This report examines the changes, capabilities and tools that Chief Financial Officers (CFOs) and their teams need when supporting organisational transformation to become more sustainable and purpose-led. Boards of directors will play a key role in leading this effort. The key enablers that are needed to help Finance Functions adapt to this changing environment outlined in the report are:
- Sustainability knowledge and professional skills development supported by educational establishments and relevant professional bodies.
- Access to relevant data, particularly on Scope 3 emissions and social and ecosystem impacts.
Systems and software to enable the integration of sustainability and financial information. - Conceptual and technical developments to define methodologies and standards in specific accounting areas.
- Coherence of standards, regulations and frameworks globally to avoid Finance Functions spending all their resources keeping up to date with changing frameworks at the expense of driving sustainability improvements.
- Collaboration and sharing from leading companies of their learnings among each other and with those who follow, rather than each company having to start from scratch.
CFOs will play a critical role in this transformation process alongside other business functions. The report presents brief best-practice examples from leading companies, and outlines the vital importance of prompt action by CFOs to drive organisational change towards sustainability.
About the Publishers
The Cambridge Institute for Sustainability Leadership (CISL) is an impact-led institute within the University of Cambridge. The institute activates leadership globally to transform economies for people, nature and climate. Through their global network and hubs in Cambridge, Cape Town and Brussels, CISL works with leaders and innovators across business, finance and government to accelerate action for a sustainable future.
Accounting for Sustainability (A4S) aims to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy. A4S was established by HM King Charles III in 2004, when he was The Prince of Wales, 'to help ensure that we are not battling to meet 21st century challenges with, at best, 20th century decision-making and reporting systems'.
The lead author of this report is Richard Marshall (CFO of Great Yellow Ltd and a Fellow of the Chartered Institute of Management Accountants).
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