Sustainability has become a powerful driver of employee engagement, instilling a sense of purpose and pride, while prioritising sustainability is a crucial factor in attracting and retaining top talent. This convergence of the people and sustainability agendas can make the chief people officer (CPO) an ideal leader to spearhead sustainability efforts within an organisation.
The CPO role itself is also uniquely positioned to lead this charge. With their broad network across the business and deep understanding of organisational dynamics, CPOs possess insights and capabilities that may not be as readily available to other functional leaders.
A CPO’s expertise in talent management also helps integrate sustainability into recruitment, development, and retention strategies. Likewise, they are skilled at generating behavioural and culture change – an essential component of embedding sustainability practices throughout the organisation.
As executive search professionals we see an increasing number of CPOs and other HR leaders make sustainability the next step in their careers, with “Chief People & Sustainability Officer” job titles becoming more common. However, taking on this agenda requires navigating a complex landscape where success depends on several key factors. Below, are some key areas CPOs can build on if they are to lead sustainability efforts and drive meaningful change.
Stakeholder engagement
Sustainability initiatives involve a wide range of internal and external stakeholders, including employees, leadership teams, investors, and external communities. CPOs must navigate these diverse groups, ensuring alignment between organisational goals and sustainability efforts.
Internally, CPOs need to engage various departments to drive a unified sustainability agenda. This requires influencing and collaborating with leaders from finance, operations, and marketing to ensure that sustainability becomes a core part of the business strategy.
Often, CPOs will tell us the hardest element of developing a sustainability strategy is determining how best to co-ordinate with the sector as a whole. It requires aligning internal goals with external industry standards, navigating complex regulatory landscapes, and engaging in cross-industry collaborations.
Strategic and commercial acumen
Sustainability initiatives must be consistent with the company’s overall objectives. This means taking a step back to identify connections between the sustainability agenda, the business goals and how best to serve customers, and building this into an aligned strategy.
Sustainability often requires significant investment, whether in new technologies, training programmes, or process changes. Leaders need to assess the ROI of these initiatives and justify them to the executive team and stakeholders. This includes a comprehensive understanding of how sustainability can lead to cost savings or revenue generation.
Sustainability leaders with strong commercial skills can also identify and champion opportunities for sustainable innovation that not only benefit the environment but also enhance the company’s competitive edge. This requires the ability to evaluate how new initiatives will impact the bottom line and how they can be scaled across the business.
Many companies view sustainability through the lens of risk, particularly in areas like compliance, investor expectations, and supply chain vulnerabilities. Leading in this area involves anticipating potential risks, such as those related to environmental regulations or reputational damage, and positioning the organisation to mitigate them effectively.
Legislation and reporting knowledge
Sustainability is governed by a range of evolving regulations, including environmental laws, labour standards, and corporate governance rules. CPOs need to be well-versed in these legal frameworks to ensure the company remains compliant.
Part of this means providing transparent sustainability performance reporting to stakeholders, including investors, regulators, and consumers. Sustainability reporting is increasingly mandatory in many regions, and investors are making decisions based on these reports.
Sustainability leaders must therefore build extensive knowledge of legislation and reporting to ensure the company produces accurate, comprehensive reports that meet regulatory requirements and align with global sustainability standards. These include the Global Reporting Initiative (GRI), the Corporate Sustainability Reporting Directive (CSRD), and the EU Corporate Sustainability Due Diligence Directive (CSDDD) finalised this year.
Regulations around sustainability are also constantly changing, and sustainability leaders must anticipate future legislation that may impact the company’s operations. Understanding the current legal landscape enables them to future-proof their organisation, mitigate risks related to non-compliance and enhance long-term resilience.
Keeping up to date with legislation is a full-time job, and so building a team of the right people with the right knowledge and capabilities will help stay abreast of new developments.
HR Leadership and sustainability: Beyond alignment
To truly lead sustainability within an organisation, a CPO must go beyond aligning employee engagement with sustainability goals. Sustainability leaders must navigate a landscape that requires balancing internal collaboration with broader industry standards, while also translating sustainability efforts into commercial advantages.
This role isn’t just about compliance and reporting; it’s about strategically positioning sustainability as a core part of the business that drives both innovation and resilience. Whilst business trends come and go, the sustainability agenda rests on the reality of managing finite resources in the short, medium, and long term. Sustainability leaders who can blend commercial insight with a commitment to sustainable practices will shape the future of their organisations.
