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Brain Circuits

AI and the CSO: 7 ways to drive competitive advantage

Published July 21, 2026 in Brain Circuits • 3 min read

The role of the chief sustainability officer (CSO) has moved from the margins to the center of corporate strategy. Here are seven ways to harness AI to embed sustainability and drive growth.

Corporate sustainability: from add-on to business-critical strategy 

Once the role of CSO centered around reporting on emissions, energy, and water use. Now the CSO 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 determines resilience and growth.

7 ways AI can drive sustainable competitive advantage

1. Integrate scattered data, making sense of vast amounts of information once trapped in spreadsheets or siloed systems.

2. Provide real-time visibility into carbon and resource flows.

3. Surface business cases that move leaders from pledges to investments.

4. Trace emissions through global supply chains.

5. Power ideas such as digital product passports that show a product’s impact across its life cycle.

6. 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.

7. Shorten 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.

Key learning

For industries under pressure to decarbonize, time saved equals emissions avoided. AI allows CSOs to move from static disclosure to dynamic insight, giving them the ability to make sustainability a driver of competitive advantage.

Authors

Julia Binder

Professor of Business Transformation and Director of the Center for Sustainable and Inclusive Business

Julia Katharina Binder, Professor of Business Transformation, is a renowned thought leader recognized on the 2022 Thinkers50 Radar list for her work at the intersection of sustainability and innovation. As Director of IMD’s Center for Sustainable and Inclusive Business, Binder is dedicated to leveraging IMD’s diverse expertise on sustainability topics to guide business leaders in discovering innovative solutions to contemporary challenges. At IMD, Binder serves as Program Director for Creating Value in the Circular Economy and teaches in key open programs including  Transition to Business Leadership (TBL), and Leading Sustainable Business Transformation (LSBT). She is involved in the school’s EMBA and MBA programs, and contributes to IMD’s custom programs, crafting transformative learning journeys for clients globally.

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