Insight
Why CFOs are essential to the sustainability agenda 2022
5 key reasons why CFOs and Finance Directors are essential to the sustainability agenda
As sustainable objectives move up the corporate agenda, Finance Directors and CFOs are uniquely positioned to introduce and promote environmentally friendly business strategies. As sustainability has large implications on finances, it’s within their circle of influence to shift the company towards more sustainable practices. Leaders in these roles are empowered to make a real impact and transform their industry.
But what roles can CFOs and Finance Directors take to tackle this issue?
1/ Catalysts
CFOs and Finance Directors are catalysts in creating change and moulding an organisation’s future. They are able to efficiently plan, budget, and implement a timely sustainable transition within their entire organisation involving all departments.
2/ Culture changers
CFOs’ and Finance Director’s role is to respond to stakeholder pressures, which in this case is on the topic of sustainability. Their role is to initiate the measures on all levels of all departments, which can most effectively be done through integrating sustainability into the organisation’s culture. This is a huge task and one that requires the initial input of CFOs and Finance Directors, as the heads of the finance hierarchy.
3/ Stewards
CFOs and Finance Directors also have a vital role in protecting the assets of an organisation, ensuring adherence to any laws and regulations whilst also communicating value effectively to the board, investors, and stakeholders. No one else is in a better position when it comes to embracing sustainability initiatives and quantifying their impact on their long-term performance.
4/ Strategists
CFOs and Finance Directors can facilitate a transition toward a sustainable organisation by utilising their core skills in resource allocation skills, reporting systems, and financial analysis. They are already proficient in quantifying the financial value produced and in coordinating the process of integrating new initiatives into the overall corporate strategy.
5/ Operators
Finally, CFOs and finance leaders can overlook their departments to ensure that they are maximising the impact of sustainability-driven practices. They can integrate new data sources, data flows, and, possibly, entirely new systems to make sure that they are constantly improving their reporting systems and providing reliable data.
In short
The role of finance directors and CFOs is pivotal in the implementation of the sustainability agenda. Sustainability needs to be a top priority, and Finance Leaders can make a huge impact by quantifying and promoting the financial benefits of sustainable business practices.
