The Rise of CSOs

The Rise of Chief Sustainability Officers (CSOs) in the World and in India

There has been a significant increasing in the number of CSO (Chief Sustainability Officers) roles in recent years, with equal importance as the CEO/ CIO of the organization.

In today’s business landscape, a shift is happening. Companies, regardless of size or sector, are moving towards a more sustainable future, not just in terms of their products or services, but also in how they run their operations. This evolving mindset has led to the rise of a key player in corporate leadership: the Chief Sustainability Officer (CSO).

Once a niche role, the CSO is quickly becoming an essential part of the leadership team, helping organizations navigate the complex terrain of environmental, social, and governance (ESG) issues. Whether it's reducing carbon footprints, implementing green supply chains, or ensuring ethical practices, CSOs are becoming the go-to experts for driving sustainability strategies that align with both business goals and global concerns.

According to a report from Refinitiv and PwC Strategy & Research titled Empowered Chief Sustainability Officers, there has been a significant increase in the number of Chief Sustainability Officers (CSOs) being appointed. Between 2020 and 2021 alone, 394 new CSOs were hired, a number nearly equivalent to the total appointments made over the previous eight years (414 between 2011 and 2019). This trend highlights an increasing emphasis from both investors and CEOs on tackling urgent challenges such as climate change and social equality.

Why the Rise of CSOs?

So, what exactly has triggered the rise of the CSO in the corporate world? There are several reasons behind this surge, some of which reflect larger global trends, while others are more industry-specific.

1. The Urgency of Climate Change and Environmental Responsibility

Climate change is no longer a distant threat—it’s a present-day reality. The environmental challenges we face today are far-reaching, affecting everything from weather patterns to biodiversity to human health. As global pressure mounts for businesses to reduce their environmental impact, organizations are recognizing the need to take a more active role in addressing these issues.

The Paris Agreement, the United Nations’ 17 Sustainable Development Goals (SDGs), and other international frameworks have set clear targets that businesses are expected to meet. A CSO is uniquely positioned to lead a company through the complexities of these goals, helping to build strategies that reduce carbon emissions, conserve resources, and promote circular economy practices.

2. Consumer Expectations and Corporate Responsibility

Consumers today are increasingly driven by ethical considerations when making purchasing decisions. Whether it's concerns over how a company sources its raw materials, the welfare of workers in its supply chain, or its overall environmental impact, consumers are looking for companies that align with their values.

The rise of socially-conscious brands like Patagonia, Tesla, and Unilever is proof that sustainability isn’t just a “nice-to-have” feature—it’s a business strategy that can drive both customer loyalty and bottom-line growth. As a result, companies need a dedicated leader to manage sustainability initiatives and ensure that their actions align with consumer expectations. That’s where the CSO comes in.

3. Regulatory Pressures and Reporting Requirements

Governments around the world are increasingly implementing policies aimed at reducing environmental impacts, such as carbon taxes, emissions reduction targets, and stricter environmental reporting standards. For instance, the European Union’s Green Deal and its Corporate Sustainability Reporting Directive (CSRD) are pushing companies to disclose not just financials, but also their environmental and social impact.

In India, there’s a growing focus on companies reporting on their ESG (Environmental, Social, Governance) metrics. The Securities and Exchange Board of India (SEBI) has mandated that top-listed companies disclose their sustainability practices and impact. This regulatory push has made it imperative for businesses to have someone in charge of ensuring compliance with these standards.

4. Investor Interest in ESG Metrics

In parallel to government mandates, investors are also increasingly considering ESG performance when making investment decisions. Institutional investors, such as pension funds and private equity firms, are moving toward a model that evaluates a company’s long-term sustainability and not just its short-term profitability. This has brought about the need for businesses to have a CSO who can track and communicate the company’s progress on sustainability goals to investors and shareholders.

The Role of the CSO: What Does It Look Like?

A CSO is more than just an environmental advocate or a corporate social responsibility (CSR) manager. While these roles often overlap, a CSO typically has a more strategic function within the C-suite, often sitting alongside the CEO, CFO, and CTO.

1. Driving Sustainability Strategy

At the core of the CSO’s role is the development and execution of a company’s sustainability strategy. This means setting goals for reducing emissions, improving energy efficiency, creating waste management systems, and integrating sustainability into all aspects of the business. It’s a holistic approach that spans everything from product development and supply chain management to customer engagement and community outreach.

2. Reporting and Transparency

As the world demands greater transparency around business operations, the CSO ensures that sustainability reports are accurate, comprehensive, and align with both global standards and investor expectations. Whether it’s producing annual sustainability reports, participating in carbon accounting, or aligning with the Global Reporting Initiative (GRI), the CSO is often the point person for transparency and accountability.

3. Building a Culture of Sustainability

A CSO isn’t just focused on external initiatives. They are also responsible for fostering a culture of sustainability within the organization. This includes training employees, building awareness around sustainable practices, and ensuring that sustainability becomes ingrained in the company’s DNA. Whether it’s through incentivizing eco-friendly behavior or reshaping internal processes, a CSO is essential in creating a sustainability-first mindset within the organization.

4. Engaging Stakeholders

Sustainability is no longer just a buzzword—it’s a movement. And for that movement to be effective, it needs to involve multiple stakeholders. A CSO’s role often includes engaging with a wide range of stakeholders, including government bodies, non-profits, suppliers, and consumers, to ensure alignment and promote sustainability initiatives across the value chain.

CSOs in India: A Growing Trend

The rise of CSOs is not just limited to global corporations; India is also seeing an increasing demand for this leadership role. As a developing economy with a rapidly growing middle class, India faces unique challenges when it comes to sustainability. The country is home to a rapidly expanding industrial base, large-scale agricultural operations, and major urban centers dealing with pollution and waste management issues. At the same time, India is highly vulnerable to the impacts of climate change, such as rising temperatures, shifting rainfall patterns, and natural disasters.

As a result, the need for sustainability leadership in India is stronger than ever. Indian businesses are starting to realize that sustainability isn’t just a matter of social responsibility—it’s crucial to long-term growth and profitability. Here are some examples of CSOs in India:

1. Dr. Arvind Bodhankar: CSO at ArcelorMittal Nippon Steel India. He has spoken about the focus on climate change and energy transition. 

2. Dr. Naresh Tyagi: CSO at Aditya Birla Fashion & Retail Ltd. 

3. R Bhargava: Chief Climate & Sustainability Officer at Shree Cement Ltd. 

4. Sandeep Chandna: CSO at Tech Mahindra. 

5. Chacko Thomas: Group Chief Sustainability Officer at Tata Sons.

1. Government Regulations and India’s Commitment to Sustainability

India has made significant commitments to global sustainability frameworks. The country is a signatory to the Paris Agreement and has set ambitious targets for renewable energy adoption, carbon emission reductions, and sustainable development. The Indian government has also rolled out policies like the National Action Plan on Climate Change (NAPCC) and various state-level environmental regulations, all of which demand increased corporate responsibility.

Indian companies are now being called upon to develop strategies that align with these governmental objectives. In response, organizations are appointing Chief Sustainability Officers to spearhead this transformation. The CSO in India is often tasked with navigating both international sustainability goals and domestic regulations, which requires a nuanced understanding of both global best practices and local realities.

2. Emerging Sectors and the Rise of Green Innovation

India’s renewable energy sector is one of the fastest-growing industries in the world. The country aims to install 500 GW of renewable energy capacity by 2030, and this has led to the rise of green innovations across industries. From electric vehicles (EVs) to solar energy, companies in India are investing heavily in sustainable technology and infrastructure.

CSOs in India are often at the helm of these transformations, driving eco-friendly innovations and helping businesses pivot to greener models. They help guide companies in sectors like manufacturing, agriculture, and technology to reduce their environmental impact while remaining competitive in a rapidly changing market.

3. The Role of CSOs in Indian Family Businesses

India is home to some of the world’s largest family-run businesses. While these businesses have traditionally been slow to adopt formal sustainability structures, that is changing. As younger generations step into leadership roles, there is a growing push for sustainable practices to be ingrained in the company ethos. Family-run businesses are increasingly appointing CSOs to drive these shifts, ensuring that their legacy companies thrive in a sustainable future.

Challenges Faced by CSOs in India

While the role of the CSO is growing in prominence in India, it’s not without its challenges. Cultural resistance to change, especially in legacy companies, can slow the pace of transformation. Additionally, the lack of standardized metrics for measuring sustainability in some sectors makes it difficult for CSOs to effectively track progress.

There’s also the challenge of balancing profitability with sustainability. In an economy that is still grappling with poverty and inequality, it’s essential to find solutions that don’t just drive profitability but also contribute to social sustainability.

TERI (The Energy and Resources Institute) states that the role holds an immense significance for businesses charting resilient growth pathways along with with sustainability principles, regulatory shifts, social vulnerabilities and climate uncertainties.

In fact, in 2014 TERI set up the Chief Sustainability Officers' (CSO) Forum, a community of India's leading chief sustainability officers and thought leaders to work together towards driving sustainable development from the forefront. The CSOs engage with TERI through its Council for Business Sustainability (TERI CBS) aiming to strengthening the business case for sustainability for the corporates.

Conclusion: The Future of CSOs in India and Beyond

The rise of the Chief Sustainability Officer is one of the most significant trends in the modern corporate world. It represents a fundamental shift in how businesses view their role in society—shifting from a profit-first mentality to a more holistic, responsible approach that balances people, planet, and profit.

As this role continues to evolve in India and across the globe, it’s clear that the CSO will be at the forefront of shaping a sustainable future for businesses and society alike. It’s no longer just about greenwashing or ticking boxes—it’s about creating a sustainable legacy that future generations can build upon. And as businesses continue to embrace this new era of responsibility, the CSO will be a key player in leading the charge.

As the world confronts the realities of climate change, resource depletion, and social inequality, the rise of CSOs marks a step toward a more sustainable, equitable, and resilient global economy.

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