PepsiCo, Microsoft & Google: How CSOs Reshape Supply Chains
Global supply chains are under growing pressure to decarbonise and adapt to the Paris Agreement, which sets the aim of keeping global warming to 1.5°C.
To meet that goal, companies commit to net zero emissions by 2050, relying on a Chief Sustainability Officer (CSO) to lead those changes, particularly in areas tied to sourcing, operations and logistics.
The Forbes Research 2025 State of Sustainability Survey finds that 79% of companies now employ a CSO. The survey covers more than 1,100 executives worldwide with annual revenue of at least US$500m, highlighting how central sustainability leadership is becoming within supply chains.
Growing authority of CSOs
The survey reports that CSOs are more integrated into core decision-making than before, showing that 43% of executives now collaborate with their CSO. The research also shows that 31% of CSOs now lead corporate sustainability strategy, confirming their role as architects of supply chain transformation.
Forbes says that financial backing is rising too, with 93% of CSOs expecting budget growth in the next 12 months. More than three quarters report that sustainability governance is now treated as a core pillar of long-term corporate strategy.
This includes not only compliance with environmental regulations but also aligning production and distribution networks with broader sustainability goals.
Confidence is high among CSOs themselves, as 83% believe they are more committed to advancing sustainability than their peers in other roles. Around 55% say their organisation can meet both sustainability and financial objectives, showing how environmental goals increasingly run in parallel with business performance.
Supply chain resilience
EY, the global professional services firm, connects supply chain resilience directly with sustainability. Its Global Risk Survey finds that 66% of boards now say resilience only exists if enterprises are environmentally sustainable.
In practice this means sourcing, transport, warehousing and manufacturing are all reshaped to meet climate goals.
EY explains that disparities between sustainability reporting and financial projections make CSO oversight essential.
“More and more firms are systematically setting aside time in board meetings to discuss ESG matters and are also seeking external insights by collaborating with sustainability partners,” says Renaud Breyer, Partner and Sustainability Leader, EY Luxembourg.
CSOs are not just setting high-level targets but are embedding sustainability into procurement, supplier management and production planning.
This includes introducing circular approaches to materials, cutting Scope 1 and Scope 2 emissions within facilities and logistics, and rethinking energy use across distribution chains.
CSOs reshaping operations
Jim Andrew - Pepsico
PepsiCo provides a clear example of how a CSO influences global supply chains. Jim Andrew, Executive Vice President and CSO, leads the company’s transformation programme called pep+.
Under his guidance, Scope 1 and Scope 2 emissions have been reduced by 33% since 2015 and he oversees projects such as the ‘Sustainable Operations from the Start’ initiative.
At Sustainability LIVE Climate Week NYC 2024, he said: “There’s a perception that sustainability always costs more, but we’ve found that it doesn’t have to.”
Kate Brandt - Google
At Google, Kate Brandt integrates sustainability goals into both product design and infrastructure.
She has driven the shift to 100% renewable energy use across global operations for seven years, keeps the company carbon neutral and introduced circular packaging.
By 2030, her strategy includes helping cities, partners and individuals cut one gigaton of carbon equivalent emissions every year.
She says: “As the climate crisis continues to demand urgent action, women are stepping into leadership roles to drive sustainability across industries. From tech giants to luxury brands, their influence spans sectors, proving that bold leadership is key to creating lasting environmental and social change.”
Melanie Nakagawa - Microsoft
Microsoft sets even more ambitious targets under Melanie Nakagawa, who aims for the company to be carbon negative by 2030 and to remove all historical emissions by 2050.
She manages Microsoft’s US$1bn Climate Fund, which supports the development of carbon reduction technologies.
Melanie adopts a data-led approach, applying Microsoft’s digital capabilities to measure and improve supply chain performance.
She explains: “Our ambitious 2030 targets to become carbon negative, water positive, zero waste and to protect biodiversity require continued innovation across every aspect of our operations, and we’re committed to sharing what we learn along the way.”
CSOs now play a critical role in redesigning supply chains to align with both climate science and business strategy.
From food and beverage through to technology, the CSO is no longer a peripheral figure but a central operator in how goods are sourced, moved and delivered in a low-carbon economy.
