Recruiters are in charge of recruiting. Marketers are in charge of marketing. Salespeople are in charge of selling. But who’s in charge of ESG? Although most mid- to large-size companies are embracing the idea of ESG, it’s pretty hard to find a consistent answer. What makes it especially difficult is that ESG encompasses a broad range of disciplines, including supply, operations, human resources, and more.
As a result, the person — or people — who are in charge of ESG can vary widely from one company to the next. Let’s take a look at what it means to be in charge of ESG , and how companies are choosing to delegate this responsibility.
What does it mean to be ‘in charge of ESG’?
To improve their sustainability outcomes, many companies have adopted some version of the motto ‘everyone’s responsible for sustainability’. The idea behind this line of thinking is that every employee has a role to play in helping the company achieve its sustainability goals, just like everyone has a role to play in safety.
However, there must also be someone who is ultimately responsible for the company’s ESG efforts — in the same way that the VP of Safety is ultimately responsible for overseeing the company’s safety efforts.
Who’s in charge of ESG?
Who’s in charge of ESG depends on the size of the company and its organizational structure. Large global corporations may have a dedicated person who leads the ESG program. Meanwhile, smaller organizations may rely on their EHS function to be in charge of ESG.
Chief Sustainability Officer or Vice President of Sustainability/ESG
In some cases, companies may establish a dedicated position to lead the company’s ESG efforts. This person often holds the title of Chief Sustainability Officer (CSO) or Vice President of Sustainability.
More recently, though, we’re seeing an uptick in the number of companies naming a Chief Environmental, Social, and Governance (ESG) Officer. Verizon is one example of a company that has appointed a chief ESG officer.
Gartner reports that the head of ESG is responsible for leading ESG programs at 21% of companies, while the head of sustainability is the program leader at 14% of companies.
Regardless of the exact title, these roles have one thing in common: They often report directly to the CEO. According to Gartner, 42% of chief sustainability officers or heads of sustainability report to the CEO. Similarly, 34% of chief ESG officers or heads of ESG report to the CEO. Their direct reports often include EHS, supply, and communications.
The EHS/ERM function
Smaller companies might not have the resources or desire to create a dedicated ESG or sustainability position. This means the responsibility for ESG will fall on an existing employee — and the EHS function, or ERM, is one of the first in line for the job. (Gartner found that heads of HR and DEI are also frequently tapped for this role.)
In 2023, more than half (57%) of EHS leaders strongly agree that they will be responsible for driving ESG initiatives at their organizations, according to Verdantix’s EHS Global Corporate Survey.
As such, they are responsible for establishing metrics, collecting data, reporting to internal and external stakeholders, and all the other responsibilities that come with the ESG leader’s role. This in addition to their current responsibilities related to safety, environmental management, and compliance.
Final thoughts
Knowing who is in charge of ESG is critical for driving the company’s sustainability initiatives forward and staying accountable to the targets the organization has laid out. The person who is responsible for this could be a dedicated sustainability officer, or it might be someone from the EHS department.
One thing is clear: Whether they’re leading the charge or not, EHS leaders will have an important role to play in ESG. Knowing this, you may find our free ESG guide helpful.
