A recent BDO survey indicates that despite a new U.S. administration’s stance on ESG initiatives, over 75% of CFOs intend to sustain or boost sustainability investments, shifting focus toward operational efficiency and stakeholder expectations.
A recent survey by accounting and advisory firm BDO reveals that more than 75% of Chief Financial Officers (CFOs) plan to maintain or increase their companies’ sustainability investments following the recent U.S. presidential election. This trend persists despite the election of an administration less supportive of Environmental, Social, and Governance (ESG) initiatives.
Survey Overview
The 2025 CFO Sustainability Outlook Survey, conducted by BDO, surveyed 500 CFOs from companies across various sectors, including healthcare, life sciences, manufacturing, retail, and technology. The companies surveyed had revenues ranging from under $250 million to over $3 billion, with 81% of respondents representing U.S.-based companies. The survey was conducted after the recent U.S. presidential election.
Key Findings
- Sustainability Investment Plans: Despite the election outcome, 44% of CFOs anticipate increasing sustainability investments, while 33% expect no change, and only 22% plan to decrease their investments.
- Benefits of Sustainability Initiatives: Over the past five years, CFOs have reported significant benefits from sustainability initiatives, including increased innovation and new business opportunities (37%), increased revenue (36%), access to favorable financing or investment opportunities (34%), cost savings (30%), and enhanced customer loyalty (30%).
- Risk Management Focus: ESG risk is identified as a significant concern by 45% of CFOs, ranking third after operational risk (48%) and product/service risk (46%).
- Sustainability Integration: Only 21% of companies are integrating sustainability initiatives into their business strategy, while 40% focus on addressing stakeholder expectations, and another 40% prioritize regulatory compliance.
- Future Focus Areas: In 2025, CFOs plan to focus on employee health and well-being (40%), sustainable product development (39%), and sustainable supply chain management (34%), with less emphasis on carbon footprint reduction (22%), climate change mitigation (26%), and diversity, equity, and inclusion (DEI) (26%).
Strategic Implications
The survey indicates a strategic shift among CFOs, emphasizing operational efficiency and stakeholder expectations over traditional environmental and social initiatives. This approach reflects a pragmatic response to the current political climate, aiming to align sustainability efforts with business operations and risk management.
Future Outlook
The survey also highlights that 80% of CFOs expect their involvement in ESG strategy to increase or remain the same in the next 12 months, indicating a sustained commitment to sustainability despite political changes.
In conclusion, the BDO survey underscores a robust commitment among CFOs to sustain or enhance sustainability investments, focusing on areas that align with operational efficiency and stakeholder expectations. This trend suggests that companies are integrating sustainability into core business strategies, viewing it as a driver of innovation and resilience in the face of evolving political and economic landscapes.