Historically, there has been a shift towards CSO hiring, which has gained more momentum from 2020 onwards. According to BoardEx, out of the S&P 500 companies in 2023, 27% had appointed a CSO. According to the International Labour Organization (ILO), the green economy will create 100 million new jobs globally by 2030 and 30 million in the Indian subcontinent by 2050.
This massive surge in CSO hiring is driven by India’s ambitious climate goals, i.e. 35% reduction in emissions intensity by 2030, achieving 40% power capacity through non-fossils, and increasing investments in renewable energy. A survey by IBM shows that 82% of business leaders in India are actively pursuing expert talent in green and sustainability technologies. Research by Adecco Group indicates a growing demand for Climate Sustainability Officers and Cleantech Managers. The research further reveals an impressive wage increase of 84.5% for CSOs and 73.6% for cleantech managers.
By integrating sustainability principles and practises into core business strategy, CSOs are driving innovation, identifying and mitigating risks posed by climate change, and fast-evolving regulatory and compliance space while safeguarding brand reputation.
Who needs a CSO
While sustainability should be a priority for every organisation, certain types of industries and companies can certainly benefit from having a CSO; this includes:
- Companies at the forefront of green industry: Including power producers through natural resources like solar, hydro, biomass, wind; EV manufacturers, battery manufacturing and energy storage solution providers, charging infrastructure providers, manufacturers of green hydrogen/ ammonia and electrolysers. At leadership & CXO levels, organisations are actively seeking professionals in renewable energy.
- Companies in resource-intensive industries: This would typically include sectors with significant environmental footprint, like agriculture, energy, manufacturing, mining etc. as there are growing pressures for the organisations to reduce carbon footprint. A CSO would be able to enhance operational efficiencies while reducing negative externalities.
- Companies undergoing transformation: Strong leadership is needed to help companies shift from traditional models to more sustainable ones. A CSO can align the growth and objectives of a company with larger societal expectations.
- Companies facing regulatory pressure: Industries like pharma or automotive face the tightening grip of ESG and sustainability regulations. A CSO can stay ahead of these frameworks by preempting and mitigating any penalties or reputational onslaught.
- Industries with growing consumer demand for sustainability: A CSO will be able to drive brand loyalty and grow the market share of the companies in sectors where consumer preference is leaning towards brands with strong sustainability credentials. This includes sectors like retail, consumer goods and technology.
Towards sustainable, strategic and long-term growth!
A strong and empowered CSO might be just what the organisations of today need to drive strategic and long-term growth:
- Driving Innovation & creating market uniqueness: contributing towards product innovation that is eco-friendly or redesigning supply chain etc to create a competitive edge for the companies.
- Invoking investor confidence: A Harvard Business Study pointed out the growing involvement of CSOs in discussions with investors to build trust that the organisation is fit to mitigate long-term risks. This helps in favourably influencing corporate valuations and inviting investments, especially from the pro-sustainability corridors of the investment lobbies.
- Mitigating risks: Be it addressing the growing climate change concerns or the social unrest, a CSO ensures that the company stay resilient throughout and steers clear of any costly or damaging disruptions.
- In transforming the culture of the organisations: In today’s times, CSOs are the corporate “change agents”. By integrating sustainability into the fabric of an organisation, CSOs ensure employees across different levels are informed about and contributing to the sustainability measures while attracting the right talent, especially the young and bright minds who feel passionate about integrating sustainability into their professional choices.
Becoming a successful CSO: Required Skills & Competencies
With the growing need for a CSO, the required skill set goes horizontally wide and vertically deep. The core expertise needed to be a CSO in the present times is the integration of a stronghold of sustainability principles with business acumen.
Some of the highly sought-after professionals are experts in regulatory & compliance in solar and wind energy space. Organisations prefers candidates with diverse background such as regulation & compliance, EPC, design & engineering, O&M and BD. Leadership roles in the sector necessitates a deeper understanding of the renewable sector, excellence in project executions, and awareness of tendering and bidding processes, among others.
People aspiring to grow in their CSO career should have strong leadership skills and a strategic vision to foresee a correlation between sustainability and long-term growth. They should also possess natural interpersonal skills to create win-win agreements across multiple stakeholders. Demonstrated ability to work with and lead cross-functional teams, expertise in change management, and data-driven business decision-making would be strong markers of a successful CSO in the making.
For today’s aspirational and growth-oriented companies, having a CSO is not merely a shield against regulatory threats but a necessity to drive innovation and growth.
