The Role of the CFO and Finance Function in the Climate Transition: Driving Value and Sustainability

In our latest report with ACCA and IFAC we explore how CFOs and finance teams are adapting their role, using their professional skills, and acquiring new areas of knowledge and capability needed to transition to a lower-emission society.

We asked over 1,000 senior finance professionals around the world for their views as part of our research for this report. While in some areas there is progress being made, many organisations appear not to be on the critical path or are not as far along the journey as perhaps they need to be.

The research reveals that almost half of respondents (46%) have yet to produce a plan for reducing their carbon emissions. Nearly 70% of those respondents without an emissions plan say they currently have no intention of developing one. This is a significant problem given that successful transition planning to a low carbon business starts with the development of a robust emissions plan.

Roadmap for success

The finance function has a central role to play in driving a transition and creating sustainable, successful business models for the future. In the report we share 10 specific insights and action plans to help finance teams play their part in delivering net zero ambitions.

Download the report The Role of the CFO and Finance Function in the Climate Transition

“This report highlights a critical gap where some businesses lack a clear roadmap to meet their emissions targets and the ability to measure and report progress against their goals. It's imperative for finance leaders not just to drive the change towards sustainability but also to build trust in the reporting of progress towards sustainability goals. CFOs can play a pivotal role in integrating environmental considerations into strategy, planning and reporting - ensuring that businesses not only contribute positively to the climate agenda but also adapt and thrive in a rapidly changing economic landscape.”

_{David Russell

Finance Transformation Leader, PwC UK}

Finance teams must lean in and drive the agenda

Accountancy and finance professionals need to make sure that they have enhanced their existing skillsets with relevant sustainability-related capabilities. They then need to apply them in their work related to risk management, data, technology, scenario modelling and, reporting and assuring in the context of the organisation’s purpose and business objectives.

This will enable them to lead and be effective in delivering this strategic imperative and ensuring the organisation they work for has a business model that is fit for the future. In their drive to gain the necessary skills and knowledge, accounting and finance professionals need to take advantage of the learning opportunities available to them in the form of certifications and other continuous learning, particularly from the professional accountancy organisations to which they belong.

“Sustainability is a mindset that needs to be embedded throughout an organisation. Finance leaders have a crucial role to play in moving the sustainability agenda beyond compliance and opening up new opportunities for their organisations to create value and deliver both climate and commercial outcomes.”

_{Lynne Baber

Sustainability Practice Leader, PwC UK}