Is C-Suite Collaboration the Key to Sustainable Growth?

A playbook produced by the Institute for Real Growth (IRG) has outlined new guidelines for delivering business growth alongside sustainability commitments. 

Developed in collaboration with Ipsos, Ad Net Zero and Google, the report suggests that strengthening the relationship between the Chief Marketing Officer and Chief Sustainability Officer is key to driving sustainable growth.

Senior leaders surveyed from overperforming companies – defined in the report as businesses with three years of superior revenue growth compared to their competitors – prioritise strategic collaboration between the CMO and CSO to drive both long and short-term growth while creating value for stakeholders.

How CMO-CSO partnerships can drive growth 

The IRG finds that 25% of CMOs in overperforming organisations work effectively with their CSOs – suggesting that high performing companies are more likely to recognise the two functions as being complementary. 

Often, one of the biggest challenges when it comes to promoting sustainability initiatives is the difficulty of translating complex information into customer-friendly narratives, according to the playbook. 

The potential for oversimplification can lead to accusations of greenwashing, but close collaboration between the CMO and CSO can help develop engaging yet accurate narratives that will resonate with consumers and build long-term trust. 

Guidance from the CSO can also help the CMO report on the most important sustainability issues within the company while avoiding relatively insignificant features, such as reusable cutlery. 

Touching on the company’s approach to sustainability in its business model Hanne Sondergaard, CSO of Arla, says in the report “At Arla, we always seek to drive new consumer benefits and more sustainable growth. 

“Having worked on both sides of the CMO-CSO fence, I work closely with our CMO to review the innovation portfolio for opportunities to partner and achieve both benefits.”

Business growth through regenerative models

Considering the practicalities of collaboration between the CSO and CMO, as well as how it helps their organisations achieve sustained business growth, the IRG suggests they must work as ‘strategic co-pilots’. 

The playbook suggests a key approach to this, which C-suite leaders can employ to create value for their customers, employees and markets. 

The foundation for developing this collaboration begins with an understanding of the organisation's stakeholders, according to the IRG. The majority of overperforming organisations (76%) understand their stakeholders’ needs compared to a minority (17%) of underperforming companies. 

By understanding the human realities behind sustainability challenges, CSOs can move beyond metrics to connect with lived experiences, while CMOs can see sustainability outside of direct brand impact, according to the IRG.

From there, CMOs and CSOs must partner to help their company create a shared vision for their market, to align the C-suite on the extent to which it will incorporate sustainability into the company’s purpose. 

Long-term thinking is key, with overperforming companies investing twice as much in foresight as insight. 

Sustainability as a business imperative

Sustainability is often seen as a cost centre, according to the IRG, but 90% of overperforming leaders view it as a business growth opportunity, with organisations grounded in creating value in this way likely to outperform those who do not. 

One third of Gen Z surveyed by KPMG in 2023 revealed they had turned down job offers from companies with poor ESG credentials, suggesting that sustainable practice is playing an increasingly important role in talent acquisition. 

Driving more sustainable business growth also presents companies with significant opportunities to achieve higher valuations, according to the playbook. 

Businesses transforming sustainability from an add-on compliance measure to a core business strategy can realise real value for capital markets – including community reputation, employee advocacy and brand loyalty.