• 69% of CFOs anticipate higher returns from sustainability initiatives compared to traditional investments.
• 92% of CFOs plan to significantly increase sustainability investments this year, despite financial pressures.
• 94% of CFOs now integrate sustainability into broader investment decisions, highlighting a shift in corporate finance priorities.

Sustainability Gains Momentum in Corporate Finance

A new report from Kearney, Staying the Course: Chief Financial Officers and the Green Transition, reveals that CFOs are increasingly prioritizing sustainability investments, with 69% expecting higher returns than from traditional investments.

Despite economic uncertainty, 92% of CFOs plan to increase net sustainability investments in 2024—a strong indication that financial leaders see long-term profitability in green initiatives.

Balancing Risk and Reward

The survey of 500 CFOs across the UK, US, UAE, and India, conducted by Kearney and We Don’t Have Time, highlights key financial perspectives on sustainability:

• 93% of CFOs recognize the business case for sustainable investments, though 61% still focus on cost rather than long-term value.
• 65% are measuring the cost of inaction, signaling a growing awareness of climate risks and regulatory penalties.

“The perspective of CFOs is often overlooked in the corporate sustainability debate, yet their role is crucial.” — Beth Bovis, Partner at Kearney and Global Sustainability Lead

Immediate Actions: Where CFOs Are Investing

CFOs are prioritizing sustainability investments that provide clear, short-term financial and environmental benefits. The top three focus areas:

• Increasing the use of sustainable materials
• Driving sustainable innovation and partnerships
• Enhancing energy management and waste reduction

Workforce & Investment Strategies Align with ESG Goals

The corporate shift towards sustainability is not just about compliance—it’s about value creation. The report finds:

• 71% of CFOs factor sustainability into employee retirement fund selections, reflecting growing ESG awareness.
• 94% integrate sustainability into broader investment strategies, appealing to both investors and employees.

“Finance chiefs are increasingly absorbing more of their organization’s sustainability efforts, and our research shows they are prepared for this responsibility.“ — Ingmar Rentzhog, Founder & CEO, We Don’t Have Time

The CFO’s Expanding Role in ESG

As sustainability disclosure standards evolve, CFOs will play a pivotal role in shaping corporate ESG strategies. With the UK government set to release Sustainability Disclosure Standards this year, companies must rethink how they measure and communicate climate impact.

“ESG reporting is increasingly falling under the CFO’s responsibilities. Beyond compliance, CFOs can drive investments that cut emissions and boost commercial value.” — Beth Bovis

The findings indicate a growing consensus: sustainability is no longer just a regulatory requirement—it’s a financial opportunity.

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