Opportunities and Challenges for Chief Financial Officers in Sustainability Reporting

Sustainability has become a high priority in the business landscape, and sustainability reporting is a way to ensure compliance. However, beyond that, organizations can leverage this reporting mechanism to drive strategic value and positive changes in their business operations. To truly imbue sustainability into organizations, leaders at the top are responsible for spearheading these changes. Deloitte’s reporting series provides a guide for Chief Financial Officers to drive sustainability values and uphold good business practices.

Mandatory Sustainability Reporting

Sustainability reporting provides disclosure of a company’s social and environmental impacts, along with the progress in addressing them. This mechanism is being mandated worldwide at different scales and speeds. In Asia-Pacific, most countries will have financial and non-financial disclosures in place by 2027.

In this case, the role of Chief Financial Officers (CFOs) is essential. Deloitte’s “Asia Pacific Mandatory Sustainability Reporting Series” offers a comprehensive guide for Chief Financial Officers in their roles in building effective sustainability reporting models and driving systemic changes within organizations. The series consists of three papers discussing essential actions, building blocks, and impact generation for CFOs.

Opportunities and Challenges for Chief Financial Officers

Preparing for sustainability reporting requires commitments and resources similar to preparing for annual financial statements, which is why Chief Financial Officers are relevant. Deloitte’s global data shows that 32% of organizations have their CFOs as the executive in charge, and 16% have joint accountability between the CFOs and Chief Sustainability Officers. 

Despite the potential, CFOs often face challenges in navigating new and complex disclosure mechanisms. The common gaps include securing human resource and capability, understanding data requirements and management, and creating evolution in governance and controls that are fit for purpose.

Therefore, recognizing organizations’ needs and level of maturity is crucial to defining priorities and determining the next steps. The report identifies a common set of capabilities required to build an effective sustainability reporting model: leadership, operating mode, governance, and data. In each aspect, the role and perspective of CFOs are essential to forge a clear path to meet the obligations and standards.

Furthermore, beyond compliance, CFOs can leverage sustainability data and insight to drive better business decisions and create value for shareholders, employees, customers, and the environment.

Accelerating Responsibility & Driving Values

Businesses are key actors in accelerating sustainable changes and halting environmental degradation. This means they must shift focus from business-as-usual to responsible and sustainable practices. 

Therefore, organizations require strong and committed leadership to not only treat sustainability reporting as mere compliance but also leverage it to create value for organizations and stakeholders. Deloitte’s reporting series shows how corporate leaders, such as Chief Financial Officers, can take charge at this critical point to grow their businesses and create meaningful change for people and the planet at the same time.

Editor: Nazalea Kusuma

Kresentia Madina

Reporter at Green Network Asia | Website |  + postsBio

Madina is the Assistant Manager of Stakeholder Engagement at Green Network Asia. She holds a bachelor’s degree in English Studies from Universitas Indonesia. As part of the GNA In-House Team, she supports the organization's multi-stakeholder engagement across international organizations, governments, businesses, civil society, and grassroots communities through digital publications, events, capacity building, and research.

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