BDO USA: CFOs to Double Down on ESG Despite Political Shifts

Despite expectations that the newly elected US administration may roll back environmental regulations, Chief Financial Officers (CFOs) across industries remain committed to sustainability.

According to BDO's 2025 CFO Sustainability Outlook Survey, which spoke with over 500 CFOs, 77% of surveyed finance leaders plan to maintain or increase their sustainability investments over the coming year.

The findings suggest that for many organisations, sustainability is no longer an optional add-on but a core business strategy. 

As Karen Baum, Managing Principal of BDO's Sustainability & ESG Centre of Excellence, explains: “A sustainable business is stronger, more responsive to stakeholder expectations and more resilient to economic headwinds.”

The business case for sustainability

Companies that have embraced sustainability as a long-term strategy are seeing tangible benefits. 

CFOs reported gains in revenue, cost savings, risk management and access to favourable financing opportunities as a direct result of ESG initiatives. 

Among those actively integrating sustainability into their business strategies, 91% expect increased revenue in 2025, compared to 74% of companies still focused primarily on compliance and stakeholder expectations.

A sectoral breakdown highlights varying priorities. 

In the technology industry, 52% of CFOs identified sustainable supply chain management as their primary area of ​​investment, reflecting growing concerns over emissions from data centres, particularly with the rise of artificial intelligence. 

Manufacturing firms, on the other hand, placed a greater emphasis on cost reduction (45%) and materials use efficiency (37%). 

Meanwhile, in healthcare, 46% prioritised employee health and wellbeing, underscoring the industry's unique workforce challenges.

Regulatory shifts and risk perceptions

While the Biden administration's sustainability policies may be under review, CFOs are not waiting for political certainty to act. 

Instead, they are adapting to a global regulatory environment where ESG reporting requirements are becoming increasingly stringent. 

European Union regulations, in particular, are influencing multinational corporations, forcing US-based companies to align their strategies with global expectations.

ESG-related risks are now ranked among the most significant business threats of 2025, alongside operational and product risks. 

Technology companies, which face heightened scrutiny over data privacy, AI governance, and cybersecurity, were particularly concerned—58% of tech CFOs cited ESG as a significant business risk, 13% higher than the overall average.

Shifting from compliance to strategy

Despite the clear benefits of sustainability investment, a majority of CFOs (70%) still approach ESG from a reactive standpoint, focusing on regulatory compliance or meeting stakeholder expectations rather than embedding sustainability into core business strategy. 

Just 21% are actively working to integrate sustainability initiatives, although this group is expected to grow as financial leaders increasingly recognise the link between ESG maturity and competitive advantage.

Among CFOs already embedding sustainability into their operations, increased engagement is a notable trend. 

In the technology sector, 59% of CFOs anticipate a greater role in ESG strategy this year, reflecting the financial and operational stakes of sustainable business practices. 

Even in healthcare, where sustainability has traditionally been a lower priority, CFO involvement is set to double from 25% in 2024 to 48% in 2025.

The road ahead for CFOs

As companies navigate an uncertain political landscape, the direction of travel for sustainability remains clear. 

Forward-thinking CFOs are focusing on ESG initiatives that deliver measurable financial and operational benefits rather than treating sustainability as a compliance burden. 

“When businesses move sustainably off the side lines and integrate it into core business strategy, they create a strong offense—unlocking innovative growth pathways while defending against shifting market conditions,” says Karen.

For CFOs, the challenge is no longer whether to invest in sustainability but how to maximise returns while managing risks. 

As ESG expectations continue to evolve, financial leaders who proactively integrate sustainability into their core strategy will be best positioned to navigate regulatory changes, secure competitive advantage, and drive long-term value.

“Moving into 2025, it's clear CFOs are not just adapting to change but are actively embracing it and helping shape their organisation's response,” says 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 prioritising resilience, these leaders are setting a new trajectory for growth.”

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