By Federica Urso

(Reuters) – The variety of firms appointing chief sustainability officers (CSO) jumped threefold in 2021 year-on-year, a research by consultants PwC confirmed on Wednesday, though lower than a 3rd of all CSOs maintain an govt place.

The findings from a survey of 1,640 firms throughout 62 nations present the rising demand for devoted oversight in company boardrooms as corporations face a rising variety of environmental, social and governance (ESG) challenges.

The variety of CSOs holding an govt stage place, alongside board members such because the chief govt or chief monetary officer, hit 28% in 2021, greater than tripling from 9% in 2016, it confirmed.

North American and European firms had been extra more likely to appoint CSOs at first or second administration stage – 48% and 35%, respectively. These within the Center East and Asia Pacific ranked final, with simply 14% appointing at the next stage of seniority.

“Having a CSO sit on the manager board or report on to the CEO or one other board member helps educate and upskill the manager group on evolving ESG points,” PwC stated.

Regardless of extra firms trying to appoint CSOs at the next administration stage, about half of all CSOs are two or extra notches under C-suite stage, the report stated.

The research additionally analysed the diploma to which firms with a CSO are scored on ESG points by exterior information supplier Refinitiv, and located 98% of firms with a prime ranking had an govt with at the very least some sustainability duty.

“Having a CSO on the board sends a robust sign to buyers, prospects and workers that sustainability is a key consideration in each strategic and operational planning,” stated Carl Sizer, ESG Chief at PwC UK.