32% of Respondents Identify CFOs as Pivotal Leaders in Sustainability Reporting Across Asia Pacific: New Deloitte Survey
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- CFOs are leading sustainability reporting: 32% of companies have CFOs as accountable executives for sustainability, with 16% sharing this role with CSOs.
- Resource gaps remain a challenge: 60% of companies cannot forecast the resources required to meet emerging reporting standards.
- Opportunities for value creation: 35% of companies see increased revenue and innovation from sustainability initiatives.
Deloitte’s Latest Series Highlights CFO Leadership in Sustainability
A new report series by Deloitte, titled “Asia Pacific Mandatory Sustainability Reporting,” positions Chief Financial Officers (CFOs) as pivotal leaders in navigating the evolving landscape of sustainability reporting across the Asia-Pacific region.
CFOs Take the Lead
With sustainability performance gaining visibility among boards, investors, and regulators, CFOs have become instrumental in ensuring assurance-ready sustainability reporting. “Mandatory sustainability reporting requirements are not only new and complex but also diverse and varied across different geographies, especially in Southeast Asia,” said Josette Soh, Sustainability & Climate Assurance Partner, Deloitte Singapore.
Despite this, CFOs face significant challenges, including compliance complexities and the need to address key resource and capability gaps. 60% of organizations cannot forecast the number of people required to meet emerging sustainability workloads, and those that do estimate their needs will double.
Building Blocks for Reporting Success
Deloitte’s second paper, “The CFO’s building blocks for success,” delves into the critical areas of focus—people, processes, and data. Over 45% of companies have identified gaps impacting their sustainability reporting capabilities. “Deloitte’s SustainNext™ solution has been instrumental in helping clients assess each requirement and provide a view on overall performance against standards,” noted Andrew Kerris, Partner, SustainNext™, Deloitte Asia Pacific.
Instead of investing in new systems, many companies are opting to enhance existing ones. Effective data management, consolidation, and automation are key to efficiently managing sustainability data and meeting assurance standards.
Driving Business Value Beyond Compliance
The third paper, “How CFOs drive impact and realise value,” emphasizes the opportunity for CFOs to leverage sustainability data for business insights. “As boards and leadership teams sharpen their focus on sustainability, CFOs can create positive impact by applying a value creation lens,” said Ho Kok Yong, CFO Program Leader, Deloitte Asia Pacific.
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35% of organizations are already experiencing increased revenue from sustainability initiatives. Additionally, those with a strong focus on ‘people and planet’ report higher employee engagement, showcasing sustainability’s potential to enhance not just compliance but also overall business resilience.
As sustainability reporting requirements in the Asia-Pacific region evolve, the role of the CFO is set to grow in importance. By developing a robust framework and leveraging existing resources, CFOs can drive both compliance and long-term business value.
For more insights, view the full report series.