Most CFOs see sustainability spending as a cost, yet still expect better returns  

Survey of 500 finance heads points to ‘nuanced perspective’ on cost implications of sustainability

Most CFOs see investments into sustainability as a business cost, rather than a value driver, yet still expect them to generate better returns than conventional investments.  

The apparent contradiction showed up in a survey of 500 finance heads by consultancy Kearney, published on Monday. 

The CFOs were found overall to be bullish on investing in sustainability, with 93% seeing a “clear business case” for it. Nearly 70% anticipated higher returns than on conventional investments.   

But despite the positivity, the poll also revealed that 61% perceive sustainability investments as a cost decision, primarily, rather than a driver of value creation.  

Kearney ventured that the paradox could be the result of a clash between CFOs’ short- and long-term perspectives, with an appreciation of the strategic value of such spending existing alongside immediate financial pressures.  

More than 90% of participants stated they would increase their investments in sustainability this year, despite slowing economic growth and the fraught geo-political landscape.   

Nearly two-thirds plan to allocate more than 2% of revenue towards sustainability in 2025. 

Most CFOs (84%) said they have changed their financial models to incorporate sustainability considerations, with 65% claiming to measure the cost of inaction.  

This was most prevalent in the US, which is seeing ferocious backlash against corporate sustainability, and where three-quarters of CFOs have established metrics to capture the cost of inaction.