Finance & Investment

Despite Political Pressures, CFOs Still Betting on Sustainability

Three recent surveys of CFOs and execs across a range of industries and geographies show the majority understand the business case for sustainability and climate action, and are unswayed by the US administration’s renunciation of such initiatives.

Published 1 month ago | About a 8 minute read

Image: Sergei Tokmakov

Despite ongoing efforts from the new US administration to eradicate even the mention of ESG- and climate-related activities, the results of three new surveys of CFOs and execs across a range of industries and geographies show that the business world seems — for now, at least — to be standing firm in its support of good business.

BDO: CFOs see advantages of corporate sustainability

Image credit: BDO

According to BDO’s 2025 CFO Sustainability Outlook Survey — which polled 500 US-based chief financial officers (CFOs) across life sciences, healthcare, manufacturing, retail and technology — companies that integrate sustainability into their core business strategy are significantly more likely to project increased revenue and profitability compared to their peers.

Understanding the business case

Respondents report measurable returns from their corporate sustainability initiatives, from revenue growth to improved access to financing. These tangible benefits are reshaping how businesses view sustainability investments, shifting the conversation from "whether to invest" to "how much."

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In one standout statistic, 91 percent of organizations that are integrating sustainability into their business strategies expect increased revenue in 2025, versus just 74 percent of their peers.

“A sustainable business is stronger, more responsive to stakeholder expectations, and more resilient to economic headwinds,” said Karen Baum, Managing Principal; Sustainability & ESG Center of Excellence at BDO USA; Sustainability Services & Solutions at BDO Global. “When businesses move sustainability off the sidelines and integrate it into core business strategy, they create a strong offense – unlocking innovative growth pathways while defending against shifting market conditions.”

Organizations see many benefits from their sustainability initiatives, but capturing full value requires the strategic integration of a focused sustainability strategy. To realize ROI from their sustainability investments, BDO suggests CFOs consider the following actions:

Identify industry-specific opportunities. Benefits from sustainability initiatives vary significantly by sector. Develop benchmarks against industry peers to identify the most relevant and achievable benefits for your organization, then build targeted initiatives to capture that value.
Balance short- and long-term priorities. A targeted sustainability strategy captures immediate operational gains while establishing the foundation for broader transformation. Design your roadmap to achieve quick wins alongside systematic progress toward long-term financial and non-financial goals.
Find opportunity in risk. ESG risks are interconnected with other business risks — and may reveal inefficiencies or gaps that lead to innovation. Use materiality assessments to not only prioritize key risks, but also to uncover strategic opportunities for growth.

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

Kearney: 69% of CFOs expect higher ROI from sustainability initiatives than from traditional investments

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BDO’s findings echo that of Kearney’s recent survey of more than 500 CFOs, which reveals that 69 percent expect higher returns on sustainability initiatives compared to traditional investments.

The research surveyed 500 CFOs across India, the UAE, UK and US to understand how they are embedding sustainability within their strategies. Conducted in partnership with climate media platform We Don't Have Time, the findings of Staying the Course: Chief Financial Officers and the Green Transition highlight CFOs' confidence in the long-term value and profitability of sustainable investments despite growing geopolitical volatility and increased financial pressure. Adding to this optimism, 92 percent expect their organizations to significantly increase net investment in sustainability this year.

Financial risks and business cases

According to the research, 93 percent of CFOs recognize the business case for sustainability and climate investments. However, the survey reveals varying motivations behind these investments: 61 percent still view these sustainable investments through a cost-focused lens, rather than considering the long-term value they may generate.

On a positive note, 65 percent of CFOs are now acknowledging and measuring the cost of inaction — signaling an increasing awareness of the long-term risks posed by climate change and regulatory penalties, as well as opportunities related to green transition.

The research highlights that CFOs are focusing on sustainability investments that offer clear, short-term benefits in reducing emissions. The top three highest-ranked investment areas are:

Increasing the use of sustainable materials
Driving sustainable innovation and partnerships
Enhancing energy management and waste reduction

Workforce and investment strategies

CFOs are also responding to increasing pressure from employees to align their financial strategies with sustainable practices, with more than 71 percent of CFOs considering sustainability when selecting employee retirement funds.

The findings suggest that CFOs also still recognize the value of sustainable investments that both benefit the planet and resonate with values-driven investors and employees: An overwhelming majority (94 percent) say they now incorporate sustainability considerations into broader investment decisions.

As Beth Bovis, Partner and Global Sustainability Lead at Kearney, pointed out: "The perspective of CFOs is often overlooked in the corporate sustainability debate, yet their role is crucial. As those in control of financial levers, CFOs are uniquely positioned to have a long-term impact on business strategy. And our study highlights that they're already taking steps in this direction.

"ESG reporting is increasingly falling under the CFO's responsibilities. But beyond simply ensuring regulatory compliance, CFOs can lead the charge in driving investments that not only reduce emissions but also deliver tangible commercial value for the business."

"Finance chiefs are increasingly absorbing more of their organization's sustainability efforts, and our research shows that they are more than prepared for this responsibility,” said Ingmar Rentzhog, Founder & CEO at We Don't Have Time. "Looking ahead, with the UK government set to release its Sustainability Disclosure Standards this year, organizations will be forced to rethink how they measure and communicate their climate initiatives. CFOs will be crucial in navigating these changes, as they must assess and disclose their environmental impact — adding a new layer to financial reporting."

Workiva: Execs remain committed to integrating financial and sustainability data, despite policy uncertainty

Image credit: Antoni Shkraba

Meanwhile, respondents to Workiva’s recent poll of a broader range of executives believe companies that integrate financial and sustainability data are gaining a competitive edge.

When Workiva surveyed 1,600 global C-suite executives and VPs in finance and accounting, sustainability, internal audit, and legal departments — as well as 222 institutional investors — for its 2025 Executive Benchmark, 97 percent of executives said sustainability reporting will be a business advantage within two years, and 96 percent of investors agreed it strengthens financial performance; and they see integrated reporting as essential for resilience and growth.

“CEOs are making choices today that will shape their business for years to come,” said Workiva CEO Julie Iskow. “Assured financial and sustainability reporting is not simply a compliance play — it's a strategic approach to mitigate risk, fuel performance and strengthen investor confidence.”

Investors are responding. “The market has spoken, and forward-thinking companies aren’t waiting — they’re taking action and committing to science-based targets and stronger disclosures,” said Tensie Whelan, Distinguished Professor of Practice for Business and Society and Founding Director of the NYU Stern Center for Sustainable Business. “They understand that sustainability and integrated reporting isn’t just about risk management — it’s a competitive advantage that attracts capital and drives long-term success.”

Key findings:

97 percent of executives say integrated financial and sustainability data helps identify performance gaps that enhance financial growth opportunities.
85 percent will move forward with climate disclosures, regardless of political shifts.
92 percent of investors rank data accuracy as a foundational requirement to effectively evaluate organizations, yet nearly a quarter of executives do not fully trust their financial data.
93 percent of institutional investors are more likely to invest in companies with integrated financial and non-financial reporting.

“Other Chief Financial Officers and Chief Executive Officers that I talk to believe that sustainability is something that we cannot ignore,” said CEMEX CFO Maher Al-Haffar. “Sustainability is incredibly important because it contributes to the profitability of the business. As a CFO, I’m trying to get my hands around how to provide data for investors so that they can quantify it and model it.”

The results of all three surveys and recent actions by global leaders demonstrate that despite market complexities, executive commitment to meaningful sustainability action continues to accelerate — driven by clear evidence of its strategic and financial value.