sustainability as a driver of long-term value. Realising that value requires leadership that can bridge short-term demands with long-term objectives, technical expertise with strategic insight – precisely the role of an empowered CSO.

In conclusion, the role of the CSO has expanded from corporate reporter to corporate strategist. It’s about risk and resilience, innovation and growth, trust and transparency, compliance and competitive edge, all rolled into one. For boards and CEOs, the message is to give sustainability leaders the clout and resources to act on this broader canvas. For CSOs themselves, the mandate is clear: rise to the strategic challenge and demonstrate how sustainability can future-proof and propel the business. The title of this paper rings true – the CSO’s role is indeed bigger than ESG reporting, and in that expanse lies the opportunity to shape enduring, purpose-driven business success in the 21st century.

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