The folks who control the corporate purse strings are not about to give up on sustainability initiatives, with nearly 70% of top CFOs worldwide expecting higher returns from their sustainable investments that from their traditional counterparts, a new survey finds.
In addition, 92% of 500 CFOs surveyed said they expect their organizations will significantly increase net investment in sustainability in 2025. The optimism over sustainability by the financial professionals comes despite the geopolitical uncertainty and financial pressures that many of the world’s corporations are facing, pollsters said.
The survey was conducted by Kearney, a leading global consultancy, and We Don’t Have Time, a climate-action media platform. The surveys included top CFOs across the United Kingdom, United States, United Arab Emirates and India, to understand how CFOs are embedding sustainability within their strategies.
“The perspective of CFOs is often overlooked in the corporate sustainability debate, yet their role is crucial.,” said Beth Bovis, partner at Kearney and global sustainability lead. “As those in control of financial levers, CFOs are uniquely positioned to have a long-term impact on business strategy. And our study highlights that they’re already taking steps in this direction.”
“ESG reporting is increasingly falling under the CFO’s responsibilities. But beyond simply ensuring regulatory compliance, CFOs can lead the charge in driving investments that not only reduce emissions but also deliver tangible commercial value for the business,” she said.
According to the research, 93% of CFOs recognize the business case for sustainability investments. However, the survey reveals varying motivations behind these investments: 61% still view these sustainable investments through a cost-focused lens, rather than considering the long-term value they may generate.
Sixty-five percent of CFOs are now measuring the cost of inaction, signaling an increasing awareness of the long-term risks posted by climate change and regulatory penalties, as well as opportunities related to green transition, the results showed.
The research highlights that CFOs are focusing on sustainability investments that offer clear, short-term benefits in reducing emissions. The top three investment areas that ranked highest include:
- Increasing the use of sustainable materials
- Driving sustainable innovation and partnerships
- Enhancing energy management and waste reduction
CFOs are also responding to increasing pressure from employees to align their financial strategies with sustainable practices, with more than 71% of CFOs considering sustainability when selecting employee retirement funds.
As ESG awareness rises, the findings suggest that CFOs are also recognizing the value of sustainable investments that both benefit the planet and resonate with values-driven investors and employees: An overwhelming majority (94%) of CFOs now incorporate sustainability considerations into broader investment decisions.
“Finance chiefs are increasingly absorbing more of their organization’s sustainability efforts, and our research shows that they are more than prepared for this responsibility,” said Ingmar Rentzhog, founder and CEO at We Don’t Have Time.
“With the UK government set to release its Sustainability Disclosure Standards this year, organizations will be forced to rethink how they measure and communicate their climate initiatives. CFOs will be crucial in navigating these changes, as they must assess and disclose their environmental impact, adding a new layer to financial reporting.”
Read Kearney’s full report, “Staying the Course: Chief Financial Officers and the Green Transition.”
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