Kearney: What 500 CFOs Think About Sustainable Investment
“For months, we've seen headlines about companies walking back climate commitments. But a new global survey of 500 CFOs tells a very different story.”
These are the words of Ingmar Rentzhog, CEO and Founder of We Don't Have Time, self-described as the world's largest media platform for climate action.
The survey to which Ingmar refers is one that his organisation contributed, along with Kearney , one of the world's foremost management consultancy firms.
The report finds that Chief Financial Officers (CFOs) are often absent from discussions on sustainability, yet they hold the power to shape corporate investment priorities.
Based on a survey of more than 500 CFOs across the UK, US, UAE and India, the findings challenge fears that sustainability investments might stall amid economic and geopolitical uncertainty.
“With a slowing global economy, rising geopolitical tensions, and increasing extreme weather events, are CFOs still investing in sustainability?” asks Angela Hultberg, Global Director of Sustainability at Kearney.
“What better way to find out than to ask them directly.”
The report shows that 92% of CFOs plan to increase sustainability investments, with more than half committing to significant increases.
This suggests that sustainability has firmly moved beyond being a discretionary concern to a core business imperative.
While global economic growth remains sluggish and regulatory burdens mount, the data indicates that businesses are prioritising near-term sustainability measures that deliver immediate financial and environmental returns.
Immediate emissions reductions take precedence
Rather than broad, long-term sustainability goals, CFOs are directing funds towards initiatives with measurable short-term impact.
Priorities include increasing the use of sustainable materials, improving energy management, reducing waste and investing in sustainable partnerships and innovation.
Compliance with ESG regulations also remains high on the agenda, reflecting continued regulatory pressure.
These trends align with a global shift towards urgent emissions reductions by 2030 rather than distant net zero targets for 2050.
The report notes that these efforts often align sustainability goals with financial objectives, as reduced energy consumption and waste management also lower operational costs.
However, the findings also indicate that companies remain cautious about deeper, structural transformations that might require more substantial investment.
The evolving business case for sustainability
The researchers also found that corporate finance leaders are increasingly recognizing sustainability as a driver of business value, which bodes very well for the global pursuit of sustainability.
The report finds that 93% of CFOs see a clear business case for sustainable investments, while 69% believe these initiatives will yield higher returns than conventional investments.
However, this optimism is tempered by financial concerns, with 61% viewing sustainability investments primarily as a cost rather than a creator of value.
A growing number of CFOs are factoring in the financial risks of inaction.
The report finds that 65% already measure the cost of failing to transition to sustainable business practices, a figure that rises to 75% among US-based CFOs.
The need for future-proof operations against regulatory shifts, supply chain disruptions, and changing consumer expectations is shaping investment models, with 84% of CFOs adapting their financial evaluation frameworks to reflect these risks.
The optimism present in this sentiment is the reason for hope in the face of so many unpredictable externalities.
Mark Elsner, Head of the Global Risks Initiative at the World Economic Forum, has recently described the short-term forecasts for economic growth as “bleak” thanks to “environmental, societal, economic and other concerns of recent years.”
He also notes that state-based conflict is increasingly affecting the outlook for the WEF.
For CFOs to respond positively and redouble sustainability efforts showcases not only the commitment of CFOs, but also the strength of sustainability as a business case.
Sustainability embedded in financial decision-making
Beyond operational investments, CFOs are also embedding sustainability into broader financial strategies.
The report finds that 94% of CFOs incorporate sustainability into overall investment decisions, while 71% consider it when selecting employee retirement funds.
These actions signal a shift towards embedding sustainability principles across corporate finance, ensuring that financial resources are directed towards sustainable growth.
This approach extends beyond individual companies.
By integrating sustainability considerations into investment strategies, businesses are influencing industries and markets at large, reinforcing the transition to a greener economy.
The CFO as a driver of sustainable transformation
CFOs are uniquely positioned to drive meaningful progress in corporate sustainability.
Their ability to align financial strategy with sustainability objectives allows them to create measurable value, enhance transparency and build resilience in the face of environmental risks.
The report highlights several key actions to advance sustainability in corporate finance. CFOs must reframe sustainability as a strategic value driver, ensuring that the financial benefits of green investments are clearly communicated to stakeholders.
The authors also found that leveraging financial tools like green bonds and sustainability-linked loans can help to incentivise sustainable business practices.
A call for financial leadership
Despite ongoing economic challenges, corporate finance leaders are demonstrating a strong commitment to sustainability.
The report makes it clear that CFOs are not merely responding to regulatory and reputational pressures but are proactively integrating sustainability into financial decision-making.
As the role of CFOs in the green transition grows, the business community must recognise the financial imperative of sustainable investment.
With the right strategies, tools, and collaborative efforts, CFOs have the potential to reshape the corporate landscape—turning sustainability from a compliance necessity into a cornerstone of long-term business success.
“When done right, sustainability is good for business,” says Beth Bovis, Global Lead for Sustainability at Kearney.
“Kearney's survey of CFOs shows that even with changing political winds, investing in sustainability advances business goals.”
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