A new survey of over 1100 professionals has uncovered an ever-growing proportion of businesses are requesting sustainability professionals to work within legal and finance departments. These findings demonstrate the urgent need for green skills across all departments.Â
Report findings
This research comes from the 2024 edition of the biannual ‘State of the Sustainability Profession’ report from Trellis (formerly GreenBiz). It found that 21 percent of finance departments have added at least one new team member dedicated to sustainability, up from 10 percent in 2022.Â
Likewise, just 13 percent of legal departments added a sustainability hire in 2020, but this has surged to 27 percent. The Trellis poll of 1185 professionals across 17 industries also discovered that 14 percent of Chief Sustainability Officers (CSOs) say they report to the legal function. This is up significantly from 5 percent ten years ago.
Trellis also recorded an increase in reporting to the supply chain, finance, and corporate affairs functions. In tandem, reporting to the health and safety function has decreased considerably and is now only one-third as common as it was in 2014. This trend is likely associated with the rise in mandatory disclosure requirements.Â
Not only that, but also the increasing pressure to align with voluntary disclosure frameworks as they mature. It is worth noting that three-quarters of respondents represented large organisations with revenues of $1 trillion or more. The majority of mandates affect the largest businesses first, and ESG regulations have increased globally by 155 percent since 2011.Â
Many leaders view additional disclosure as a good thing as it should force laggards into action and enhance data over the long term. In saying that, the report concludes that teams could face a slog in relation to data assurance fire drills and software implementations through 2026. This is when disclosure and reporting requirements could have transitioned to other business functions.
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Seniority, job security and pay
The survey also sheds light on how much seniority, salary, and job security the average sustainability professional benefits from. When compared with job security in 2020, businesses are far more likely to secure full-time sustainability professionals than to turn to external consultants. In fact, one in five businesses now have an ‘ESG controller’.
This individual is responsible for overseeing the data processes and systems underpinning compliance with legislation and regulation. Moreover, it was reported that three in ten sustainability leaders report directly to the chief executive, up from two in ten in 2022. The sectors where this is most common are real estate and construction.
On the other hand, CSOs in tech and retail are the least likely to have a direct link to the chief executive. Furthermore, most businesses (61 percent) require their sustainability leader to brief the board of directors frequently. The report highlights that having these regular check-ins can help companies better comprehend related opportunities and risks. This Trellis report also shared that while sustainability professionals’ pay has been steadily rising, many organisations are still at risk of undervaluing these hires.Â
This may be due to a range of factors, from age to perceived experience. One in three sustainability vice presidents and three out of four sustainability managers are under 40. The Trellis report adds that most teams are being requested to do more with less, with much of the additional workload coming as a result of mandatory disclosure requirements.Â
Final thoughts
The Trellis report highlights a profound shift: sustainability is no longer a standalone function but a vital thread woven into the fabric of every business role. As sustainability professionals expand their influence, it’s clear that organisations are beginning to recognise the critical importance of integrating ESG considerations into every aspect of decision-making.
This growing significance presents opportunities and challenges, requiring professionals to adapt quickly to evolving mandates and expectations. For businesses to thrive in this new landscape, sustainability education for professionals is paramount to navigate the complexities. Our courses provide the practical expertise needed to empower professionals, helping them embed sustainability into their organisations and accelerate change.
