While debates around climate change are only getting hotter in 2025, chief financial officers surveyed in December appeared to be holding firm to their commitment to sustainability.
In a poll of 500-plus finance chiefs by management consultancy Kearney and climate media platform We Don’t Have Time, 93% of them said they saw a clear business case for sustainability. Ninety-two percent expect to invest more in sustainability this year, with over half saying investments will be significantly increased. The sentiments were consistent across several geographies included in the research (United States, U.K., United Arab Emirates and India).
Nearly two-thirds (62%) of survey respondents said they planned to allocate more than 2.1% of their revenue to sustainability in 2025. That result did not justify what the report called a “growing concern” throughout last year that green investments would slow down, according to Kearney.
The business case for investment is about much more than companies’ public image. More than two-thirds (69%) of those surveyed indicated that they expected a higher ROI from sustainability initiatives compared with conventional investments, Kearney noted in its survey report.
Counterintuitively, given these research findings, 61% of participants, said they see sustainability initiatives primarily as a cost decision as opposed to a value creator.
“The apparent contradiction suggests that although CFOs recognize the potential for long-term gains, immediate financial pressures or uncertainties may lead to framing sustainability efforts as cost-centric,” the report said. Kearney advised CFOs to reframe sustainability as a strategic value driver by focusing on communicating the ROI and the competitive advantages to stakeholders.
The report also pointed out that there’s a cost associated with not taking action. Many investment-evaluation models “are becoming insufficient as they do not account for risks connected to ‘business as usual,’ be it the relevance of offerings, supply chain disruption, or inefficiencies,” according to the report.
Most CFOs have understood that nuance, with 84% reporting they’ve changed their business case evaluation models to incorporate these sustainability considerations. In fact, 65% of survey-takers said they already measure the cost of failing to transition to sustainable practice. In the United States, that figure was 75%.
Further, companies are growing more specific about where to allocate resources, showing more of a preference for short-term actions rather than a long-term transformation, the report said.
Kearney recommended that finance chiefs explore green bonds, sustainability-linked loans, and other financial instruments that incentivize sustainable practices.
They also should invest in data and metrics that can “shift the narrative from cost to opportunity and serve as a fact base for directing funds to areas where they have the biggest impact.”
Overall, finance chiefs are integrating sustainability more broadly across their businesses. For example, a solid majority (71%) said they consider sustainability when choosing employee retirement funds.
Kearney opined that CFOs have “a unique role in bridging financial acumen with business strategy.”
