For larger companies, Teneo notes that CEOs are named in sustainability reports to be ultimately responsible for their corporate climate strategies a third of the time – almost double the amount disclosed in 2023 (18%). CEOs signed a supermajority of sustainability report cover letters this year, while other executives (such as chief sustainability officers) signed cover letters about a quarter of the time.
Cooley’s Beth Sasfai notes that even at smaller companies, CEOs sometimes take a surprising interest in sustainability reporting, including on technical matters, such as emissions inventories. Beth also cautions not to read too much into climate disclosure about the nature of CEO oversight – or CEO signatures meaning too much about what happens in practice. CEOs are signing these letters because a top-down approach is needed to integrate a company’s sustainability strategy into its business strategy.
These CEO letters shouldn’t be taken to mean that they are overseeing sustainability. Rather, it’s a signal that this is perceived as mission critical to the organization, and that different functions (finance, operations, legal, product design) need to get out of their silos and work together since sustainability is a team sport.
Authored by
Broc Romanek