77% CFOs Plan To Increase Sustainability Investments

A new survey by BDO USA shows the increasing relevance of sustainability to corporate strategy, with 77% of Chief Financial Officers (CFOs) expecting to sustain or boost their investments in sustainability in 2025. The 2025 CFO Sustainability Outlook Survey, which received input from 500 CFOs in industries ranging from life sciences, healthcare, and manufacturing to retail and technology, emphasizes the financial and strategic advantages of sustainability integration. As businesses step past regulatory compliance and stakeholder pressures, they are discovering that infusing sustainability into their core business models results in rising revenues, greater profitability, and greater market resilience.

In the survey, 91% of those businesses that have integrated sustainability comprehensively into their operations expect revenue growth in 2025. This percentage far exceeds the 74% of all surveyed businesses that report expecting revenue increases, marking the competitive edge of sustainable businesses. Moreover, 69% of businesses that have deeply ingrained sustainability programs expect increased profitability compared to 56% of all respondents. These figures indicate that sustainability is no longer merely an ethical or regulatory requirement but a financial and strategic necessity.

Karen Baum, Managing Principal at BDO USA's Sustainability & ESG Center of Excellence, highlighted the ability of sustainability to transform. "A sustainable company is more robust, more sensitive to stakeholder demands, and more resilient in the face of economic headwinds," she said. Companies that take the initiative to build sustainability into the core strategy benefit not only by opening up innovation growth possibilities but also by creating buffers against changing market trends, regulatory environments, and economic instability.

The CFOs' role in defining sustainability strategy has grown more crucial. The survey discovered that 47% of CFOs intend to increase their engagement in sustainability efforts this year, acknowledging their essential role in reconciling financial and ESG objectives. In addition, 80% of CFOs anticipate maintaining or increasing their involvement in ESG strategy in 2025. This signals an even wider shift in business leadership, whereby financial decision-makers are assuming a leading role in sustainability investments, reporting, and long-term planning.

As the regulatory environment continues to shift, companies are gearing up for increased transparency needs and strategic alignment, especially due to strict European ESG requirements. The pressure for increased disclosure and accountability is compelling U.S. firms to adjust and embrace sustainability more holistically. This transformation highlights the need for CFOs not only as financial guardians but as key drivers of corporate sustainability initiatives.

In the future, the need for CFOs to incorporate sustainability into their financial decision-making is likely to increase, with 61% of those already involved in sustainability integration expecting more demands on their time. The increasing overlap between sustainability and finance indicates that ESG considerations will become an integral part of financial reporting and strategic planning.

The survey results follow overall industry trends. Another Deloitte study found that 79% of agrifood CEOs cited revenue growth attributable directly to their investments in sustainability. These findings support the notion that sustainability is not a regulatory necessity but a driver of growth and profitability across industries.