
| Solutions for Our Times |
| For further information and to receive complete copies of any of the white papers you see here, Contact Al Uretsky, Managing Partner Estrella Partners Group, LLC Tel.: (623) 594-9283 auretsky@estrellapartners.com |
| Chief Sustainability Officer: A New Face in the C-Suite By Al Uretsky and Brigitte Bavousett Introduction Businesses today face increasing pressure to develop policies that are good for the planet, good for consumers, and good for business. The new face sitting at the mahogany table in the C-Suite is the Chief Sustainability Officer (CSO), also known as Chief Green Officer (CGO). The CSO is the one eyeing that mahogany table and wondering if the wood was sustainably harvested, or if it endured a long carbon-emitting overseas-transportation process to its new home in the C-Suite. These are but a few of the issues a CSO must address in an effort to meet a business' sustainability goals, be they voluntary courses of action, or an effort to proactively comply with pending legislations at the city, state, federal and/or international levels. The first official school of sustainability to offer a comprehensive, interdisciplinary education for a Masters or PhD in sustainability opened its doors in 2007 at Arizona State University. Previously, many businesses began to appoint CSOs before any degreed graduates had completed their curriculum. The momentum of sustainability, and lack of educational institutions offering a degree in sustainability, prompted a majority of companies to reorganize from within and then train a newly-titled long-term manager or higher level executive to run a sustainability program. Often this individual possessed an academic background in his or her field as well as leadership attributes developed during years of real-world experience. The intrinsic challenges of trial-by-fire as a CSO are further complicated by the onslaught of new sustainability policies, methodologies, mandates, regulations, certifications, and the nebulous nature of sustainability itself. Many of today's CSOs may still be getting their feet wet with sustainability initiatives, and haven't had the time to study and facilitate a systems-thinking approach. Due to the lack of sustainability degrees, the majority of newly appointed CSOs quickly took advantage of the plethora of internet courses, hands-on workshops, and conventions to learn as much as they could about the different aspects of sustainability (e.g., environmental, economic and societal). These offerings taught them the major challenge for CSOs is to find and ensure the financial gains of sustainable practices, be they direct and indirect cost savings, avoiding costs, competitive advantages for the expanding green market, as well as all factors that contribute to enduring sustainability practices within their organizations. Defining the Role of a CSO A Chief Sustainability Officer (CSO), sometimes known by other titles such as a Chief Green Officer (CGO), or Chief Environmental Commitment Officer (CECO), is the corporate executive in charge of ‘environmental’ programs. Sustainability also encompasses economic and societal needs, although environmental work is the most common perception of a CSO. In the past, these responsibilities were usually at a VP level and resided with the Facility Manager, who provided cost effective resource and environmental control as part of the basic services necessary for the company to function. This has changed over the years as organizations are getting better educated and recognize that sustainability is more than just environmental and has many other implications directly impacted by and impacting a firm’s operation. Several companies have created such positions over the past decade to formalize their commitment to the environment. More than 150 companies by 2005, and that number has doubled to date, implying there is a larger percentage of firms that have not yet addressed this cultural change. Some companies that have adopted this role have done so only to show they are socially responsible on the surface, without a full understanding of the details and ability to implement a sustainability program. Fads come and go, albeit this is no fad. Sustainability is here to stay and should thus become a part of an executive’s leadership core values. The sooner companies acknowledge this fact, and start to leverage this function, they will see benefits realization such as cost savings, increased brand image, increased social responsibility, increased corporate stability, potentially decreased legal costs and decreased healthcare expenses. The CSO position is primarily responsible for giving back to their communities, implementing and managing the corporation's commitment to reducing its carbon footprint and protecting the environment. They also embed sustainable practices with their employees. Defining this role as a corporate officer reinforces the efforts performed to reduce the corporation's costs of ownership and operations, by giving increased validity, responsibility, and accountability to this role. As such, the CSO should be positioned as the highest-ranking corporate administrator of the organization's eco-friendly programs, initiatives, and education, and share the responsibility with the CEO and COO for the Direction of Research and Development of new technologies and strategies for the organization. The CSO reports to the CEO or the Board of Directors. The SCO and the COO could be peers, or have a dotted line from one to another, but it is recommended that the CSO is a senior level member of leadership with accountability to the CEO. The CSO needs to work closely with the COO if one exists in the organization. |