CFOs Maintain Sustainability Focus Despite Election Shift

Even with the recent U.S. presidential election bringing forth an administration seen as less favorable to ESG efforts, corporate sustainability expenditures are strong, with the majority of Chief Financial Officers (CFOs) anticipating to continue or expand their emphasis on sustainability-related activities. Yet, investment priorities are increasingly shifting, as firms are aligning their sustainability agendas with stakeholder demands and business practices instead of environmental and social responsibility.

These findings come from the 2025 CFO Sustainability Outlook Survey, which was administered by accounting and consulting firm BDO USA. The survey solicited input from 500 CFOs in several industries, including healthcare, life sciences, manufacturing, retail, and technology, from companies that generate revenues ranging from less than $250 million to more than $3 billion. Of note, 81% of the companies surveyed have only domestic operations within the United States.

Findings reveal that corporate sustainability plans are resilient in the face of possible policy changes in the new administration. 44% of CFOs anticipate greater sustainability investment, twice as many as those planning reductions, while 33% anticipate no change. The commitment to sustainability results from the substantial business value these initiatives have thus far delivered. In the last five years, CFOs have seen a variety of benefits from sustainability initiatives, such as more innovation and new business possibilities (37%), higher revenues (36%), easier access to financing and investment (34%), cost reduction (30%), and increased customer loyalty (30%).

In addition to monetary returns, CFOs also see sustainability as a significant component of risk management. ESG-related risks are now one of the top three priorities for CFOs, with 45% of the respondents naming ESG risk as a major challenge. This is narrowly behind operational risk (48%) and product/service risk (46%), and shows how critical sustainability has become to corporate decision-making.

Although there is a clear vision of sustainability's potential, the majority of companies are still in the nascent stages of mainstreaming sustainability into their core business models. Only 21% of CFOs indicated actively pursuing the integration of sustainability into their overall business strategy. Rather, 40% acknowledged that their existing sustainability initiatives are largely motivated by stakeholder pressures, and another 40% aim for regulatory compliance.

But the survey indicates that more integration of sustainability can bring significant business benefits. 91% of firms with integrated approaches to embedding sustainability expect higher revenue in 2025, versus 74% of firms with less integrated strategies. 69% of these firms also expect higher profitability, well ahead of the 56% seen by their counterparts who have not yet integrated sustainability into business operations.

Although investment in sustainability is robust, the areas of priority are evolving. The traditional environmental and social causes like reduction of carbon footprints (22%), climate change mitigation (26%), and Diversity, Equity, and Inclusion (DEI) initiatives (26%) are getting lesser importance in 2025. Instead, CFOs are giving high priority to projects that have a direct operational and stakeholder effect. Staff health and well-being has been a standout area, with 40% of CFOs intending to address it. In the same vein, sustainable product development (39%) and sustainable supply chain management (34%) are on the rise as businesses look to minimize waste while holding on to long-term environmental commitments.

Another important takeaway from the report is the increasing CFO role in sustainability leadership. 80% of CFOs anticipate their contribution to ESG strategy to remain stable or increase over the next 12 months. This highlights the changing view of sustainability from a peripheral corporate program to a central business strategy that needs financial leadership and direction.

Karen Baum, Managing Principal of BDO USA's Sustainability & ESG Center of Excellence, underscored the need to integrate sustainability into business. She said:

A sustainable business is better positioned, more attuned to stakeholder demands, and more resistant to economic headwinds. By taking sustainability out of the sidelines and putting it into core business strategy, companies build a strong offense –– unlocking new growth avenues while countering changing market conditions.

The survey results capture a larger trend in corporate America: though political changes might have an impact on ESG policies and regulatory policies, companies still see sustainability as a vital growth driver, risk mitigator, and source of competitive edge. With CFOs taking a more central role in determining sustainability strategy, companies will likely shift their approach, emphasizing operational efficiencies and stakeholder-directed initiatives over environmental and social performance alone.

As companies continue to navigate a more complicated business environment, the incorporation of sustainability into corporate strategy is not only a moral obligation but also a financial and strategic imperative. The survey indicates that companies that actively integrate sustainability into long-term planning will be the ones to succeed in an ever-changing market.