CFOs Embrace Sustainability: The Business Case Gains Momentum

Sustainability involves the whole organisation—it touches every function, from procurement and operations to marketing and finance. However, to truly move the needle, sustainability needs allies at the very top of the company. Even the best sustainability initiatives can struggle to gain traction without leadership support. In fact, a lack of executive buy-in is often one of the biggest barriers to progress. (Here's where a shout-out is due to all the sustainability managers who keep pushing forward—often in uphill conditions—with persistence, creativity, and grit.)

The good news? Things are shifting.

In recent years, sustainability has evolved from a peripheral concern—nice to have, but nonessential—to a central pillar of corporate strategy. 

Chief Financial Officers (CFOs), long regarded as the guardians of fiscal discipline, increasingly recognise sustainability's strategic value. Sustainability is no longer just the domain of CSR teams or external affairs; it is now very much a CFO topic. A recent Kearney study confirms this change in mindset. Out of more than 500 CFOs surveyed, a remarkable 93% say they see a clear business case for investing in sustainability. Even more promising, 92% plan to increase their sustainability investments in 2025, and more than half of those say the increase will be significant.

So what's driving this change?

For many CFOs, it's about financial pragmatism. The survey shows that sustainability investments are increasingly tied to areas with straightforward, near-term returns—initiatives that reduce costs, improve operational efficiency, or lower exposure to regulatory and market risks. 

Among the top priorities:

✅ Increasing the use of sustainable materials

✅ Managing energy more effectively

✅ Driving sustainable innovation and partnerships

✅ Reducing waste

✅ Improving ESG ratings and regulatory compliance

These aren't just feel-good measures. They're practical, financially grounded actions that align with broader business goals—especially in a time of uncertainty, supply chain pressures, and shifting investor expectations.

However, the Kearney report also highlights a key tension. While 93% of CFOs recognise sustainability as a long-term driver of value, 61% still see it primarily as a cost—a discretionary expense rather than a strategic asset. It's a bit of a paradox: many know that sustainability builds resilience and competitiveness, but short-term financial pressures can make it tempting to put those investments on hold.

It's the classic challenge: sustainability is about long-term thinking, but finance often works on quarterly cycles.

That's why the increasing involvement of CFOs is so important. Their influence over budget decisions, capital allocation, and risk management puts them in a powerful position to embed sustainability into core financial strategy—transforming it from a "green side project" into a driver of business transformation.

The Road Ahead

The recognition of sustainability's business case by CFOs is more than a trend—it marks a shift in how we think about value creation. As finance leaders continue to align ESG goals with financial planning, companies are better positioned to navigate regulatory change, meet stakeholder expectations, and unlock new growth opportunities.

For sustainability professionals, this represents a moment of opportunity. When CFOs start seeing green not just as a color but as a long-term value proposition, real change becomes possible.

Looking to turn sustainability into a strategic advantage? We're here to help.

📌 For more insight, check out the full Kearney article: Staying the Course: Chief Financial Officers and the Green Transition