Two-thirds of CSOs say ESG-related regulation enables impact

Figure is much higher in North America than Europe, claims survey, which explores current experiences of CSOs

Most Chief Sustainability Officers (CSOs) believe that regulation “enables meaningful, strategic impact,” according to a study published this week. 

Non-profit corporate sustainability network BSR interviewed 31 CSOs about their current experience of the role.

Overall, 64% said the raft of regulation introduced in recent years to drive ESG- and sustainability-related outcomes was helpful. 

The figure was much higher in North America (71%) than Europe (50%), which BSR attributed to “the value of regulations in mobilising companies, especially in the US, which has often been considered ‘behind’ Europe on sustainability”.

However, it could also be that current regulation in Europe is significantly more burdensome than it is in the US and Canada. 

The report concluded that “sustainability leaders are using heightened regulatory mandates to garner resources and integrate sustainability into risk, compliance, finance, and other core functions”. 

But Kate Brandt, Google’s CSO and one of those interviewed by BSR, said on LinkedIn that CSOs were “at risk of becoming overly focused on compliance at the expense of innovation and strategic foresight”. 

Another, unnamed, interviewee said it was “hard to maintain the balance between regulation and a visionary approach to impact”. 

“I hope this is temporary and that, in the next 2-3 years, sustainability is operationalised, with the right people in the right places. Once it’s stabilised, we can get out of the weeds and back to a visionary approach.”

BSR noted that many CSOs “feel whipsawed” – stuck between competing pressures and priorities with limited resources. 

Only half of those interviewed felt they spent more than 70% of their time on “high impact” work. Again, the figure was higher in the US (64%) than in Europe (40%). 

“Respondents were evenly split as to whether they spent more or less time on high impact work now, compared to three years ago,” observed BSR, adding that CSOs who reported having more time for high impact work experienced a much smaller increase than the decrease experienced by those claiming to have less time. 

Interviewees were also split on whether the overall direction of travel is positive. 

“In a way, I am back to what it was like before sustainability was popular in the company,” said one CSO, referring to tendency for firms to keep quiet about their environmental and social ambitions in the face of political backlash and tougher greenwashing rules.  

“We were convinced then that it would be necessary to work in the shadows to be ready for when the company would have to do something. We are back to this mode.”

Another reminisced about the “inherent forgiveness” there used to be about making “imperfect” progress towards bold goals. 

“I don’t feel that anymore. As a practitioner, now I feel incredibly cautious, conservative and muzzled.”

However, another said the clamp-down on big statements and ambitions was a good thing. 

“The net of all this has been a sharper focus on being super intentional on what we’re saying, no empty claims and less of whatever semantics people were using for that day of the week.”