The CFO’s role in ESG: driving sustainable business value
The CFO’s role in ESG: driving sustainable business value
The business landscape is undergoing a fundamental shift. Environmental, social and governance (ESG) concerns are no longer peripheral, they are central to strategic decision-making. Investors, regulators, customers and employees expect transparency and accountability on how organisations affect the world around them. In this evolving landscape, the Chief Financial Officer (CFO) finds themselves at a pivotal point.
No longer just a finance leader, today's CFOs are playing a broader role in driving long-term sustainable value. From shaping ESG strategy to ensuring transparent sustainability reporting and managing non-financial risks, CFOs are increasingly expected to embed ESG into long-term business strategies.
The dynamic shift from CFO to CVOWhat does the future of finance leadership look like? Get insights from nearly 100 CFOs worldwide in our joint report with the ACCA. |
Why do CFOs need to be on board with ESG and sustainability?
The expanding scope of the CFO role reflects a deeper shift in how business value itself is being redefined. Financial returns are no longer the sole metric of performance. Today, regulators, investors, boards, employees, suppliers and the wider community want to understand how a company contributes to long-term stability – whether through climate resilience, ethical supply chains, or social responsibility.
Our research in partnership with the Association of Chartered Certified Accountants (ACCA) highlights how CFOs are evolving into Chief Value Officers (CVOs) – leaders who bridge financial performance with non-financial impact.
This shift requires CFOs to assess how ESG risks and opportunities affect profitability, resilience and stakeholder trust.
In this context, CFOs are being asked not just to support ESG, but to lead it. By aligning ESG and finance, applying the same rigour to sustainability data as to financials and defining what sustainable value means for their organisation, CFOs play a crucial role in making ESG operational, measurable and strategic.
“There’s a big difference between simply responding to ESG requirements in tenders and proactively leading those conversations. It’s about moving from a reactive to a proactive approach – investing in sustainability, pushing these ideas up the chain and encouraging developers to adopt better practices that make a real difference.”
Tom Tutty, CFO, Glencar Construction
Read more: Tom Tutty, CFO of Glencar Construction, explains his value-driven approach
ESG as a driver of corporate value creation
As ESG becomes more central to business strategy, it’s increasingly seen as a key contributor to corporate value – and a potential source of competitive advantage. Strong ESG performance builds investor trust, improves market perception and reduces exposure to long-term risks.
Finance leaders are uniquely positioned to turn ESG ambition into action. By applying financial disciplines to sustainability metrics, such as carbon budgets or biodiversity measures, finance leaders can position ESG as a core indicator of long-term business value.
Business leaders are also recognising that integrating ESG into their business is critical. For capital markets and PE Houses, this kind of forward-looking accountability matters. Companies that can clearly articulate how ESG performance supports long-term value are more likely to attract investor confidence and secure strategic resilience.
The ESG regulatory landscape: what CFOs need to know
Today’s CFOs face the challenge of navigating an evolving landscape of sustainability measures. While the standards for ESG metrics are still developing, significant progress is being made to standardise indicators and reporting requirements.
European Union
The Corporate Sustainability Reporting Directive (CSRD), which came into effect in January 2023, is now fully operational. It significantly expands the scope and depth of mandatory sustainability disclosures for companies operating in the EU. CFOs must now ensure their organisations comply with these enhanced requirements around environmental, social and governance reporting, placing ESG data on par with financial data in terms of importance and auditability.
United Kingdom
As of 2024, the International Sustainability Standards Board (ISSB) standards, IFRS S1 and IFRS S2, have been formally adopted in the UK. These standards aim to improve the consistency, comparability and reliability of ESG disclosures, reinforcing market confidence and enabling clearer communication of ESG value to stakeholders.
The UK Transition Plan Taskforce (TPT) Disclosure Framework also continues to shape best practice in climate disclosure and transition planning.
United States
In the US, Securities and Exchange Commission (SEC) has effectively halted progress on the proposed ESG disclosure rules following a vote on March 27, 2025, to stop defending the climate-related disclosure requirements in court.
Had they been adopted, these rules would have required companies to disclose detailed climate risks and broader ESG impacts in their mainstream financial filings, with the aim to increase transparency and help investors better assess sustainability risks. However, after significant opposition, the SEC will no longer advance these requirements, casting uncertainty on the future of climate and sustainability disclosures in US markets.
How can we help?
BDO supports CFOs in leading ESG transformation – embedding sustainability into strategy, reporting and decision-making to create and drive long-term value.
Get in touch with one of our expert ESG advisors today.
Chief Value Officer: The Important Evolution of the CFO copyright © 2023 by the Association of Chartered Certified Accountants (ACCA). All rights reserved. Used with permission of ACCA. Contact insights@accaglobal.com for permission to reproduce, store or transmit, or to make other similar uses of this document.