Corporate sustainability programs have increasingly become a business imperative. They can help reduce carbon footprints and waste, improve brand reputation, and boost employee retention—ultimately, driving long-term value. Yet a new report by The Conference Board finds that while some progress has been made in integrating sustainability, many companies have an opportunity to better reap the benefits by further developing such programs.

It turns out that less than a third (31%) of sustainability executives report that their organizations have fully implemented corporate sustainability programs. 48% are in the mid-stage of maturity, while 21% are in the early stage of their sustainability journey.

The report also sheds light on what could be affecting the progress of these programs. According to 60% of sustainability executives at large US companies, organizing and implementing their sustainability strategy is their number-one challenge. Other challenges include embedding sustainability into the corporate culture and communicating their sustainability story to multiple constituencies.

"Creating the right structure to integrate the company's sustainability strategy into its operations, products, and services—all while coordinating efforts across functions—poses a significant challenge for chief sustainability officers (CSOs). A successful sustainability transformation requires a well-defined plan of action. It should not only set goals but also outline the strategy and the means to achieve such goals," said Nathalie Risse, Senior Researcher at The Conference Board ESG Center and author of the report.

The report offers CSOs and the C-suite insights for navigating organizational challenges related to the sustainability transformations of their companies. The findings come from a survey of more than 100 sustainability leaders—primarily chief sustainability officers and executives with equivalent responsibilities—at predominantly large US companies. Also informing the insights are discussions with sustainability executives on their evolving roles, their organization's sustainability programs, and the effectiveness of their teams and steering committees.

Additional insights include:

Sustainability programs' state of progress

Half of companies are in the mid-stage of integrating their sustainability programs into their organizations.

• 21% of surveyed companies are in the early stage of their sustainability journey: they are in the process of establishing a sustainability strategy and governance structure.

• 48% are in the mid-stage of maturity: they have developed a strategy and are in the process of integrating sustainability throughout their organizations.

• 31% are in the advanced stage: their strategy is well-implemented throughout their firms.

The role of the CSO and sustainability teams

A growing workload: Nine out of 10 sustainability executives anticipate more responsibilities for the CSO in the coming years.

• 87% of sustainability executives expect CSOs' responsibilities to increase in the next 3-5 years.

• Only 6% expect CSOs' responsibilities to stay the same, and 2% expect them to decrease.

"Organizations should assess both the existing and future demands on CSOs and incorporate these assessments into strategic planning. They should also secure support from internal 'allies' from other departments or functions to reduce CSOs' overall workload. By doing so, companies can keep the CSO focused on the most critical elements of their sustainability transformation, such as high-priority strategy execution and value creation," said Matteo Tonello, Managing Director of The Conference Board ESG Center. 

Most companies just recently appointed a CSO.

• 68% of companies have had a CSO or equivalent for less than five years.

Most sustainability executives expect to continue to grow their sustainability teams.

• 64% of respondents foresee an increase in the number of full-time employees working on sustainability across their organization in the next 3-5 years.

"As the demands on sustainability teams continue to grow, it's important for sustainability departments to prioritize upskilling as a part of their employee development programs. Equipping employees with new or advanced skills, such as sustainable supply chain management and technologies for optimizing sustainability reporting, will enhance the organization's sustainability capabilities and performance," said Lindsay Beltzer, Senior Program Producer at The Conference Board ESG Center.

Effectiveness of sustainability programs, teams, and steering committees

Sustainability programs: Companies are divided on their effectiveness.

• Effective/very effective: 48% of surveyed companies feel this way about their sustainability programs.

• Somewhat effective: 47% feel this way.

• What's behind the effectiveness: This rating tends to be higher in companies with bigger sustainability teams; sustainability steering committees; and those with a CSO for an extended period.

Sustainability teams: Most companies give high marks to their effectiveness.

• Effective/very effective: 73% of surveyed companies feel this way about their central sustainability teams.

• Somewhat effective: 24% feel this way.

• What's behind the effectiveness: This rating tends to be higher when the company has a sustainability steering committee; and the CSO has a longer tenure or reports directly to the CEO.

Sustainability steering committees: They score the lowest when it comes to their effectiveness.

• Effective/very effective: 46% of surveyed companies feel this way about their sustainability steering committees at the C-suite level, and 36% about their steering committees below the C-suite.

• Somewhat effective: 12% feel this way about their sustainability steering committees at the C-suite level, and 27% about their steering committees below the C-suite.

• What's behind the effectiveness: This rating is often correlated with the tenure of the CSO; the existence of a charter that outlines the committees' roles and responsibilities; the maturity of the sustainability programs; and the company size, as larger companies have more resources.