Businesses urged to appoint Chief Sustainability Officers

TechMarketView has called for businesses to appoint Chief Sustainability Technology Officers (CSTOs) as part of a broader trend of integrating sustainability into business strategies.

The call forms part of the findings revealed in the company's Sustainability Technology Activity Index for 2024, which analyses emerging trends in the sustainability market.

The index, based on data from 1,450 global software and IT service providers and technology user organisations during the first quarter of 2024, indicates a forthcoming wave of innovation situated at the convergence of business operations, technology, and environmental management. Given this trend, TechMarketView suggests that entire workforces should not only understand the significance of sustainability but also be adequately equipped to adopt and utilise new sustainability technologies.

The report specifically highlights that a significant portion of sustainability activities observed globally, around 20.5%, involve Environmental, Social, and Governance (ESG) reporting. This trend is being accelerated by evolving regulatory mandates. When combined with core business activities—such as Strategy & Planning, Industrial Process Innovation, and Supply Chain Optimisation—nearly 46% of sustainability efforts are integral to central business operations. Despite this growing integration, the index suggests there remains substantial scope for businesses to further embed sustainability into their core operations.

One of the key recommendations from TechMarketView's report is the introduction of the role of Chief Sustainability Technology Officer within organisations. These officers would be charged with the task of ensuring the seamless integration of sustainability considerations across all facets of the business and the technologies employed. This role would complement and enhance existing efforts by Chief Sustainability Officers (CSOs) and Chief Technology Officers (CTOs).

Craig Wentworth, Principal Analyst at TechMarketView, elaborated on this recommendation, stating, "Although companies have been appointing Chief Sustainability Officers (CSOs) for a while now, as sustainability concerns become more widely incorporated into business strategy and operations, we call on businesses to appoint ‘Chief Sustainability Technology Officers’ to ensure the coherent integration of sustainability considerations into all aspects of business and tech. At the very least, CSOs and CTOs should work closely to discharge those responsibilities together."

The call for CSTOs comes in response to the increasing complexity and necessity of integrating sustainability within all dimensions of business operations and technological frameworks. The new role is seen as a critical step to achieving cohesive and comprehensive sustainability strategies across organisations, facilitating not only regulatory compliance but also innovation and operational efficiency.

TechMarketView's recommendations place a spotlight on the evolving nature of sustainability practices in the business world, underscoring the need for specialised roles to manage the intricate challenges and opportunities that sustainability presents. The analysis and recommendations from the Sustainability Technology Activity Index are expected to inform both current practices and the strategic planning of organisations looking to strengthen their commitment to sustainability.