A new report by Kearney titled “Staying the Course: Chief Financial Officers and the Green Transition” highlights a significant shift in the investment strategies of CFOs, underscoring a growing preference for sustainability.
The survey, which includes insights from 500 CFOs across the UK, US, UAE, and India, demonstrates a robust commitment to increasing sustainability investments despite prevailing economic uncertainties, claims ESG News.
Notably, 69% of CFOs anticipate higher returns from sustainability initiatives compared to traditional investments, with a striking 92% planning to enhance their net sustainability investments in 2024.
The report, a collaborative effort between Kearney and the environmental advocacy group We Don’t Have Time, explores the financial perspectives on sustainability investments among CFOs. It reveals that while 93% of CFOs acknowledge the business case for sustainable investments, 61% still weigh these options from a cost perspective rather than their long-term value. However, a growing trend among these financial leaders is the evaluation of the costs associated with inaction, particularly in the context of climate risks and potential regulatory penalties, with 65% actively measuring these costs.
Immediate investment areas identified by CFOs include the use of sustainable materials, fostering sustainable innovation and partnerships, and enhancing energy management and waste reduction. These areas not only promise short-term financial and environmental returns but also align with broader ESG goals. The report also finds that 71% of CFOs are incorporating sustainability considerations into employee retirement fund selections, and 94% are integrating these principles into their broader investment strategies.
Beth Bovis, Partner at Kearney and Global Sustainability Lead, emphasized the critical role of CFOs in the sustainability debate. She remarked, “The perspective of CFOs is often overlooked in the corporate sustainability debate, yet their role is crucial.” Meanwhile, Ingmar Rentzhog, Founder & CEO of We Don’t Have Time, noted the increasing responsibility of finance chiefs in absorbing their organizations’ sustainability efforts.
As the UK government prepares to unveil new Sustainability Disclosure Standards this year, CFOs are expected to take a central role in shaping corporate ESG strategies. Beth Bovis highlighted, “ESG reporting is increasingly falling under the CFO’s responsibilities. Beyond compliance, CFOs can drive investments that cut emissions and boost commercial value.”
This report points to a clear consensus among financial leaders: sustainability is not just a regulatory mandate but a critical component of financial strategy, offering significant opportunities for growth and value creation.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
