Will the Rise of the CSO Pave the Way for More Women CEOs?

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 (31.7%) of senior leadership positions are held by women.

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 C-Suite in the last decade and is helping to address the gender imbalance as more companies elevate the sustainability leader’s role – a position which is increasingly taken by women.

Sustainability as route to leadership

Insight from management consulting firm 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.

As routes to leadership go, sustainability is opening the door for more women to advance at a faster rate than other business areas. 

In the US, the percentage of women in the CSO role doubled (reaching 58%) between 2011 and 2023, according to the 2023 Weinreb Group Chief Sustainability Officer Report.

“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,” says Ellen Weinreb, founder of ESG and sustainability recruitment firm Weinreb Group.

She added: “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.”

When it comes to the C-suite, women’s representation is just 25% on average, compared to 46% of entry-level positions.

This varies across industries, with women faring better in education, retail, and consumer services sectors and worse in real estate, construction, and financial services.

Having more female representation in senior leadership roles like CSO is a significant step forward.

‘You have to see it to be it’

It’s a classic case of “you have to see it to be it” and when it comes to the top job, that visibility is poor. 

Currently only 11% of FTSE 100 companies have women CEOs. At the current rate of change, it is estimated that there will only be an equal number of men and women leading FTSE companies - reflecting demographics - by 2057.

Figures from Fortune 500 companies reflect this trend, with only 52 women CEOs running Fortune 500 companies (10.4%). 

Of these 52 women CEOs, around a quarter (12) were appointed to their positions in the last year.

Industry leaders suggest that the CSO role could help address this gender gap. 

Female leadership in aviation

Delta Air Lines’ CSO Amelia DeLuca said sustainability has always played a role in her personal life but it took years working at Delta before it became a career.

“From the get-go, I was hooked because sustainability is all about innovation, partnerships, data and blazing new paths without always knowing if you’ll reach the destination or need to pivot after a short layover,” said DeLuca.

She added that while the aviation industry historically has not had a lot of female representation, let alone in the C-suite, that has been changing at Delta for some time.

DeLuca said: “Every leader should find opportunities to lift women and other underrepresented groups up, give them a voice when they are not in the room and find opportunities to bring them into the room all together.”

She added: “I do think that the CSO role is uniquely positioned because success doesn’t just lie with what my team does. It’s also how we communicate and partner with stakeholders, industry collaborators, investors, policymakers and more. It’s a complex web of players who all need to be engaged.”

According to Heather Cykoski, Schneider Electric's SVP of industrial automation US and process automation Canada, the shift within the corporate world towards sustainability and social responsibility is serving as a catalyst for change in terms of female leadership and diversity. 

There are several reasons why this shift in corporate values may contribute to more opportunities for women in leadership roles, highest among them being a balanced alignment with values. 

“In my experience, many women gravitate towards organisations that align with their personal values, including those related to sustainability and social responsibility,” said Cykoski, who has spent 25 years in energy and industrial engineering and worked all over the world.

She added: “As companies prioritise these values, they may become more attractive to female talent, ultimately contributing to a more diverse leadership pool that is inherently more inclusive. 

“Companies that prioritise sustainability are usually more likely to embrace diverse leadership as it aligns with the holistic approach needed for effective sustainability initiatives.”

For DeLuca, the role of a sustainability leader is to provide the energy and advocacy required to champion progress, even when it is difficult or inconvenient for an organisation to do so.

It means providing a rational and unrelenting voice that does not shy away from challenges or barriers while being able to communicate clearly so stakeholders don’t lose sight of the ultimate goals.  

“When I think about women’s business leadership more broadly, women are only going to continue to grow into more leadership positions,” said DeLuca. 

“We are no strangers to doing hard things, we are often great communicators and have historically been strong people leaders, especially through transitional and evolving times.”

Cykoski said that although there are positive signs, more companies need to “walk the talk” when it comes to recognising diversity.

She said as the significance of Environmental, Social, and Governance (ESG) continues to grow, and sustainability ingrains itself into the core of company strategy and culture, she has observed an increase in the elevation of women to senior leadership roles, including board seats.

“Nevertheless, during my mentoring sessions with Advancing Women Executives (AWE), we continue to discuss the need for greater representation of women on board seats. It can be irksome for me when companies assert a lack of qualified individuals, especially considering there are undoubtedly highly qualified women available,” said Cykoski. 

She was quick to add that Schneider Electric goes beyond just talking about its commitments. The company actively seeks partnerships that embrace diversity, making inclusivity a priority in collaborations. 

She said: “It's not just a pledge; we're taking real steps and consistently measuring and tracking our progress within our business. We're creating opportunities for women and witnessing their growth first-hand.”

DeLuca said data shows more diverse leadership and more diverse teams boost productivity, attract new talent, build more trust, boost profitability, create new opportunities, and more.

As companies continue to invest in ESG strategies, they will continue to see the benefits of more diverse leadership teams and prioritise those leaders as part of their culture and strategy. 

While the role of CSO currently offers a pathway to the C-suite to more women, it’s vital to have similar routes in other leadership roles, too. So how can that be achieved?

“People are what matter, so finding opportunities to provide mentorship, sponsorship, and advocacy for women and diverse voices is critical to enhance this pathway,” said DeLuca. 

She added: “Give people projects, teams, and initiatives to show their value and provide mentorship along the way that leads them to success. If you see other opportunities where they can succeed, advocate for them – especially if they aren’t in the room. That’s how I got to where I am in my career, so I am proof that this works.” 

The increasing emphasis on ESG and DEI demonstrates the need for more empathetic leadership, according to Cykoski. 

She said women often exhibit greater interpersonal skills and emotional intelligence, placing them in an advantageous position to excel in leadership roles that require understanding and addressing diverse stakeholder needs. 

“Companies seeking to enhance their stakeholder relationships will find that women leaders bring a unique perspective and skill set to foster a more inclusive and compassionate corporate culture,” Cykoski said.

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