Overwhelming majority of CFOs expect to increase investments in sustainability this year

Ninety-two percent of chief financial officers expect their companies to significantly increase net investment in sustainability this year, according to a report from consulting firm Kearney and media platform We Don’t Have Time. The report in December 2024 surveyed 500 CFOs at private companies in the UK, US, UAE, and Saudi Arabia.

The report – “Staying the Course: Chief Financial Officers and the Green Transition” – also found that 93% of CFOs recognize the business case for sustainability investments, and 65% are measuring the cost of inaction. This signals an awareness of the long-term risks of climate change – both regulatory and existential – as well as a recognition of opportunities in the green transition.

Surveyed CFOs believe sustainability initiatives are a good investment, with 69% expecting higher returns on sustainability initiatives compared to traditional investments.

CFOs are focusing on sustainability projects with clear, short-term benefits in reducing emissions. The top-ranked choices are increased use of sustainable materials, sustainable innovation and partnerships, and enhanced energy management and waste reduction.

CFOs are also integrating ESG into wealth management, with 71% considering sustainability when selecting employee retirement funds.

"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," said Beth Bovis, partner at Kearney and global sustainability lead.

The UK government is set to release its Sustainability Disclosure Standards, forcing CFOs to assess and disclose environmental impact in their financial reporting.

CFOs in the US, UAE, and Saudi Arabia likely have less to worry about in the area of near-term sustainability reporting compliance.