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AI and the CSO: Harnessing technology to drive sustainable competitive advantage
CSOs should harness artificial intelligence to embed sustainability at the center of strategy and growth. We explore how the most successful companies are already doing this.
The role of the chief sustainability officer (CSO) has moved from the margins to the center of corporate strategy. Where once the role centered around reporting on emissions, energy, and water use, the CSO now shapes how products are designed, capital is allocated, and organizations respond to regulators, investors, and employees who demand proof of purpose. CSOs bring the discipline of measurement and the ability to connect across silos, skills that have become strategic as sustainability defines resilience and growth.
The most significant enabler of this transition is artificial intelligence. AI can integrate scattered data, illuminate complex supply chains, and accelerate the scaling of clean technologies. However, it also increases energy demand, and can deepen inequality – or create the illusion of progress while fundamentals remain unchanged. The task for CSOs today, therefore, is to deploy AI in a way that amplifies sustainability rather than undermining it. As such, CSOs are translators, connectors, and system leaders – a role that has never been more critical.
For CSOs, the imperative is to fold AI directly into the sustainability agenda, to apply the same discipline to algorithms as to energy or supply chains, and to ensure that its adoption strengthens rather than weakens environmental and social resilience.
Corporate sustainability: from add-on to business-critical strategyÂ
For much of the last decade, corporate sustainability matured in parallel to the core business rather than within it. CSO teams built baselines, set science-based targets, tracked energy and water, worked with procurement on sourcing, and produced reliable disclosures for investors and regulators. It was serious work, often carried out by small teams with limited influence over product, data, or go-to-market decisions. Success was measured in emissions intensity, renewable energy share, waste diversion, and audit quality.
That context has shifted. Regulation is tightening, consumers are more vocal, investors are pricing climate and social risk, and talent expects purpose with proof. Sustainability has moved from compliance to strategy, and the CSO has moved closer to product, technology, and finance. The discipline of measurement and the supplier networks built in earlier years now provide the foundation for growth and resilience.
AI can integrate scattered data, provide real-time visibility into carbon and resource flows, and surface business cases that move leaders from pledges to investments. It can make sense of vast amounts of information once trapped in spreadsheets or siloed systems, allowing CSOs to move from static disclosure to dynamic insight. Models can trace emissions through global supply chains and power ideas such as digital product passports that show a product’s impact across its life cycle. Organizations also use AI to optimize and accelerate. Smart algorithms manage grids and buildings hour by hour, predictive tools guide maintenance to conserve resources, and logistics platforms reduce waste in circular supply chains. Finally, AI shortens the path from pilot to scale. Digital twins and scenario engines let companies test interventions virtually before committing capital, ensuring that the best solutions reach scale without years of trial and error. For industries under pressure to decarbonize, the time saved equals emissions avoided. In this sense, AI offers a real chance to make sustainability a driver of competitive advantage.
Yet these benefits arrive with their own set of sustainability challenges. Training and running advanced models consume vast amounts of electricity and water, often in regions already under stress. Automation reshapes work, eliminates some roles, and widens divides between those with access to advanced tools and those without. Poorly governed systems can embed bias, erode trust, and in some cases deepen the disconnect between humans and nature by replacing lived engagement with simulated insights. Perhaps most worrying, AI can pull attention and investment away from proven decarbonization measures, inflate the footprint of digital estates, and undo years of hard-won progress. The risk is not illusion but derailment. For CSOs, the imperative is to fold AI directly into the sustainability agenda, to apply the same discipline to algorithms as to energy or supply chains, and to ensure that its adoption strengthens rather than weakens environmental and social resilience.Â
The future CSO: evolving responsibilities
The CSO has always been a translator and a connector, a leader who could bridge the language of regulators and investors with the daily realities of operations, procurement, and communications. They were also systems thinkers before the term became fashionable, able to see how environmental and social issues cut across silos and time horizons. In the age of AI, these qualities take on new relevance and meaning.
Translation now means bringing together technologists and sustainability experts who rarely share the same table. It means making AI’s promise and peril legible to boards and employees alike. Connection now stretches across data ecosystems as well as business functions, linking fragmented supply chains with real-time visibility through product passports and sensor networks. Systems leadership now includes digital systems, with the CSO expected to orchestrate how algorithms, operations, and ethics interact.
This reframing explains why the CSO is no longer peripheral. AI can be a growth engine or a governance crisis, sometimes simultaneously. The CSO provides the frame that keeps those forces in balance. They highlight risks such as energy-hungry models, biased outputs, and job disruption. But they also need to spotlight the opportunities: optimized grids and buildings, accelerated scale-up of clean technologies, and transparent supply chains that build consumer trust. The CSO ensures that both sides of the ledger are visible and actionable.
These technologies are powerful, but they come with energy and water demands, governance requirements, and ethical considerations.
Deploying the best modern tools and technologies
The sustainability toolkit was traditionally dominated by spreadsheets, audits, and lifecycle assessments. Those instruments remain essential, but the AI era expands the playbook dramatically and places the CSO at the center of decisions about how these tools are deployed, connected, and governed. Think about how digital twins allow companies to test interventions virtually and move capital toward what delivers the best outcomes. Consider how product passports powered by AI bring visibility to global and fragmented supply chains, or how predictive maintenance, smart logistics, and real-time energy optimization cut waste and emissions. It is easy to overlook how large language models automate the drudgery of reporting and compliance, freeing capacity for strategy and engagement.
These technologies are powerful, but they come with energy and water demands, governance requirements, and ethical considerations. The CSO’s task is to put them in context and decide when optimization creates real progress and when it is simply shifting burdens elsewhere.
Enabling skills and mindset shifts
The future CSO needs both a new way of thinking and sharper hard skills. The cognitive shift is toward systems thinking. Sustainability leaders have always been asked to see connections across silos, but AI multiplies the number of moving parts. Decisions about algorithms and data now influence energy use, supply chain transparency, social equity, and governance. A systems mindset enables the CSO to hold these threads together, to anticipate second-order effects, and to design strategies that balance efficiency with equity.
The second shift is about technical fluency. Using AI tools effectively requires understanding how they work, what data they consume, and where they fall short. The CSO does not need to become a data scientist but must know enough to interrogate assumptions, ask the right questions, and interpret results responsibly. Without that fluency, it is impossible to connect AI investments to sustainability outcomes or to call out when technology is delivering optics rather than impact.
Examples of success
The best way to understand the CSO’s evolving role is to look at where AI and sustainability already meet in practice. These stories show how leaders are translating ambition into impact, turning abstract possibilities into measurable results, and proving that AI can be both a sustainability accelerator and a governance test.
At CSO Nadine Sterley highlights how AI can serve as a true accelerator of sustainable solutions. She frames digital transformation not only as a lever for reducing emissions and improving resource efficiency but as a way to deliver tangible customer value. By linking intelligent technologies directly to new business models and measurable impact, Sterley demonstrates how a CSO can ensure AI drives both competitiveness and sustainability. Beyond optimizing existing solutions, she points to how digital transformation can unlock disruptive approaches such as pay-per-use models, harnessing technology to maximize progress on sustainability goals.
In retail, Decathlon is showing how AI can make circularity scale. Under the leadership of former CSO Anna Turell, the company embraced a data-driven approach to redefine its sustainability journey. Algorithms forecast returns, guide products toward repair or resale, and plan reverse logistics with fewer empty miles. Customers gain convenience, inventory earns a second life, and waste plummets. What once looked like a niche program becomes core to competitiveness.
System-level examples extend the picture. A  suggests AI could help cut global emissions by up to six gigatons by 2035 by accelerating low-carbon technologies. Google  UPS uses AI to map delivery routes, saving fuel and emissions across its global fleet. Unilever applies AI to trace palm oil sourcing, making transparency a daily capability rather than a marketing claim. At city scale, Saudi Arabia’s NEOM demonstrates what becomes possible when AI and sustainability are designed together from the start. Even if execution lags ambition, it signals the scale of opportunity.
Over-dependence on AI can reduce complex sustainability trade-offs to the outputs of untransparent models, sidelining human judgment.
Addressing risks, pitfalls, and ethical considerations
The upside of AI is immense, but so are the dangers if CSOs fail to evolve. Automation can hollow out workforces, shift skills gaps faster than companies can reskill, and widen digital divides between firms, communities, and even countries. Poorly governed systems can hardwire bias into supply chains and decision-making, eroding trust with regulators, investors, and employees. These are not side effects to be delegated to IT. They are sustainability challenges, threatening equity, resilience, and legitimacy.
The risks are not only operational but also strategic. Over-dependence on AI can reduce complex sustainability trade-offs to the outputs of untransparent models, sidelining human judgment. Role confusion can emerge as technologists, financiers, and consultants claim ownership of “AI sustainability,” pushing CSOs to the margins. Without strong CSO leadership, AI risks becoming innovation theatre. Companies may launch pilots that look impressive but do little to cut emissions or reduce resource use, leaving the fundamentals untouched while attention drifts from real progress. If CSOs do not step forward to frame and lead, the agenda they fought to move to the center of business risks being defined by others, often with very different priorities.
Three steps to take today
CSOs need to reinvent themselves and evolve, acting decisively to build the skills, frameworks, and strategies that will define their relevance in the next decade. Three priorities stand out.
1 – Build fluency
CSOs must upskill fast. To continue as translators and connectors, they need to speak the language of AI well enough to interrogate assumptions, understand risks, and guide teams. Without that fluency, their influence in the boardroom will fade.
2 – Assess risk and opportunity together.
Every AI project should be tested not only for financial return but also for its environmental and social impact. CSOs must lead structured assessments that expose both sides of the ledger, highlighting where AI accelerates progress and where it threatens to derail it.
3 – Scale with purpose.
Pilots are easy; transformation is not. CSOs should identify the few AI applications that deliver material sustainability outcomes and push them beyond experiments into core operations. Scaling responsibly is how they prove that AI is a lever for long-term value.
AI will not decide the future of sustainability – leaders will.
A pivotal moment: lead with AI or become irrelevant
AI will not decide the future of sustainability – leaders will. For CSOs, this is a decisive moment where their relevance is being redefined. They can no longer be seen only as guardians of reports and compliance; they need to become architects of how technology and sustainability come together. Their task is to give AI a frame, to ask not only what it can do but what it should (and should not!) do, and to ensure its use accelerates climate progress while strengthening social resilience.
The qualities that once defined the CSO are now more vital than ever. With fluency in the language of AI, an ability to weigh risks and opportunities, and the authority to scale what works, CSOs can steer their organizations through the turbulence of technological change. Those who rise to the challenge will safeguard trust and prove that sustainability belongs at the heart of strategy and growth. Those who do not risk watching the agenda they diligently built slip back to the margins. The storm has already begun – and the CSO is at the center of it.
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