If you've no account register here first time
User Name :
User Email :
Password :

Login Now

Nearly 50% of CFOs Say Sustainability is Key Driver of Financial Performance

Nearly one half of CFOs see sustainability as a key driver of financial performance and two-thirds are involved in driving strategies in their organizations, according to a global Deloitte survey of 250 CFOs, representing companies with greater than $1 billion in annual revenue.

The Sustainability: CFOs are Coming to the Table survey, which was conducted by Verdantix on behalf of Deloitte and included financial officers from companies based in 14 countries, found the percentage of CFOs and COOs accountable to their company’s board for sustainability issues nearly doubled from 20 percent to 36 percent in the past year.

At the same time, sustainability accountability decreased for CEOs from 56 percent in 2011 to 44 percent this year. This shift represents a transfer of sustainability authority from “face of the brand” CEOs into the hands of those empowered with operating authority and substantive budgets, Deloitte said in a report summarizing the survey.

As a result, CFOs have become increasingly focused on a number of sustainable operating practices, including tax and financial reporting and investments in technology that will further reduce the footprint of company travel and energy use.

One in two retail CFOs plan to invest in building energy equipment in the next two years, according to the survey. Video conferencing, data center efficiency equipment and electric vehicles were three areas that saw the largest year-over-year gains in investments CFOs were planning to make.

Some 56 percent of CFOs said they planned to invest in video conferencing this year, up from 42 percent in 2011. More than one-thirds of CFOs (35 percent) say they plan to invest in EVs this year, up from 21 percent in 2011. More than half of CFOs (52 percent) plan to invest in data efficiency equipment in 2012, up from 38 percent last year.

A Deloitte report released in June found a company’s environmental behavior affects its market value. The report, “Drivers of Long-Term Business Value: Stakeholders, Stats and Strategy” said an organization’s understanding of how its stakeholders perceive and value the organization’s environment, social and governance issues can lead to financial benefits.

6 Things to Consider When Deciding Whether to Build or Buy Software
Sponsored By: Progressly

  
Operationalizing EHS Management: Bridge the Gap from Strategy to Execution
Sponsored By: LNS Research

  
Right On Time
Sponsored By: Gensuite

  
Approaches to Managing EHS&S Data
Sponsored By: Enablon

  

2 thoughts on “Nearly 50% of CFOs Say Sustainability is Key Driver of Financial Performance

  1. From a pragmatic perspective the sustainability movement is driven by an economic imperative. The Verdantix report highlights this fact. CFO’s are doing what they can to reduce costs, and in doing so are having a greater impact on resource consumption in the fact of resource constraint. Slowly, we are coming around to the fact that the magic of social pressure lies in proving the economic case.

  2. Sometimes these surveys finally state what we have all appreciated for years.
    Safety, Health, Environment, Quality Assurance, Business Continuity, Corporate Social Responsibility and Risk Management yes Sustainability is the short hand way to describe those seven core functions does protect the business, does add to the viability of the business does add to the bottom line. They are value added service they make the difference.
    I just seriously hope that this will be the turning point that corporations will now see the return on Investment that sustainability can bring rather than the traditional view of the function being in the ‘nice to have’ category but we have more important things to do!

Leave a Comment