Empower Sustainability Leadership with Chrissa Pagitsas’ Remarkable Guide for Chief Sustainability Officers

How CSOs Build Successful Sustainability and ESG Strategies. In “Chief Sustainability Officers at Work,” Chrissa Pagitsas delivers a captivating exploration of the crucial role Chief Sustainability Officers play in driving corporate sustainability. This transformative book offers an unparalleled glimpse into the strategies and insights employed by industry leaders to navigate the complex landscape of sustainability.

Discover the game-changing strategies that will elevate your sustainability leadership to new heights. Dive into this comprehensive guide and unlock the secrets to becoming a trailblazing Chief Sustainability Officer.

Genres

Business, Sustainability, Leadership, Management, Corporate Social Responsibility, Environmental Science, Climate Change, Green Business, Sustainable Development, Organizational Behavior

“Chief Sustainability Officers at Work” by Chrissa Pagitsas is an in-depth exploration of the critical role Chief Sustainability Officers (CSOs) play in driving corporate sustainability initiatives. Through a series of interviews with experienced CSOs from diverse industries, Pagitsas uncovers the challenges, strategies, and best practices employed by these sustainability leaders.

The book delves into the multifaceted responsibilities of CSOs, including developing and implementing sustainability strategies, engaging stakeholders, measuring and reporting on sustainability performance, and navigating the complex landscape of environmental, social, and governance (ESG) issues. Pagitsas highlights the importance of integrating sustainability into core business operations and decision-making processes, emphasizing the need for collaboration and cross-functional alignment.

Throughout the book, real-world case studies and examples illustrate how CSOs have successfully driven sustainability initiatives within their organizations, overcoming barriers and creating tangible business value. Pagitsas also explores the evolving role of CSOs, discussing the skills, competencies, and mindsets required to excel in this dynamic and challenging field.

“Chief Sustainability Officers at Work” provides valuable insights and practical guidance for aspiring and current CSOs, as well as business leaders seeking to embed sustainability into their organizations. Pagitsas’ extensive research and interviews offer a comprehensive perspective on the state of corporate sustainability and the critical role CSOs play in shaping a more sustainable future.

Review

“Chief Sustainability Officers at Work” is an essential read for anyone interested in the intersection of business and sustainability. Chrissa Pagitsas has done an outstanding job of capturing the experiences, challenges, and triumphs of Chief Sustainability Officers (CSOs) across various industries.

The book’s greatest strength lies in its practical and actionable insights, drawn from the real-world experiences of seasoned CSOs. Pagitsas skillfully weaves together their stories, highlighting common themes and best practices that readers can apply to their own sustainability journeys. The case studies and examples provided are both inspiring and informative, showcasing the tangible impact CSOs can have on their organizations and the broader sustainability landscape.

Pagitsas’ writing style is engaging and accessible, making complex sustainability concepts easy to understand for readers with varying levels of expertise. The book’s structure is well-organized, allowing readers to easily navigate through the different topics and themes covered.

One minor drawback is that the book primarily focuses on large, multinational corporations, which may limit its applicability to smaller organizations or those in specific sectors. However, the underlying principles and strategies discussed remain relevant and adaptable to a wide range of contexts.

Overall, “Chief Sustainability Officers at Work” is a must-read for anyone seeking to deepen their understanding of corporate sustainability and the critical role CSOs play in driving change. Pagitsas’ comprehensive and insightful exploration of this field makes the book an invaluable resource for sustainability professionals, business leaders, and students alike.

Recommendation

The people who lead sustainability and ESG within their organizations know why their work is crucial – for their employers, society, and the planet. However, many questions remain about how best to accomplish corporate sustainability and environmental, social, and governance goals. ESG and green finance expert Chrissa Pagitsas offers meaty interviews with sustainability heads at Coca-Cola, Amazon, BlackRock, and other Fortune 500 companies. Their insights into strategy, leadership, and change management will be useful to any CSO or ESG leader and those who partner with and support them.

Take-Aways

• CSOs guide their organization’s sustainability and environmental, social, and governance (ESG) agendas.
• CSOs rely more on soft skills, consider longer time scales and measure their success differently than other executives.
• CSOs must know and address internal and external stakeholder priorities.
• CSOs partner with boards and peers to integrate sustainability into the core business.
• CSOs partner with external organizations to extend their impact and pursue ambitious goals.
• CSOs must possess – and instill in others – patience for initiatives that may take years to show notable results.
• CSOs can create change in the short term by building ESG and sustainability principles into products.
• CSOs manage risks and achieve results by inciting change in processes and systems.

Summary

CSOs guide their organization’s sustainability and environmental, social, and governance (ESG) agendas.

The people who lead an organization’s sustainability and ESG strategy have various titles, including head of ESG, head of sustainability, and, most commonly, chief sustainability officer (CSO). Their responsibilities and backgrounds also vary widely. But all guide their organizations to meet the challenges of climate change, social justice, evolving regulatory frameworks, and shifting investor expectations. And all CSOs play a crucial role in their organization’s long-term growth.

“[CSOs] are frequently entrusted with responsibilities beyond sustainability, such as enterprise strategy, stakeholder management, procurement, human resources, philanthropy, and more.”

The CSO role emerged over the past two decades as companies – and civil society – began to recognize a need to address environmental and social justice issues. Initially, businesses focused primarily on “green” initiatives, such as energy efficiencies. Over time, the more encompassing ESG approach became the go-to way for assessing a company’s environmental and social impacts and governance. Today, those who lead their organizations in sustainability and ESG understand the reasons behind their work, but questions about how to pursue often-complex ESG remain.

CSOs rely more on soft skills, consider longer time scales and measure their success differently than other executives.

Typically, business leaders measure their success in highly specific, quantifiable terms, such as profitability per square foot. CSOs, in contrast, frame success in more qualitative, broader ways – such as, for Pia Heidenmark Cook, CSO at IKEA, “to inspire and enable more than one billion people to live better lives within the limits of the planet.” Executives usually think in terms of quarterly and annual time horizons, but sustainability leaders consider objectives that could take as long as 20 years to achieve. However, Heidenmark Cook believes the role of CSO and that of traditional business unit heads will eventually merge as people rethink the assumption that sustainability and profitability are at odds.

“With all executives and everyone I work with, I approach with humility, listen before speaking, am prepared, and translate the work into something that’s meaningful to either their agenda or their goals.” (PVH Corp. CSO Marissa McGowan)

The skills that a CSO needs often overlap those of other executives – such as the ability to promote collaboration within a group. However, according to Steve Varley, global vice chair of sustainability at Ernst and Young (EY), CSOs operate in a broader context; therefore, they must listen more carefully to the voices of external stakeholders – including customers, regulators, and investors – and give greater consideration to the business operation’s externalities. CSOs must be able to consider a variety of perspectives, prioritize courses of action, and get both internal and external stakeholders on board with sustainability and ESG initiatives, says Duke Energy’s Katherine Neebe.

For Frank O’Brien-Bernini, SVP and CSO at Owens Corning, change leadership lies at the heart of the CSO role. According to Heidenmark Cook, the cross-functional nature of sustainability work means CSOs must rely on influence and inspiration to engage people. Varley considers authenticity to be crucial: When leaders talk, for example, about racial inequity, he says, their credibility and effectiveness will depend on people’s perceptions of their authenticity.

CSOs must know and address internal and external stakeholder priorities.

The work of CSOs serves a vast and diverse set of stakeholders, including, depending on the organization, consumers, clients, suppliers, investors, financial institutions, policymakers, regulators, non-governmental organizations, communities, civil society, nature, and the planet itself. These stakeholders often hold conflicting opinions, and no organization can please them all, all the time. Hence, CSOs must lead a process of prioritizing sustainability and ESG objectives.

“Just start to get clear on what is important to your business, what’s important to society, and where you can make a meaningful difference. Don’t try to do 75 things. Try to do maybe 10 or three.” (Beatriz Perez, Coca-Cola)

The process should focus on the company’s desired outcomes and the role the organization could play in attaining those ends. At Procter & Gamble (P&G), Virginie Helias conducts a sustainability prioritization exercise incorporating interviews with internal and external stakeholders. The questions probe for these stakeholders’ opinions about the objectives that would offer a strategic advantage for P&G and those that represent the company’s responsibilities. After discussion, Helias and her team determine priorities and decide how to implement them.

CSOs partner with boards and peers to integrate sustainability into the core business.

CSOs see their role as building commitment, collaboration and shared understanding across their organizations, including among executive management and the board, while empowering teams to support sustainability in their daily work. CSOs work to ensure companies adopt sustainability and ESG goals into their overarching strategy and decision-making. The CEO’s buy-in is crucial, as it can empower the CSO to bring ideas forward, assist in building management engagement, and increase the organization’s adaptability. A CEO who truly embraces sustainability and ESG can advocate for the program and encourage the CSO to aim high.

“A partnership mindset means acknowledging that a siloed team cannot drive the change we want to make in the company, and a company alone cannot drive the change we want to see in the industry.” (Marissa McGowan, PVH Corp.)

The board of directors can bring their various expertise and lenses to decisions about sustainability and ESG, including how to set priorities. The board can also help establish oversight infrastructure to ensure integration of ESG and sustainability into the organization’s strategies and plans. For Helias, partnerships with the chief research, development and innovation officer and the chief financial officer are also critical. Collaboration ensures new products embody sustainability principles and the organization meets investors’ criteria for ESG and sustainability. Partnering with the investor relations team can yield insights into institutional investors’ questions.

CSOs partner with external organizations to extend their impact and pursue ambitious goals.

Through partnerships with external organizations, CSOs combine their companies’ intelligence, ideas, and capabilities with those of peer enterprises, nonprofit organizations, governmental bodies, and other public and private parties to pursue world-changing solutions to environmental and social challenges. Some partnerships comprise hundreds of organizations working toward a shared agenda, such as reducing carbon emissions. Others aim at narrower, industry-specific targets, such as MGM Resorts’ participation in international and regional gaming councils to promote responsible gaming.

“No one of us can solve the climate crisis alone. It will require partnership across multiple domains, and each of us is bringing solutions to the table and amplifying those of others.” (Kara Hurst, Amazon)

In keeping with its bold slate of climate goals, Amazon takes part in a long list of partnerships, coalitions, and alliances. These include the Climate Pledge – a commitment by more than 200 companies to reach net-zero carbon emissions by 2040 – and the LEAF Coalition – a public-private partnership that has mobilized over $1 billion to help protect the world’s rainforests. P&G has joined other industry members and NGOs to tackle waste management, sustainable forestry, and water stewardship. In the area of human rights, PVH Corp. partners with the International Labor Organization’s Better Work program to promote fair treatment and social support for workers.

CSOs must possess – and instill in others – patience for initiatives that may take years to show notable results.

Sustainability and ESG objectives can stretch decades into the future. Progress can be slow, and results are difficult to measure in the short term. To persevere, CSOs must possess patience, persistence, courage, and a conviction that they are pursuing the right course – one that will benefit the organization and stakeholders in the long term. Elsa Palanza of Barclays likens the transition of the global banking portfolio to steering an aircraft carrier: Tiny changes made today can yield outsized returns in the long run, but, in the present moment, it can feel like nothing is changing at all.

Sometimes, it’s a matter of waiting until the time is ripe for a shift. Heidenmark Cook proposed using electric vehicles for home deliveries in 2012, but the idea wasn’t workable at the time. Fast-forward a decade, and IKEA has committed to zero-emissions solutions, including EVs, for all home deliveries. Often, CSOs must wait to commercialize their proposals until costs for new technologies decline; sometimes, it’s a matter of the time needed to ready people for change.

“The tragedy is that regulators, politicians, and the leaders of companies can’t think over those decades or time frames to make this the most important thing they’re focusing on today, yet it should be.” (Steve Waygood, Aviva Investors)

For climate-change-related goals, time horizons can extend to 2040 or 2050 – for example, Barclays aims to reach net zero by 2050. The business leaders who back these plans might never see the fruits of their efforts. Action is needed today, but the more short-term horizons of many political and business leaders prevent them from appreciating the urgency.

CSOs can create change in the short term by building ESG and sustainability principles into products.

Organizations can see immediate, measurable benefits from aligning products with sustainability and ESG priorities. P&G reformulated its Cascade dishwasher detergent so consumers don’t need to pre-wash dishes, and Hewlett Packard Enterprise (HPE) designs products for easy upgrading and repair. HPE also operates two technology renewal centers, where the company remanufactured almost 2.7 million products in 2020 alone. IKEA builds sustainability into its entire product line, working across all suppliers to obtain materials such as wood, metal, and cotton produced in ways that support sustainability goals. Heidenmark Cook says IKEA seeks to “help make a sustainable life both affordable and attractive.”

“Finding how you communicate the sustainability story in a way that resonates with people – but without overdoing it and overclaiming it – is a work in progress for us and many other companies.” (Pia Heidenmark Cook, IKEA)

In finance, Fannie Mae has been offering green mortgages and green bonds backed by those mortgages for over a decade. By the end of 2021, Fannie Mae had issued more than $100 billion in green bonds. The mortgages provide profits and low credit risk to investors and improve the lives and finances of low- and moderate-income homeowners. BlackRock accommodates clients’ desires to support sustainability in their investment strategies by offering products that align with ESG themes or offer potential environmental or social benefits along with their financial returns, including two exchange-traded funds focusing on sustainability.

CSOs manage risks and achieve results by driving change in processes and systems.

Sustainability becomes integrated into a business through changes to processes and systems. For example, when Chrissa Pagitsas piloted green mortgage products and green bonds at Fannie Mae, she modified the loan underwriting process to include an energy audit report. At PVH, changes to the auditing process enabled the company to gain clearer insights into the apparel production process at its thousands of garment factories, helping PVH improve its environmental practices and better support its workers. And at Amazon, Hurst oversaw changes to shipping processes that allowed the company to eliminate one million tons of packaging material.

Scott Tew of Trane Technologies defines sustainability integration as the focus on modifying existing, successful processes – similar to continuous improvement – to enhance their value in terms of customer satisfaction or a facility’s operations. For example, Trane’s salespeople explain to customers how the company’s HVAC systems will create physical comfort and help the customer reach carbon emissions targets. Trane established a Center for Energy Efficiency and Sustainability to help the company integrate sustainability into all its functions by modifying processes, generating insights, and providing training.

“The secret to success for CSOs at large, global companies is to become good at finding ways to change major things, often one small step at a time.” (Scott Tew, Trane Technologies)

Leading change is central to the CSO’s role. Heidenmark Cook sees change management as the essence of her job. O’Brien Bernini recommends using models from Simon Sinek and John Kotter to engage people and drive change, step-by-step. Iron Mountain’s Kevin Hagen sees employees as the primary change vector: People want to make a difference in their jobs, and when they’re offered the opportunity, they will embrace change and drive it themselves.

About the Author

Chrissa Pagitsas is a strategic adviser to senior executives on the intersection of environmental, social, governance and global business. She is founder and principal at Pagitsas Advisory Services and a senior adviser for McKinsey & Co. Prior to her current role, Pagitsas served as chief sustainability officer at Fannie Mae, where she launched the first green commercial mortgage-backed security in the United States.