ESG LEADERSHIP
Countless surveys and reports reach one consistent conclusion – having more women in leadership roles is the best way for a business to increase profits , innovate , and reach sustainability goals .
Despite this , the World Economic Forum ’ s latest Global Gender Gap Report states that less than a third ( 32.3 %) of senior leadership positions are held by women , compared to making up 41.9 % of the total workforce in 2023 .
Progress has been made , but it remains slow , and the increased emphasis on sustainability is helping to blaze a trail for a new wave of women heading to the C-Suite .
The rise of the Chief Sustainability Officer has had a significant impact on the makeup of the C-Suite in the last decade , and has also gone a way towards addressing the gender imbalance – as more companies elevate the sustainability leader ’ s role which is increasingly taken by women .
This double whammy has been a boon for women .
Sustainability as route to leadership Insight from Oliver Wyman says that up until a few years ago , the sustainability leadership role was “ generally excluded from the boardroom and key decision-making , buried two or three tiers down or limited to heading up sub-committees . Now , it is seen as essential to shaping the strategy and future of businesses ”.
Research from Climate Impact Partners in 2023 found that 43 % of Fortune 500 companies have a CSO or equivalent . In 2020 , that figure stood at just 19 %. What ’ s more , CSOs are increasingly not only operating at C-Suite level but also have a direct line to the CEO – you could say they have become the CEO ’ s right-hand woman .
“ WHAT WE ’ RE NOT SEEING YET IS A PATH FROM CSO TO CEO . BUT I THINK WE WILL GET THERE , ESPECIALLY AS SUSTAINABILITY BECOMES INCREASINGLY SYNONYMOUS WITH BUSINESS SUCCESS ”
ELLEN WEINREB FOUNDER , WEINREB GROUP
As a route to leadership goes , sustainability is opening the door for more women to advance at a faster rate than other business areas , certainly in developed economies like the US – where the percentage of women in the CSO role doubled between 2011 and 2023 , according to the 2023 Weinreb Group Chief Sustainability Officer Report , reaching 58 %.
“ We see more women than men in the sustainability pipeline , and we also know that the most effective CSOs combine strategy and business acumen with strong communication skills , which has traditionally been considered a female leadership quality ,” Ellen Weinreb , founder of Weinreb Group , a global sustainability and ESG recruitment firm , tells Sustainability Magazine .
“ It ’ s exciting to see more women in the C Suite , and I think it ’ s generally understood that companies thrive with diversity at all levels . What we ’ re not seeing yet , however , is a path from CSO to CEO . I think we will get there , especially as sustainability becomes increasingly synonymous with business success .”
96 February 2024