Survey of 500 Chief Financial Officers (CFOs) conducted by global consultancy Kearney and media broadcaster We Don’t Have Time, 69% of CFOs expressed confidence that sustainability initiatives will yield higher returns than traditional investments. This revelation signals a major shift in corporate finance, where sustainability is no longer a compliance-driven obligation but a strategic business opportunity.

The report, titled "Staying the Course: Chief Financial Officers and the Green Transition," underscores how CFOs are taking an increasingly central role in sustainability finance, investment strategies, and ESG integration. Despite geopolitical uncertainties and financial pressures, 92% of CFOs surveyed plan to increase net investment in sustainability over the next year, demonstrating a clear commitment to long-term environmental and financial resilience.

Key Findings: The Business Case for Sustainability Investments

1. Profitability Over Compliance: The New CFO Perspective

• 93% of CFOs acknowledge the business case for sustainability investments, yet motivations vary.
• 61% still view sustainability through a cost-saving lens, rather than recognizing its long-term revenue potential.
• Encouragingly, 65% of CFOs now measure the cost of inaction, indicating a shift toward proactive climate risk assessment.

The message is clear: climate inaction carries a financial cost—whether through regulatory penalties, supply chain disruptions, or reputational risks. CFOs are now integrating sustainability as a value-generating asset rather than a liability.

2. Top Investment Priorities: Where CFOs Are Putting Their Money

With short-term returns a key driver, CFOs are focusing on areas where sustainability investments yield immediate business benefits. The top three investment priorities include:

• Sustainable materials adoption – transitioning away from resource-intensive materials to reduce costs and emissions.
• Sustainable innovation and partnerships – collaborating with green startups and tech firms to create sustainable business models.
• Energy management and waste reduction – lowering operational costs through energy-efficient processes and waste-cutting strategies.

This approach demonstrates that sustainability-driven financial planning is becoming deeply ingrained in corporate strategy, rather than an isolated corporate social responsibility (CSR) initiative.

3. Employee and Investor Influence on Green Finance

The rising influence of employees and values-driven investors on financial strategy is pushing CFOs to adopt sustainability-conscious investment policies:

• 71% of CFOs now factor sustainability into employee retirement fund selections, ensuring corporate benefits align with climate-conscious values.
• 94% incorporate sustainability considerations into broader financial decision-making, demonstrating a near-universal shift toward ESG-aligned corporate finance.

These findings highlight that sustainable finance is no longer just about external regulations—but also about internal expectations from employees, shareholders, and consumers.

Expert Insights: CFOs at the Forefront of the ESG Shift

Beth Bovis, Global Sustainability Lead at Kearney, emphasized the growing power of CFOs in shaping sustainable business strategies:
"The perspective of CFOs is often overlooked in the corporate sustainability debate, yet their role is crucial. As the gatekeepers of financial strategy, CFOs are uniquely positioned to embed sustainability into investment decisions that generate both commercial and environmental impact."

Similarly, Ingmar Rentzhog, CEO of We Don’t Have Time, pointed out that CFOs are absorbing more responsibility for ESG compliance and financial disclosure:
"With upcoming regulations such as the UK’s Sustainability Disclosure Standards, CFOs will need to rethink how they measure and report climate-related initiatives. ESG reporting is no longer just about compliance—it’s about accountability and financial transparency."

Analysis: The Road Ahead for CFOs in the Green Economy

With sustainability now seen as a financial growth driver rather than an operational cost, CFOs will play a critical role in shaping corporate finance for the green transition. However, challenges remain:

? Bridging the Cost-Savings vs. Value-Creation Gap: While sustainability is still viewed as a cost-cutting measure by many CFOs, long-term value creation through green investments must be better quantified to gain full executive buy-in.

? Regulatory Uncertainty and Reporting Challenges: The evolving global ESG regulatory landscape requires standardized, transparent financial disclosures, making data-driven sustainability reporting essential for CFOs.

? Scaling Green Finance Beyond Immediate ROI: CFOs must expand their sustainability focus beyond quick wins (such as energy savings) to broader decarbonization efforts, net-zero supply chain initiatives, and circular economy investments.

Conclusion: CFOs Must Lead the Green Financial Revolution

The survey results make one thing clear: sustainability is no longer an optional corporate initiative—it’s a financial imperative. With 69% of CFOs expecting higher returns from sustainability investments, and 92% increasing green spending this year, the transition to sustainable finance is accelerating at an unprecedented pace.

As businesses brace for heightened ESG reporting requirements, growing investor scrutiny, and increasing market volatility, CFOs must not only manage financial risk—but also seize the vast opportunities that sustainability presents.

The green transition isn’t just about the future of finance—it’s about the finance of the future.