Despite Political Pressures, CFOs Still Betting on Sustainability

Despite ongoing efforts from the new US administration to eradicate even the
mention of ESG- and climate-related activities, the results of three new surveys
of CFOs and execs across a range of industries and geographies show that the
business world seems — for now, at least — to be standing firm in its support of
good business.

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BDO: CFOs see advantages of corporate sustainability

Image credit: BDO

According to BDO’s 2025 CFO Sustainability Outlook
Survey
— which polled 500 US-based chief financial officers (CFOs) across life
sciences, healthcare, manufacturing, retail and technology —
companies that integrate sustainability into their core business strategy are
significantly more likely to project increased revenue and profitability
compared to their peers.

Understanding the business case

Respondents report measurable
returns from
their corporate sustainability initiatives, from revenue growth to improved
access to financing. These tangible benefits are reshaping how businesses view
sustainability investments, shifting the conversation from “whether to invest”
to “how much.”

In one standout statistic, 91 percent of organizations that are integrating
sustainability into their business strategies expect increased revenue in 2025,
versus just 74 percent of their peers.

“A sustainable business is stronger, more responsive to stakeholder
expectations, and more resilient to economic headwinds,” said Karen
Baum, Managing Principal;
Sustainability & ESG Center of Excellence at BDO USA; Sustainability Services &
Solutions at BDO Global. “When businesses move sustainability off the sidelines
and integrate it into core business strategy, they create a strong offense –
unlocking innovative growth pathways while defending against shifting market
conditions.”

Organizations see many benefits from their sustainability initiatives, but
capturing full value requires the strategic integration of a focused
sustainability strategy. To realize ROI from their sustainability investments,
BDO suggests CFOs consider the following actions:

Identify industry-specific opportunities. Benefits from sustainability
initiatives vary significantly by sector. Develop benchmarks against
industry peers to identify the most relevant and achievable benefits for
your organization, then build targeted initiatives to capture that value.
Balance short- and long-term priorities. A targeted sustainability
strategy captures immediate operational gains while establishing the
foundation for broader transformation. Design your roadmap to achieve quick
wins alongside systematic progress toward long-term financial and
non-financial
goals.
Find opportunity in risk. ESG risks are interconnected with other
business risks — and may reveal inefficiencies or gaps that lead to
innovation. Use materiality
assessments
to not only prioritize key risks, but also to uncover strategic
opportunities for growth.

“Moving into 2025, it’s clear CFOs are not just adapting to change but are
actively embracing it and helping shape their organization’s response,” said
Wayne Berson, CEO of BDO USA. “The
bold steps being taken in AI,
workforce development, and sustainable operations are not merely reactions to
market pressures — they are strategic moves to refine and redefine how leaders
are conducting business. By embracing innovation and prioritizing
resilience,
these leaders are setting a new trajectory for growth.”

Kearney: 69% of CFOs expect higher ROI from sustainability initiatives than from traditional investments

Image credit: Vitaly Gariev

BDO’s findings echo that of
Kearney’s
recent survey of more than 500 CFOs, which reveals that 69 percent expect higher
returns on sustainability initiatives compared to traditional investments.

The research surveyed 500 CFOs across India, the UAE, UK and US
to understand how they are embedding sustainability within their strategies.
Conducted in partnership with climate media platform We Don’t Have
Time, the findings of Staying the Course:
Chief Financial Officers and the Green
Transition
highlight CFOs’ confidence in the long-term value and profitability of
sustainable investments despite growing geopolitical volatility and increased
financial pressure. Adding to this optimism, 92 percent expect their
organizations to significantly increase net investment in sustainability this
year.

Financial risks and business cases

According to the research, 93 percent of CFOs recognize the business case for
sustainability and climate
investments.
However, the survey reveals varying motivations behind these investments: 61
percent still view these sustainable investments through a cost-focused lens,
rather than considering the long-term value they may generate.

On a positive note, 65 percent of CFOs are now acknowledging and measuring the
cost of
inaction
— signaling an increasing awareness of the long-term risks posed by climate
change and regulatory penalties, as well as opportunities related to green
transition.

The research highlights that CFOs are focusing on sustainability investments
that offer clear, short-term benefits in reducing emissions. The top three
highest-ranked investment areas are:

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

Workforce and investment strategies

CFOs are also responding to increasing pressure from employees to align their
financial strategies with sustainable practices, with more than 71 percent of
CFOs considering sustainability when selecting employee retirement
funds.

The findings suggest that CFOs also still recognize the value of sustainable
investments that both benefit the planet and resonate with values-driven
investors and employees: An overwhelming majority (94 percent) say they now
incorporate sustainability considerations into broader investment decisions.

As Beth Bovis, Partner and
Global Sustainability Lead at Kearney, pointed out: “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.

“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.”

“Finance chiefs are increasingly absorbing more of their organization’s
sustainability efforts, and our research shows that they are more than prepared
for this responsibility,” said Ingmar
Rentzhog, Founder & CEO at We Don’t Have
Time. “Looking ahead, with the UK government set to release its Sustainability
Disclosure
Standards
this year, organizations will be forced to rethink how they measure and
communicate their climate initiatives. CFOs will be crucial in navigating these
changes, as they must assess and disclose their environmental impact — adding a
new layer to financial reporting.”

Workiva: Execs remain committed to integrating financial and sustainability data, despite policy uncertainty

Image credit: Antoni Shkraba

Meanwhile, respondents to Workiva’s recent poll of a broader range of
executives believe companies that integrate financial and sustainability data
are gaining a competitive edge.

When Workiva surveyed 1,600 global C-suite executives and VPs in finance and
accounting, sustainability, internal audit, and legal departments — as well as
222 institutional investors — for its 2025 Executive
Benchmark,
97 percent of executives said sustainability reporting will be a business
advantage within two years, and 96 percent of investors agreed it strengthens
financial performance; and they see integrated reporting as essential for
resilience and growth.

“CEOs are making choices today that will shape their business for years to
come,” said Workiva CEO Julie Iskow.
“Assured financial and sustainability reporting is not simply a compliance play
— it’s a strategic approach to mitigate risk, fuel performance and strengthen
investor confidence.”

Investors are responding. “The market has spoken, and forward-thinking companies
aren’t waiting — they’re taking action and committing to science-based targets
and stronger disclosures,” said Tensie
Whelan, Distinguished
Professor of Practice for Business and Society and Founding Director of the NYU
Stern Center for Sustainable
Business.
“They understand that sustainability and integrated reporting isn’t just about
risk management — it’s a competitive advantage that attracts capital and drives
long-term success.”

Key findings:

97 percent of executives say integrated financial and sustainability data
helps identify performance gaps that enhance financial growth opportunities.
85 percent will move forward with climate disclosures, regardless of
political
shifts.
92 percent of investors rank data accuracy as a foundational requirement to
effectively evaluate organizations, yet nearly a quarter of executives do
not fully trust their financial data.
93 percent of institutional investors are more likely to invest in companies
with integrated financial and non-financial reporting.

“Other Chief Financial Officers and Chief Executive Officers that I talk to
believe that sustainability is something that we cannot ignore,” said CEMEX CFO
Maher Al-Haffar. “Sustainability
is incredibly important because it contributes to the profitability of the
business. As a CFO, I’m trying to get my hands around how to provide data for
investors so that they can quantify it and model it.”

The results of all three surveys and recent actions by global leaders
demonstrate that despite market complexities, executive commitment to meaningful
sustainability action continues to accelerate — driven by clear evidence of its
strategic and financial value.

Sustainable Brands Staff

Published Feb 21, 2025 8am EST / 5am PST / 1pm GMT / 2pm CET

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Despite Political Pressures, CFOs Still Betting on Sustainability