Ambiente
Saudi Arabia's private sector international laggard on Green Initiatives - new research from executive search firm Metin Mitchell & Co. shows
Using a simple metric, of the percentage of Saudi companies having a proper Chief Sustainability Officer ( ), compared to a wider international peer group, the extent of the challenge today becomes very clear. Here is what Metin Mitchell & Company's (MM&Co.) research shows:
Proprietary data MM&Co.
It is, at this juncture, worth considering why it makes sense for a company to have a proper CSO to drive environmental, social and governance (ESG) initiatives. The first thing to stress is that the CSO is not just this year's corporate fashion. Nor is it just a way of assuaging our conscience for the sake of our children and grandchildren. It's a bottom line imperative. CEOs who do not appoint a CSO with teeth should, in my opinion, be fired for failing their shareholders. Indeed in the US some shareholders have sued management for failing ESG. It is very clear that most companies that get sustainability right can expect a boost in profits. McKinsey & Co's excellent report: shows that the right ESG strategy can enhance the bottom line in the following ways: top line growth through consumer and community preference vs competitors; cost reductions – less waste; government support; productivity uplift through more engaged employees – remembering that generation Z wants to be doing something meaningful; better investment returns.
Dr. Mitchell referred to a proper 'CSO'. What he means by this is the executive who has the following attributes: empowerment, credibility, influence, coaching skills and critically – direct reporting line to the CEO or, more radically, to the Board, in the manner of a Chief Internal Auditor.
Empowerment & Reporting: a CSO without the authority to work across and down the organization, is pointless. The ability to make change will come, in part, from the hierarchical positioning of the CSO – either through direct reporting line to the CEO or to the Board. The legitimacy of seniority and access to the CEO and/or to shareholders should allow the CSO to work with function and division heads to drive, corporation wide, the organizations' ESG strategy.
Credibility: the individual appointed does not necessarily have to be an ESG specialist – but they have to understand and care passionately about the subject and come from functions that understand business inside out. Thus finance, marketing and operational executives, with a successful track record behind them can make fine CSOs.
Influence & Coaching: ESG should not be a police function but an enabling function to help an organization and its executives reach its environmental goals. The skills of a real coach and influencer are required to nurture performance and encourage change of ethos and behaviour rather than ensuring stick beating compliance with dry rule book procedures that makes everyone's eyes glaze over and ultimately prove counterproductive.
Here is what you can expect your CSO to do for you: design and implement sustainability initiatives; lead the sustainability team; manage the sustainability budget; stay updated on the government's ESG initiatives, plans and regulations; coach and teach colleagues on achieving positive outcomes for the environment and for the organization; track environmental impact and increase profitability through ESG initiatives.
However, the CSO cannot do it alone, the whole organization needs to be involved and play its part and every employee needs to contribute to the discipline of sustainability. As they say, 'there is no planet B'.
The Kingdom has the leadership, the resources and the ambition to be a regional role model in the existential struggle for sustainability - but the business community needs to move much faster. Appointing a strong CSO is the first step in this mission critical journey.
For further reading and viewing MM&Co. recommends the following excellent papers and online tutorials:
Please feel free to reach out to Dr. Metin Mitchell at info@metin-mitchell.com to explore ways in which your company can support the Saudi Green Initiative through the appointment of an effective CSO
By:
Managing Partner
Metin Mitchell & Company
www.metin-mitchell.com
https://www.linkedin.com/in/metinmitchell/
For the link to this white paper please click: https://www.metin-mitchell.com/saudi-green-initiative-a-bold-path-outlined-but-bigger-steps-needed-by-corporate-saudi-arabia/
View original content:https://www.prnewswire.co.uk/news-releases/saudi-arabias-private-sector-international-laggard-on-green-initiatives--new-research-from-executive-search-firm-metin-mitchell--co-shows-301791778.html