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10 Essential Skills for Climate Leadership
Business plays a crucial role in contributing to global efforts to reduce greenhouse gas (GHG) emissions. As more and more companies come forward with their sustainability agendas and net-zero targets, there is a growing demand for skilled sustainability leaders to effectively see those plans through. And while demand for leaders equipped with green skills has grown, supply is not keeping pace, pointing to a skills gap.
A recent LinkedIn study shed light on this rapidly widening green skills gap. The study highlighted that between 2023 and 2024, global demand for green talent increased by 11.6%, while supply only increased by 5.6% over the same period. The study highlights the urgent need to meet a growing demand for skilled sustainability leaders in the marketplace. To close this skills gap, it is important to understand the essential skills leaders need to effectively drive sustainability forward in their organizations and sectors.
There are several essential hard and soft skills (and traits) sustainability leaders need to future proof their organizations and thrive in their roles:
1. Business acumen
Business acumen encompasses having a comprehensive understanding of how a business operates, how decisions are made and how it can generate value for stakeholders and drive profits. To drive a company’s sustainability agenda forward, the Chief Sustainability Officer (CSO) needs to work closely with the executive team to ensure sustainability is integrated into the core business. Making the business case for sustainability is an integral part of any CSOs role. CSOs who understand the needs of their businesses and how sustainability can help further an organization’s plans for growth and profitability, will have greater success at getting the buy-in they need from an organization’s executive team and board.
2. Financial skills
Strong financial literacy is crucial for CSOs to translate sustainability impacts into financial terms. They must effectively communicate financial risks and growth opportunities to CEOs and CFOs, highlighting potential cost savings, new market opportunities and the risks associated with not engaging with sustainability. A solid financial background enables CSOs to build the business case for sustainability investments. Additionally, given the minefield of data that needs to be assessed in the field of sustainability, having strong analytical and critical thinking skills are integral to the role of CSO.
3. Sustainability expertise
In addition to harnessing strong business leadership skills, CSOs also need a solid grasp of key technical green skills and subject areas to perform well and lead in these areas. Having awareness of compliance, legislation and regulations, especially those specific to their organization and industry, is key. Understanding the impact of a company’s value chain and the resources needed to support their value chain is also critical. Additionally, CSOs need to be familiar with various reporting frameworks, tools, technology and resources to collect and navigate data, track and monitor a company’s performance. While being an expert in all sustainability areas is unrealistic, having a strong foundation across these areas, supported by a strong network and team of experts, is imperative.
4. Communication skills
A key part of a CSOs job is their ability to foster relationships, build internal and external networks and influence key stakeholders on this journey. To achieve these goals, being an effective communicator is paramount. Telling a compelling story that accurately and effectively conveys a company’s sustainability efforts is essential for engaging stakeholders and keeping them informed about the company’s goals, initiatives and performance. Additionally, when considering the increased scrutiny around sustainability claims and greenwashing, it is imperative that companies get their sustainability terminology and messaging right.
5. Collaboration and networking
This is not a job that one leader can do alone. To drive a company’s sustainability agenda forward, CSOs must collaborate across all business areas, forging relationships with decision-makers in finance, HR, operations, IT, marketing, communications and legal. Building a strong external network is equally essential, especially for addressing broader issues like value chain impact. One of the most effective ways to build networks and exchange knowledge is by participating in various industry and cross-industry events.
6. Bold and purpose-driven leadership
Bold, purpose-driven, unwavering, steadfast, inspiring and passionate are just a few terms that describe the type of leader a CSO needs to be to flourish in their role. Given the many obstacles that sustainability teams encounter in their roles, a bold and purpose-driven leader who can effectively connect the corporate purpose to the values of their employees, navigate challenges, garner support and engage and mobilize employees across an organization will be well poised to advance an organization’s sustainability efforts.
7. Resilience
In the field of positive psychology, resilience is defined as the ability to cope with whatever life throws at you. People who are knocked down by challenges but return stronger than before are resilient. When it comes to sustainability, having the ability to persevere and carry on in the face of adversity is essential.
8. Grit
Closely linked to resilience is grit. Grit is defined as courage and resolve, or strength of character. Drawing on her many years of researching and studying grit, psychologist and academic Angela Duckworth, defines grit as ‘passion and perseverance for very long-term goals’. Based on this definition, which combines passion and perseverance toward long-term goals, grit inherently captures the essence of what it means to be sustainable. CSOs who embody this essential trait will not only be well-positioned to lead their teams through adversity, but they will also foster their growth and resilience along the way.
9. Humility and curiosity
Leading with humility and being curious are essential characteristics of the role of CSO. We have intentionally paired these two traits together because, in our view, being humble and curious are valuable traits that, when put together, can foster a culture that is open to new ideas and innovation. A common misconception in business is that leaders need to have all the answers. In reality, having the humility to be transparent about what one does not know is a strength – and helps build trust with colleagues and teams.
10. Optimism
Despite the many challenges sustainability leaders face, our conversations with CSOs revealed a prevailing sense of cautious optimism. More of a mindset than a skill, perhaps, we felt it was worth highlighting how maintaining an optimistic outlook is vital for a sustainability leader to overcome barriers and succeed in their role. With more businesses striving for change and more fossil-fuel companies joining the discussion, as seen at COP28 in Dubai, there is reason to be optimistic. What also emerged from our conversation with CSOs, however, was a clear recognition that despite signs of progress, the need for more urgent action remains.
Equipped with these essential skills sustainability leaders will be well poised to lead meaningful change across their organizations. We recognize, however, that CSOs cannot do this work alone. To help build this expertise and foster a culture of sustainability, executive teams need to prioritise and invest in training and resources designed to support employees and elevate sustainability skills and knowledge across their organizations. Whether through formal education or on-the-job training, there are many different opportunities to develop skills and expertise in this still nascent and evolving field. What matters more than which path leaders choose to take to hone these skills, is their steadfast commitment to learning, growing and elevating their understanding of sustainability.
Driven by a keen determination to achieve the global climate target set for this decade, and an optimistic outlook, leaders who harness these essential skills will undoubtedly pave the way towards a greener and brighter future.