CFOs might be who organisations need to take ESG to new heights

IT’S NOT surprising to expect organisations to incorporate some form of ESG concept into their business plans. The constant chatter around achieving carbon neutrality or doing more to improve our society is becoming louder and more urgent.

However, the reality is there are businesses that beg to differ. A NTUC LearningHub report saw only 24 per cent of business leaders in Singapore mention that their organisations have already undertaken sustainability initiatives. Aside from insufficient budget, this lack of urgency is also due to a lack of clarity as to who should spearhead a company’s sustainability efforts. Some 39 per cent believe it should be a C-suite responsibility while 59 per cent saw it as that of a sustainability committee.

While it might seem natural to assume that the C-suite or an ESG committee should spearhead ESG efforts, business leaders today recognise that ESG impacts financial performance and resilience, positioning it in the domain of the chief financial officer. Thus we see the rise of the CFO’s role in shaping and leading the ESG agenda, working with fellow leaders to foster cross-team collaboration.