For the business mission to align to the sustainability vision, Irish organisations need to have a Chief Sustainability Officer (CSO) or sustainability leader who can bring the environmental, social and governance (ESG) agenda from the fringe to the core.
Today, ESG is central to strategy as organisations and their boards focus on how they can create value through sustainability. At the heart of value-led sustainability is the sustainability lead or the Chief Sustainability Officer. CSOs are helping organisations understand why creating value from sustainability is an imperative by demonstrating its positive correlation with financial performance. The CSO is responsible for the preparation of the sustainability action plan, establishing the organisation’s level of sustainability maturity, determining which ESG areas to prioritise and helping to embed it into the business strategy. The CSO also needs to understand where the organisation’s vulnerabilities lie and put in place strategies to mitigate those risks.
The ESG agenda needs the full support of the board as well. Boards are required to support and provide oversight for their organisations around decarbonisation, reporting on key ESG metrics, and propose ways to manage ESG risk factors. For the Irish boards to respond to the ESG agenda and the “Green Recovery” from COVID-19, it is necessary for them to build a harmonious and reciprocal relationship with the CSO. Currently, it is an evolving relationship.
Six key questions for boards to deliberate on
Sustainability is now a definite part of the board agenda. As boards convert words and strategy into action, they need to reflect on ways to get ahead of regulations and drive concerted engagements within the organisation.
Here are six pertinent questions boards can ask of themselves and the management team.