New regulations, tight deadlines: What Should CSOs Prioritize for 2025?

Explore insights from our webinar with Reckitt and BCG on 2025 planning priorities and strategies to cut Scope 3 emissions by 50% by 2030

Topic(s)
Decarbonization
,
Last updated
December 2, 2024
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Summary

The world is grappling with the sobering realization that we can no longer keep global temperatures below 1.5 degree celsius, as outlined in a recent UNEP report. For organizations, this marks a pivotal moment. Sustainability is no longer optional—it’s a fundamental responsibility and also presents early adopters with a significant leg-up, economically. 

Our recent Carbon Survey, conducted with BCG, highlights both the challenges and potential rewards for organizations navigating sustainability practices. While only 9-10% of companies report emissions across Scopes 1, 2, and 3, climate leaders are already reaping significant benefits, achieving value creation equivalent to 7% of their sales—an average net gain of $200 million. The takeaway is clear: integrating sustainability into corporate strategy drives both environmental and financial gains.

To help Chief Sustainability Officers (CSOs) prepare for the road ahead, we hosted a webinar featuring industry leaders who shared strategies and insights for planning through 2025. Below is your playbook for leading impactful sustainability efforts:

1. Set ambitious and measurable goals

Ambitious goals are essential for driving momentum, but they must be grounded in data and aligned with business capabilities.

For example, Reckitt, a global hygiene, health and nutrition brand, has committed to reach Net Zero by 2040, with an interim goal of reducing total emissions by 40%. Their efforts prioritize measuring and reducing Scope 3 emissions, which account for 97% of their carbon footprint. This focus has informed key decisions in areas such as raw materials, packaging, and logistics.

2. Adopt the right technology early

Technology is a game-changer in sustainability, and early adoption can deliver both operational efficiency and a competitive edge.

Artificial Intelligence (AI) is particularly powerful in simplifying and accelerating decarbonization efforts. As discussed in a recent webinar on how Generative AI can help companies reach Net Zero, the applications include carbon accounting, improving data accuracy, and identifying areas for immediate action. Companies that invest in AI tools early gain better insights and stay ahead of regulatory and market shifts.

3. Align business and sustainability goals

Sustainability and profitability are deeply interconnected, and successful CSOs understand how to align the two.

Hassan Siddiqui, Project Leader at BCG, emphasized that sustainability isn’t just a compliance issue; it’s a business imperative. Customers, investors, and regulators are increasingly demanding transparency and sustainability metrics. 

4. Balance trade-offs strategically

Every sustainability journey involves trade-offs. The key is to manage them with data-driven decisions.

David Croft , Global Head of Sustainability at Reckitt, highlighted the need for pragmatism. Not every initiative will deliver immediate returns, but bold actions often yield long-term value. Prioritizing high-impact projects based on rigorous analysis ensures resources are deployed effectively, even when budgets are tight or timelines are short.

The path forward

The role of Chief Sustainability Officers has never been more critical—or more complex. Success requires setting bold goals, leveraging cutting-edge technologies, aligning sustainability with core business needs, and balancing competing priorities.

But the rewards are worth it. Companies that act decisively will not only mitigate risks but also unlock significant economic and reputational value.

Your next step: Equip your organization for the future. Explore AI-driven tools, engage your teams, and lead with a sustainability-first mindset. Join the conversation with industry leaders to stay ahead of the curve and drive the change the world needs.

Sustainability is no longer about meeting expectations—it’s about shaping the future. It’s time to act.

Samrudhi Mehrotra

Watch our on-demand webinar to explore insights from Reckitt, BCG, and CO2 AI on closing the gap in sustainability targets and actions with AI-driven strategies and proven tactics for 2025.

Watch the webinar

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