More than half of large companies now have a C-level sustainability leader

The number of companies with a dedicated board of leadership team member in charge of sustainability is growing, with 56% of the top 250 companies now having a C-level sustainability leader.

This is 11 percentage points higher than two years ago, when only 45% of the G250 – the world’s largest 250 companies – had a dedicated sustainability leader at the top level. 

Among the N100 group of 5,800 companies – the top 100 companies in 58 different countries – 46% have a dedicated sustainability leader, up from 34% two years ago.

According to KPMG, which highlights this data as part of an analysis of sustainability reporting and strategy trends in firms around the world, this suggests an increasing recognition that climate, biodiversity and social crises must be tackled at the highest corporate level.  

“Innovation in leadership abounds as forward-thinking business owners acknowledge that sustainability is a vital, long-term commitment. With more sustainability leaders at the boardroom table than ever before, we continue to roll up our sleeves and confront our global commitments head-on,” said John McCalla-Leacy, Head of Global ESG at KPMG International.

Read also: What companies look for in a Chief Sustainability Officer

Chief Sustainability Officer influence

The report confirms a trend observed in recent years, with companies appointing more Chief Sustainability Officers and making them direct reports to the CEO. Having a sustainability leader as part of the C-suite has also been positively correlated with improved performance.

But in recent months, top sustainability leaders appear to have lost a bit of their influence: several went from reporting to the CEO to reporting to another C-suite member, and some, like HSBC’s Chief Sustainability Officer Celine Herweijer, have been demoted from their organisations’ executive committees – leading to their resignation.

Still, the widespread appointments of sustainability leaders at C-level, as evidenced by KPMG’s research, is a positive sign that companies are taking this issue more seriously.

More companies are also including sustainability elements in leadership pay incentives: 41% of G250 firms, and 30% in N100 groups – both slightly up from two years ago, according to the KPMG report.