Sustainability isn't just good for the planet; it's good for business too.
A joint survey from Kearney, a top global management consulting firm, and leading climate action media platform We Don't Have Time revealed that many chief financial officers increasingly value sustainability in business decisions, FinTech Magazine reported.
Having sustainability at the forefront of business strategies can help move the needle on reaching global climate targets.
According to the research, 93% of the 500 CFOs interviewed "see a clear business case for sustainable investments" and 92% of CFOs plan to "increase their sustainability investments, with more than half committing to significant increases," per FinTech.
Sustainable initiatives such as improving energy management and reducing waste conserve limited natural resources while helping businesses cut operational costs. As executives primarily concerned with managing the company's financial affairs, CFOs would be hard-pressed to turn down initiatives that save their companies money.
Large corporations such as Coca-Cola and the NBA are making strides toward embracing more sustainable practices. The NBA is coordinating game schedules to reduce unnecessary travel between cities, while Coca-Cola is supporting plastic waste management efforts in Asia, where plastic waste is prevalent.
Data from the joint survey also revealed that while CFOs recognize their companies' potential savings from sustainability initiatives, many are still wary of larger structural sustainability projects that would require more substantial investments.
However, CFOs must consider and invest in sustainability solutions to "future-proof" operations, particularly in meeting changing environmental regulatory standards. Making sustainability investments today means preparing companies for tomorrow.
As the world shifts toward a cleaner economy, investors are following suit. A Morgan Stanley report found that investors have a growing interest in sustainability investing, or supporting companies that demonstrate responsibility to effect positive (environmental) change in the world. A company's environmental, social, and governance metrics help investors determine whether a company is worth investing in.
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"These investors express a desire for their investments to advance positive environmental and social impact, creating opportunities for finance professionals to meet these needs," said Jessica Alsford, Morgan Stanley's chief sustainability officer, per Morgan Stanley.
"When done right, sustainability is good for business," Beth Bovis, global lead for sustainability at Kearney, said, per FinTech.
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