The document discusses the role of Chief Sustainability Officers, including how their functions are typically structured within organizations, trends in sustainability budgets, and how they can maximize influence. It finds that sustainability teams usually report to communications departments and have small budgets but outsized influence. It provides advice on leveraging small teams and budgets, and emphasizes developing an authentic sustainability mission to drive change.

1. The
Chief
Sustainability
Officer
Organiza7on
Structures,
Budgets
and
Mastering
the
Art
of
Influence
David
Schatsky
GreenResearch

2. The Chief Sustainability Officer
Organization Structures, Budgets and Mastering
the Art of Influence

3. About Green Research
• Research, advisory and consulting firm
• Focus on corporate sustainability, clean tech,
alternative energy
• Offer market intelligence, strategic advice,
best practices
• Tools: executive research; consumer research;
case studies; market forecasts
• Based in New York City
2 © 2011 Green Research

4. Key Questions
• How is the sustainability function structured
at major companies?
• What are the trends in sustainability budgets?
• How can sustainability executives maximize
their influence inside organizations?
• How can execs help frame the sustainability
mission at their company?
3 © 2011 Green Research

5. Key Findings
• Public affairs or marketing departments are
the most common home for sustainability
teams.
• Sustainability budgets are tiny, but often
have outsized influence.
• Companies frame the central purpose of their
sustainability programs in highly diverse
ways; authenticity is best.
4 © 2011 Green Research

6. Study Participants Represent a Broad
Range of Industries
Under $1B
26%
$10B - under $1B - under
$50B $10B
66% 8%
© 2011 Green Research
Source: Green Research executive interviews, Capital IQ, Forbes.com
5 (2/11), n=33 (US and Europe)

7. Core Responsibility: Leadership,
Leverage and Communication
• Shaping vision
• Developing strategy
• Coordinating execution
• Setting and communicating goals
• Engaging outside experts, NGOs and other
stakeholders
6 © 2011 Green Research

8. Sustainability often Reports to a
Communications Group
Public Affairs 21%
Supply Chain 15%
Legal 15%
Operations/Facilities/HR 15%
Marketing 9%
CEO 9%
COO 3%
Strategy 3%
Product 3%
Finance 3%
Environment 3%
0% 5% 10% 15% 20% 25%
Percentage of Companies
Source: Green Research executive interviews (2/11), n=33 (US and
7 © 2011 Green Research
Europe)

9. Small Teams Seeking Outsized Impact
• Sustainability teams are typically small—fewer
than 5 or 6 staff and often just 1 or 2.
• They work through green teams, experts on
other teams.
• Effective sustainability leaders have board
support, aligned incentive systems and powers
of persuasion.
8 © 2011 Green Research

10. At Henkel, Sustainability Overseen by the Board
in Dialog with Business and Functional Heads
9 © 2011 Green Research Source: henkel.com

11. At BASF, Regional Steering Committees Are Coordinated
by Corporate-Level Sustainability Council
Source: basf.com
10 © 2011 Green Research

12. Consulting, Communications and Memberships
Are Major Spending Categories
Consulting 71%
Memberships 54%
Marcomm 42%
T&E 29%
Software 25%
Research/Info 17%
Donations 8%
Other 8%
0% 20% 40% 60% 80% 100%
Percentage of Companies with Item among Top 3 Spending
Categories
Source: Green Research executive interviews (2/11), n=24 (US and
11 © 2011 Green Research Europe)

13. Executives Seek to Leverage Small
Budgets with Big Influence
Facilities
Projects
Sustain-
ability Supply
Chain
Budget Influence
Product
Develop-
ment
Source: Green Research analysis
12 © 2011 Green Research

14. We Find Diverse Sustainability Visions,
Missions and Goals
Vision Broad Narrow
Scope Broad Narrow
Goals Ambitious Modest
Objectives Strategic Tactical
Position Leadership Followership
Influence External Internal
Responsibility To the world and To ourselves and
society our stakeholders
13 © 2011 Green Research

15. Tools for Formulating Vision, Mission
and Purpose
• Customer attitudes and behaviors
• Employee attitudes and behaviors
• Competitors and industry leaders
• Greatest environmental impacts
• Principal environmental threats
• Promising environmental opportunities
• What can be controlled
• The link to strategy and corporate mission
14 © 2011 Green Research

16. Futures
• Inside influence is key today. Outside influence
is growing in importance.
– Supply chain
– Customers
• Life cycle assessment and other science-based
tools can foster innovation and harder-won
sustainability gains
15 © 2011 Green Research

17. Advice
• Make the most of a small team and a small
budget
• Learn to maximize budget influence by
working with and through others
• Wielding influence inside and outside the
organization is a core competency of
sustainability execs
• Embrace authentic mission to drive change
16 © 2011 Green Research

18. Contact:
David Schatsky
+1 (646) 783-8337
dschatsky@greenresearch.com
greenreseach.com