Managing Director & Senior Partner
Amsterdam
By Sylvain Santamarta, Alice Bolton, Evelien Dupont, Henrike Seiffert, and David Webb
As sustainability becomes a core part of a company’s strategy, more companies are appointing chief sustainability officers (CSOs) to help achieve their goals and turn sustainability into a source of value creation. These leaders are taking on a massively complex challenge—blending environmental stewardship, corporate responsibility, and profitability—and they must have a plan for success.
A new CSO’s first 100 days are a critical window of opportunity. Incoming leaders should start with a well-structured, 100-day plan to manage the role’s complexities and make an early impact. This approach can also be valuable for seasoned CSOs reassessing their strategies and charting a clear path forward.
Among companies in the S&P 500 and FTSE 100, 52% now have a senior sustainability leader within the top two levels of the organization, an increase of 10 percentage points in the past year. (See Exhibit 1.) Our previous research also found that most sustainability leaders have been hired internally, and the majority do not have formal sustainability expertise. (See Exhibit 2.)
In part, the rise of the CSO role stems from growing numbers of organizations setting ambitious and high-profile sustainability targets—and frequently struggling to meet them. According to the Science Based Targets Initiative, more than 4,200 companies had an approved greenhouse gas emissions reduction target by the end of 2023, a 102% increase since 2022.
Our conversations with CSOs and sustainability leaders across industries highlight four challenges they face in helping hit such targets:
Our research highlights five must-dos for new CSOs in their first 100 days—or for sustainability leaders who need to reboot their agenda, such as when a new CEO is hired.
Understand the CEO’s sustainability ambition and your true mandate. As one sustainability leader at a consumer goods company said, “Ask your CEO: Why am I here?” Before stepping into the role, a new CSO should have an open and forthright conversation with the CEO to understand the parameters of the role. Key questions include:
A CSO can and should shape this agenda, but the ultimate responsibility for setting the company’s level of ambition lies with the CEO.
Do enough due diligence to understand the baseline. Starting on day one, a CSO should thoroughly assess the current state of sustainability in the organization and understand the value drivers of the business. As the CSO of a global professional services company told us, “Your first objective should be to ‘get smart.’” This due diligence falls into three main areas:
Connect internally and externally. New CSOs should engage with stakeholders to understand their views, concerns, and ideas. They should identify potential allies, as well as influential critics whose concerns will have to be addressed. “It’s your honeymoon period,” said the CSO of an industrial goods company. “You need to build relationships fast.” Important groups include the board of directors; leaders of key business units; and major investors, suppliers, and customers.
Set a manageable number of priorities. Based on their due diligence and listening tour, CSOs should then settle on three to five flagship priorities, telling a compelling story of what the organization must focus on and why it matters. “You can’t do it all,” said the CSO of a global pharmaceutical company. “Be able to say what differentiates you.”
The priorities should be strategic and should encompass three broad areas of focus:
Spending time to communicate these priorities to the whole organization and listening to feedback will help build support and enthusiasm.
Kickstart the change with some no-regrets moves. Finally, the CSO should identify some quick wins to generate impact, build momentum, and send a signal to the organization and externally. These could include selecting a set of flagship sustainability KPIs to track, establishing a presence externally at industry events and in the media, and launching green office initiatives like designating a Sustainability Day or celebrating sustainability champions internally.
Tailor your plan to meet your unique circumstances.
Last, the 100-day plan should be fully drafted and ready to implement on day one. New CSOs should find a trusted mentor, coach or advisor to act as a sounding board to support them during their early months. And, critically, they should limit changes to the plan—one early revision at most, in the first month, based on feedback from the CEO and other senior leaders.
Managing Director & Senior Partner, Chief Sustainability Officer, Managing Director of North American Systems
Philadelphia
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
© Boston Consulting Group 2024. All rights reserved.
For information or permission to reprint, please contact BCG at permissions@bcg.com. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Follow Boston Consulting Group on Facebook and X (formerly Twitter).