A new survey positions CFOs as key organisational drivers for investment in sustainability. According to Beth Bovis, Global Sustainability Lead at Kearney, and one of the report’s co-authors: “The perspective of CFOs is often overlooked in the corporate sustainability debate, yet their role is crucial. 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.”
Staying the course: chief financial officers and the green transition, which surveyed more than 500 CFOs across several geographies, including the United States, United Kingdom, United Arab Emirates and India, reports 92 per cent of CFOs plan to invest more in sustainability, with over half pledging significant increases to their investments.
These figures point to recognition by the C-suite that sustainability is a value driver key to business success and no longer solely a compliance issue. In fact, increasing numbers of global organisations are committed to reaching net-zero targets and many now face the precarious task of executing their transition plans.
Managing the impacts and dependencies of an organisation’s business activities on climate and nature requires informed decision-making to balance the books. If a transition plan is not designed to be affordable and actionable the consequences can be costly.
Companies that prepare to mitigate risks emerging from the sustainability landscape and identify commercial opportunities in the transition to profitable sustainability will gain competitive advantage. But what do organisations need to consider when executing a credible and actionable transition plan?
The latest Risilience report, Financing net zero: integrating financial and transition planning, provides analysis, data-led insights and practical steps to support enterprise organisations to prosper on their decarbonisation journey.
A credible plan is built on a solid greenhouse-gas-emissions (GHG) footprint and robust information about how the business is expected to grow across different functions and regions of the world. To succeed, net-zero plans must be comprehensive in scope, financially quantified and carefully consider the relative merits of decarbonising different functions across the business; in short, which initiatives to action and when.
Meeting net-zero targets may require widespread changes to the business model of an organisation, and radical action in collaboration with suppliers and customers. While the task must not be underestimated and requires serious finance, rewards will follow.
Organisations can really reap the benefits of connecting their financial and transition plans as a unified strategy that enables sustainability and finance teams to share the same language in their pursuit of profitable sustainability.
• Read and listen to our latest report – Financing net zero: integrating financial and transition planning.