The role of chief sustainability officer (CSO) is diminishing in prominence at major corporations as business priorities shift from broad sustainability ambitions to resilience and risk management, according to industry experts and former executives.

Recent changes at several leading companies underscore this trend. Apple eliminated its CSO position, moving environmental teams to report directly to the chief operating officer instead of the chief executive. Unilever followed a similar path after its CSO, Rebecca Marmot, stepped down last year; her responsibilities were absorbed by the head of corporate affairs and communications. HSBC downgraded its CSO role from the executive committee level.

These shifts coincide with tighter budget constraints and recalibrated sustainability targets, sources say. Sabine Hoefnagel, CEO of sustainability consultancy ERM, noted that while sustainability roles remain, the function has become more fragmented, with central teams shrinking and losing influence. She added that companies are increasingly focused on return on investment rather than broader environmental goals.

The movement away from an expansive sustainability focus predates recent political developments but has been accelerated by factors such as rising energy costs and geopolitical tensions. Magali Anderson, former CSO of the Swiss cement company Holcim, pointed to the war in Ukraine as a turning point that shifted corporate attention toward revenue amid energy price surges, reducing the emphasis on sustainability in investor discussions.

This realignment is reflected in corporate communications. An analysis of FTSE 100 companies’ annual reports reveals a notable decline in references to “net zero” and “climate change” since 2022—dropping nearly 30% and 20% respectively. The reduction is particularly pronounced in the energy sector, where mentions of “net zero” fell by 48% from 2022 to 2025, while food sector reporting saw a 12% decrease.

The shifting political climate also plays a role. In the United States, proposed rollbacks of climate risk disclosure rules and restrictions on terminology relating to climate and diversity issues have influenced corporate sustainability practices. European Union sustainability legislation has also been scaled back. Anderson remarked that certain sustainability-related terms have become "forbidden" in the U.S. corporate context, but noted that companies may continue pursuing renewable energy initiatives for business, rather than solely environmental, reasons.

Some sustainability leaders frame these changes as a strategic evolution rather than a setback. Anderson observed that many companies have revisited and adjusted their sustainability targets to be more realistic and actionable. The trend toward appointing CSOs at levels below the C-suite, or embedding sustainability responsibilities across leadership teams, reflects an effort to integrate sustainable practices more thoroughly into corporate culture. Malu Pinto, CSO at Brazilian pulp and paper company Suzano, described her role as driving sustainability as a cultural change, enabling peers to independently advance environmental goals.

Investor and board engagement increasingly centers on sustainability as a matter of risk mitigation. The term “transition risk” appears nearly 40% more often in FTSE 100 reports since 2022, underscoring a focus on managing the financial and operational risks of transitioning to a low-carbon economy. According to Anderson, reframing sustainability as a strategic risk issue makes it easier for teams to justify their value at the board level in the absence of a dedicated CSO.

As companies adapt to evolving political and economic landscapes, the sustainability function appears to be moving away from high-profile, centralized leadership roles toward more integrated and business-focused approaches. Whether this results in deeper, more effective corporate sustainability efforts remains a subject of ongoing observation.