A new BDO survey indicates that despite the election of a new US administration that opposes many ESG initiatives, corporate sustainability-focused plans continue to grow.
CFOs prioritize sustainability in risk management, with ESG risk ranking third (45%). However, most companies are at earlier stages of sustainability maturity, with only 21% integrating sustainability initiatives into their business strategy. Forty percent of CFOs focus on addressing stakeholder expectations and regulatory compliance.
• 44% anticipate increasing sustainability investment, twice the rate of those planning to decrease.
• 33% expect no change in investment.
CFO benefits from sustainability initiatives:
• Increased innovation and new business opportunities (37%).
• Increased revenue (36%).
• Access to favorable financing (34%).
• Cost savings (30%).
• Enhanced customer loyalty (30%).
The report indicates that 91% of companies integrating sustainability anticipate increased revenue and profitability in 2025, outperforming only 74% and 56% of their peers, respectively.
The survey indicates that US CFOs’ focus on sustainability is shifting from environmental and social initiatives to operational and stakeholder impact, with only 22% focusing on carbon footprint reduction, 26% on climate change mitigation, and 26% on DEI. The study said that 40% of CFOs will focus on employee health and wellbeing, 39% on sustainable product development, and 34% on sustainable supply chain management.
The survey indicates that sustainability is expected to become a top priority for CFOs, with 80% predicting an increase or steady involvement in ESG strategy within the next year.
BDO surveyed about 500 CFOs at US businesses across the life sciences, healthcare, manufacturing, retail, and technology industries, with revenues ranging from under $250 million to over $3 billion.
