Navigating CSRD: The Important Role of CFO’s in the Sustainability Transition

In our latest webinar, "Sustainability Competence in the Board Room" one of the topics was discussing the evolving role of CFO’s in the sustainability transition. One of our spotlight stories came from Thomas Bergström, the forward-thinking CFO of Sortera, an environmental company, enabling a more circular construction sector and a valued customer of SustainLab. Thomas shared rich insights on guiding sustainability efforts in the role as a CFO, particularly through the lens of the Corporate Sustainability Reporting Directive (CSRD). This article extends the dialogue from our webinar, exploring the important role of CFO's in the sustainability transition, with a special focus on their responsibilities under the CSRD.

"Sustainability is part of our job description now, and there's only one direction: forward" 

The Role of the CFO in the sustainability transition

"Sustainability is part of our job description now, and there's only one direction: forward," said Thomas, stressing the immediate need for sustainability to be a key part of financial roles. Gone are the days when CFO’s were just about numbers. Now, they're stepping up as leaders, blending environmental, social, and governance (ESG) considerations right into the heart of corporate strategies. This shift is more than just a trend; it's a rethink of how sustainability fits into the bigger business planning and decision-making picture. Thomas shared a compelling example from Sortera, illustrating how their finance team reshaped investment strategies to prioritize green initiatives, showcasing the tangible impact of this paradigm shift.

"It's about making our roles much more interesting and integral to the business strategy" 

Why is the CFO important?

CFO’s are crucial in painting the big picture of sustainability for their companies. They know the ins and outs of managing finances and aligning financial goals with sustainability actions. "It's about making our roles much more interesting and integral to the business strategy," Thomas noted, highlighting the unique position CFO’s hold in driving sustainability from the spreadsheet to the strategy room. They can play a key role in making the case for sustainability investments, not just within the company but to the world outside, thus solidifying the company's commitment to growing sustainably.

CFO relating to CSRD: Responsibilities

The CSRD brings a new dimension to the CFO's responsibilities, demanding a more nuanced and comprehensive approach to sustainability reporting. This regulatory framework necessitates meticulously articulating sustainability practices, impacts, and outcomes in financial reports. For CFO's, this means not just ensuring compliance but leveraging the CSRD as a strategic tool to enhance their organization's sustainability profile. Thomas pointed out essential focus areas like "ensuring the quality of reporting, integrating sustainability into financial planning, and communicating these strategies effectively," underscoring the critical role CFO's play in making CSRD work for their organizations.

"For those of us in finance, it’s time to adapt, embrace this shift, and recognize the invaluable role we play in steering our companies towards a sustainable future”

Conclusion

Embedding sustainability into the core of business strategy is complex yet rewarding, with CFO's playing a crucial role in this transition. As we move closer to the implementation of the CSRD, it's clear that the CFO's role will be more critical than ever. Their ability to integrate sustainability with financial performance will not only ensure compliance but also drive innovation and resilience in a changing business landscape. Thomas's insights from the webinar highlights the proactive stance CFO's must take: "For those of us in finance, it’s time to adapt, embrace this shift, and recognize the invaluable role we play in steering our companies towards a sustainable future. It’s a challenge, but also a remarkable opportunity to contribute to something meaningful, beyond the bottom line.”

At SustainLab, we're passionate about empowering companies to make impactful, data-driven sustainability decisions. Our platform is designed to make the complex simple, turning sustainability into an integral part of your business’s success story.

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