By Julie Teigland
Sustainability is no longer just the domain of corporate responsibility teams. As Julie Teigland highlights, it is fast becoming a critical lever for CFOs to drive growth, shape strategy, and create value. With investor expectations shifting and global regulations tightening, financial leaders are uniquely positioned to turn sustainability reporting into a catalyst for business resilience and long-term performance.
In today’s rapidly evolving business landscape, sustainability isn’t just a buzzword – it’s a gamechanger for companies seeking to drive long-term value.
The business case for transformative sustainability investment can and needs to be made – and the Chief Financial Officer (CFO) will play an increasingly pivotal role.
As new regulations and investor expectations reshape the world of business, CFOs are stepping up to the plate, transforming from traditional financial stewards into dynamic “value architects.”
A recent EY survey found that 80% of institutional investors now demand a focus on long-term value over short-term gains, pushing CFOs to integrate sustainability into their core strategies and unlock new value for business.
Regulations such as the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy are setting stricter standards for ESG (environmental, social, and governance) disclosures, urging companies to rethink how they report on sustainability.
In the US, the SEC has introduced rules requiring publicly traded companies to disclose climate-related risks, making climate reporting a part of traditional financial reporting. Globally, initiatives from organizations like the International Sustainability Standards Board (ISSB) and the Science-Based Targets initiative (SBTi) are establishing strong benchmarks for consistency and accountability in ESG reporting.
With investors increasingly seeing sustainability as crucial to long-term financial performance, CFOs are under growing pressure to lead this transformation. By integrating sustainability into financial strategies, CFOs can meet regulatory demands and unlock substantial value, turning challenges into opportunities. CFOs are evolving from financial scorekeepers to “value architects,” aligning both financial and ESG goals to drive long-term success.
From Financial Scorekeepers to Value Architects
Traditionally, CFOs have been financial scorekeepers—responsible for monitoring performance, compliance, and financial health. Today, the scope of this role has expanded. As sustainability becomes a key driver of long-term business success, CFOs must evolve into “value architects.” This transformation means integrating both financial and ESG goals into a unified strategy.
This expanded role is not without its challenges. CFOs must navigate the complex interplay between short-term financial performance and long-term sustainability goals. Balancing the demands of investors, regulators, and other stakeholders while ensuring sustainable growth requires a delicate touch. Yet, the opportunity to drive value through sustainability is substantial. By aligning environmental goals with financial strategy, CFOs can help their organizations create long-term value for all their stakeholders.
Leveraging AI to Overcome Data Challenges
One of the most significant challenges in sustainability reporting is the management and consolidation of data. Legacy financial systems often create silos of information, making it difficult for CFOs to generate a clear and comprehensive view of the organization’s performance, both financially and in terms of ESG metrics.
This is where artificial intelligence (AI) and advanced analytics come into play. AI can unify disparate data sources, automate routine tasks, and provide CFOs with actionable insights that streamline both financial and sustainability reporting. By using AI to analyze and process data more efficiently, CFOs can deliver more accurate, timely, and transparent reports—essential in meeting both regulatory requirements and investor expectations.
For example, AI can identify patterns across financial and non-financial data, allowing CFOs to highlight the connection between sustainability initiatives and business outcomes. Whether it’s linking carbon footprint reductions with cost savings or demonstrating how diversity initiatives contribute to improved company performance, AI can provide CFOs with the tools they need to make data-driven decisions that align with long-term value creation.
Shifting Mindsets: Investors, Stakeholders, and CFOs
Investor perspectives on sustainability are shifting. It is increasingly seen as integral to long-term financial performance and business resilience. Today, sustainability is no longer viewed purely as an ethical issue—it is a key driver of value creation.
However, despite the pressure, EY’s 2024 Global Corporate Reporting Survey found that fewer than half of CFOs (48%) currently see themselves as proactive value creators in sustainability. Encouragingly, the survey reveals that 80% of CFOs are confident in their ability to embrace this expanded role. This growing recognition that sustainability contributes to long-term value offers a powerful incentive for CFOs to take a more active role in shaping corporate strategy around ESG goals.
By integrating sustainability into the core of business strategy, CFOs can guide their organizations toward more responsible, profitable growth. Sustainability is no longer a “nice-to-have” add-on; it’s integral to ensuring long-term success.
Building a Resilient, Value-Driven Future
In the age of complexity, where business challenges are increasingly interconnected, CFOs must lead their organizations in embracing both financial and ESG metrics. This requires a shift in mindset—from viewing sustainability as a regulatory burden to recognizing it as a strategic lever for growth and resilience.
To build a resilient future, CFOs must invest in the right talent, technology, and culture. This means ensuring that their teams are equipped with the skills necessary to manage both financial and non-financial data, investing in AI and other technologies that can streamline reporting processes, and fostering a culture of innovation that prioritizes long-term sustainability alongside financial performance.
CFOs must also work closely with CEOs, other C-suite executives, and shareholders to ensure that sustainability is woven into the fabric of the company’s long-term strategy. This alignment is essential for delivering on the promises of sustainability reporting and ensuring that the business remains competitive, resilient, and accountable to all stakeholders.
The Role of CFOs as Chief Value Officers
Ultimately, CFOs are well-positioned to redefine their roles as leaders in the integration of sustainability and financial strategy. By embracing the shift towards long-term value creation, they can navigate the evolving regulatory landscape, meet investor expectations, and create lasting competitive advantages for their organizations.
While the path to a sustainable business model may come with challenges, the rewards are substantial. CFOs who lead this transformation will not only future-proof their companies but also demonstrate that sustainability and profitability are intertwined.
Sustainability reporting is no longer just a compliance requirement—it’s a powerful opportunity for CFOs to leverage technology, drive strategic change, and position their organizations for long-term growth and resilience.
The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.
About the Author
As Global Vice Chair – Alliances & Ecosystems, Julie Teigland leads EY’s strategic alliances, driving innovation and growth through global partnerships. With 30 years’ experience, she also serves as EMEIA Area Managing Partner, overseeing 160,000 people across 95 countries and US$22b in revenue, enhancing EY’s client value and market presence.
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