The "fractional" approach to hiring executives is a proven model for companies (especially high growth companies) to get high quality expertise on a good budget. Tech firms & start-ups often hire fractional executives to get experienced guidance and fill skill gaps affordably in growth mode,while VC-backed companies hire fractional CEOs, CFOs, and COOs to support portfolio companies and improve their value.
Today, we hear a lot from business advisors & consulting firms promoting the benefits of Fractional Chief Sustainability Officer (CSO) services as a more affordable solution than hiring a full-time CSO. Using fractional resources for sustainability management, however, is a less understood strategy. While cost-effective expertise is undeniably appealing, and might even advance sustainability, this "band-aid" approach is often unsuited for the complex set of challenges presented by ESG strategic goals.
In this article, we demonstrate how and why companies should evaluate other viable options for developing and scaling their sustainability programs. Learn why the better solution often involves a partnership with experts who can integrate with your team across multiple levels of the organization.
The flexibility of an integrated consulting team addresses cross-functional business needs by working across multiple departments and levels within the organization.
What is a Fractional CSO?
A fractional CSO is a part-time sustainability manager who contracts with organizations to provide temporary strategic oversight on environmental, social, and governance (ESG) projects, sometimes working with multiple companies simultaneously.
Fractional CSOs typically help define sustainability goals and develop comprehensive sustainability strategies, offering the expertise of a full-time sustainability executive without the obligation of a full-time salary and benefits.
What Are the Benefits of Hiring a Fractional CSO?
Compared to the lengthy process of recruiting & onboarding a full-time executive, this resourcing strategy approach can offer:
- Cost-effectiveness
- Flexibility
- High implementation speed
- Short-term commitment
What Are the Alternatives to Hiring a Fractional CSO?
While a fractional CSO might suit some small companies and start-ups, business leaders need to carefully consider the level of integration typically required for genuine sustainability impact and how a fractional CSO might struggle to satisfy that requirement.
Here are other staffing approaches to consider:
- When should you hire a full-time executive with sustainability management experience?
Do enough of your company's biggest sustainability priorities fall within a specific company domain e.g. R&D vs. Sales & Marketing?
If you are considering hiring for a fractional CSO role, but it's not quite the right fit, then hiring an executive for a specific function who also has sustainability management experience might be the next best move. For example, if most of your company's materially significant sustainability issues fall within the domain of product development or R&D, hiring a head of R&D who has experience directing product life cycle assessment (LCA) might work. If your highest priority issues pertain to the customer experience (responsible marketing claims, product end-of-life) then consider an EVP of Customer Success who has experience managing sustainability-focused campaigns, working closely with supply chain, manufacturing and legal. - When should you assign sustainability responsibilities to an existing executive?
Does an existing executive have bandwidth to lead ESG strategy?
This solution can be cost-efficient & impactful if an executive is able to lead and integrate sustainability into another function (i.e. Finance, Operations, Product). Conducting a materiality assessment pinpoints the most important issues for the business and, by extension, how those issues must be managed. Lower priority issues may not require active management thus it's a good idea to focus on the biggest risks, opportunities when determining where ESG and sustainability topics will be managed within your org structure. - When should a company partner with a team of sustainability consultants?
How many levels of the organization require sustainability expertise?
A team of experts can supplement advisory provided by an executive, fulfilling the organization's need to implement sustainability efforts across analyst and middle-management levels, but without adding a full-time team's worth of headcount expenses. When supporting companies that are facing a strong sustainability performance improvement mandate from customers or investors, the team at Third Partners typically manages multiple workstreams simultaneously. Our work often crosses over between compliance, sales and marketing, product development, and operations.
How to Find the Right Sustainability Consultant
Sustainability consultancies vary broadly in terms of expertise, philosophy, capabilities, and cost. Carefully evaluate prospective partners based on your organizational needs and priorities to ensure compatibility.
Emphasize these topics during the vetting process:
- Level of experience working within your industry
- Case studies or client testimonials that demonstrate ROI
- Professional qualifications, certifications & affiliations
- Stakeholder engagement strategy
- Data collection & reporting methodology
- Project management approach & communication style
- Fees, billing structure & scope of work
Benefits of Partnering with Sustainability Consultants
Integrating a well-balanced team of sustainability consultants across various levels of the organization will often have a greater impact on ESG benchmarks.
Main advantages of working with a team of ESG experts include:
- Breadth & Depth of Expertise
A fractional CSO, however experienced, is still a single individual with inherent limitations in their knowledge base. A diverse team of consultants contributes a broader range of expertise, covering all aspects of sustainability from strategy and reporting to stakeholder engagement. Collective expertise is better equipped to guide every aspect of a sustainability journey, offering comprehensive support related to supply chain mapping, product innovation, carbon accounting, and beyond. - Integrated Hands-On Solutions
Consultants roll up their sleeves and integrate directly with your existing teams, working cross-functionally to drive bottom-up change and embed sustainability into the DNA of your organization. In comparison, a fractional CSO typically acts as an advisor, providing guidance and recommendations from a distance. Sustainability is not a siloed function, and our ability to integrate deeply with your teams fosters buy-in across your organization, transforming sustainability from a top-down initiative to a company-wide commitment. We work with marketing departments to craft authentic sustainability messaging, collaborate with operations to optimize resource efficiency, and partner with finance to unlock green capital investments with positive ROI. - Scalability & Flexibility
Business needs constantly evolve and your sustainability strategy needs to keep pace. At any given moment, and with unparalleled agility, a consulting team can scale resources up or down to match your exact needs. Whether you need a surge of support for a major product launch or ongoing strategic advisory during a period of steady growth, our team will adapt accordingly without the fixed cost of a full-time or fractional CSO. - Accelerated Impact
By working shoulder-to-shoulder with internal staff, a consulting team can accelerate the implementation of sustainability initiatives, driving faster results and empowering your employees to become sustainability champions. Providing both a detailed roadmap & execution plan, the hands-on approach of a consultant ensures tangible results for goals, including reduced emissions, resource efficiency, enhanced brand reputation, and increased investor confidence.
How Third Partners Can Help
Choosing the right approach to sustainability leadership is crucial for businesses looking to thrive in the 21st century. Our team of expert sustainability consultants offers comprehensive and impactful action plans based on collaboration with C-suite executives, marketing directors, operations leaders, project managers, and analysts.
Most importantly, Third Partners sustainability consultants can "plug in" anywhere in a company's organizational structure. Many of our engagements put us in an advisory role to the company's CEO or "Chief of Staff." In other engagements, we directly support a Marketing or Operations executive, helping to build internal capacity and fill missing technical skill gaps at the same time.
Contact us today if you would like to learn more about our approach to develop and implement competitive strategies that strengthen businesses and benefit the planet.
