Global CFO Study: Companies Refuse to Scale Back on Green Investments Amid Geopolitical Uncertainty
Leading global consultancy Kearney has today released its new report, ‘Staying the Course: Chief Financial Officers and the Green Transition’, revealing that 69% of CFOs expect higher returns on sustainability initiatives compared to traditional investments.
Regardless of geopolitical uncertainty and increased financial pressure, the data highlights CFOs' confidence in the long-term value and profitability of sustainable investments. Adding to this optimism, 92% expect their organisations to significantly increase net investment in sustainability this year.
The research, conducted by Kearney and We Don’t Have Time, surveyed 500 CFOs across several geographies including the United Kingdom (UK), United States (US), United Arab Emirates (UAE) and India, to understand how CFOs are embedding sustainability within their strategies.
Financial risks and business cases
According to the research, 93% of CFOs recognise the business case for sustainability investments. However, the survey reveals varying motivations behind these investments. 61% 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% of CFOs are now measuring the cost of inaction, signalling an increasing awareness of the long-term risks posted by climate change and regulatory penalties, as well as opportunities related to green transition.
Taking immediate action
The research highlights that CFOs are focusing on sustainability investments that offer clear, short-term benefits in reducing emissions. The top three investment areas that ranked highest include:
Increasing the use of sustainable materials
Driving sustainable innovation and partnerships
Enhancing energy management and waste reduction
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