How CFOs and Finance Functions can help drive corporate sustainability
As environmental and social challenges become more urgent, governments, regulators, and society are realizing the importance of sustainable development. Companies have played a big role in driving consumption through new products and marketing, but this growth often comes at a cost to the environment and society.
Traditionally, companies focused mainly on making profits for shareholders in the short term. But now, there’s a shift towards considering the long-term impact on the planet and people. Recent events like the pandemic and climate change have shown how vulnerable businesses can be.
To stay in business and be trusted by the public, companies need to think more about their impact on society and the environment. They should be transparent about their actions and how they’re performing, not just to shareholders but to everyone affected by their business.
Even though there are frameworks for reporting on sustainability, many companies, especially smaller ones, aren’t using them. Now, there’s a push for financial institutions and investors to encourage more companies to be sustainable.
Date: February 1, 2024
Source: Cambridge Institute for Sustainability Leadership
