10/25/2024 | News release | Distributed by Public on 10/25/2024 10:25
The shift from voluntary to mandatory sustainability reporting and the need to produce consistent, investor-grade disclosures has had a profound impact on how firms manage ESG internally. A regulation that has been particularly transformative is the EU's Corporate Sustainability Reporting Directive (CSRD), which effectively extends responsibilities beyond the sustainability team to multiple functions across the organization. One role that will see a notable evolution in its responsibilities as a result is the CFO.
Our survey research shows the increasing involvement of the CFO in ESG and sustainability. In the Verdantix 2024 ESG and sustainability global corporate survey, 73% of respondents viewed the CFO as a 'leading' or 'significant' persona in funding sustainability strategies - an increase of 24% since 2023. Perhaps more revealing is that 53% of respondents saw the CFO as a 'leading' or 'significant' persona in defining the firm's sustainability strategy, suggesting that sustainability is becoming more of a strategic priority for businesses.
CFOs have two key roles to play when it comes to sustainability:
Ensuring CSRD and ESG compliance more generally will ultimately require the participation of multiple internal stakeholders, far beyond just the CFO and CSO - which is a key factor in the regulation's transformative nature.
Lily is a Senior Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on ESG and sustainability services, ESG assurance, and sustainable finance. Lily joined Verdantix in 2022 and has previous experience in social impact research and ESG software development. She holds an MSc in Women, Peace & Security from the London School of Economics and Political Science and a BA in Theology & Religion from the University of Bristol.