2025 CFO Sustainability Outlook outcomes: What comes next for Sustainability?

Late last year, BDO USA conducted a comprehensive survey of 500 Chief Financial Officers (CFOs) from the life sciences, healthcare, manufacturing, retail, and technology industries, with revenues ranging from approx. $250 million to over $3 billion. This survey conducted in November 2024 following the U.S. presidential election, explores the perspectives of CFOs on sustainability and their outlook for 2025.

This article highlights the key findings and outcomes of the survey on how financial leaders are navigating ESG criteria and sustainability initiatives.

Sustainability remains a top priority for CFOs

CFOs are leading a pivotal shift in corporate sustainability. While many still approach sustainability as a separate initiative aimed at meeting stakeholder demands, a growing number of CFOs are recognising the strategic value of integrating sustainability into their core business operations.

In 2025, organisations are moving beyond short-term successes to achieve long-term competitive advantages through their sustainability initiatives. With benefits such as new growth opportunities and increased market resilience, it’s no wonder that 47 per cent of CFOs plan to increase their involvement in sustainability strategy over the next year.

The most successful organisations will embed sustainability into their core business strategies, reaping the greatest rewards from their continued focus and investment.

Highlights at a high level


91 percent

of organisations that are integrating 
sustainability into their business strategies expect increased revenue in 2025.


80 percent

expect their involvement in ESG strategy 
to either stay the same or increase in 
the net 12 months.


77 percent

plan to maintain or increase their 
sustainability investments this year.

Business benefits from sustainability initiatives

Organisations are increasingly recognising numerous advantages of integrating sustainability into their core strategies. CFOs have reported a range of benefits that enhance their financial performance and strengthen their market position and operational resilience.

Some of the key benefits identified include:

Increased innovation and new business opportunities37%
Increase in revenue36%
Access to favourable financing or investment opportunities34%
Improved risk management32%
Broader risk considerations inform decision-making31%
Enhanced customer loyalty30%
Cost savings30%
Attraction and retention of talent28%
Access to new markets27%
Reduced environmental impact/carbon footprint23%

Source: 2025 CFO Sustainability Outlook Survey (page 4)

Key insights on sustainable business practices

To maximise the return on investment from sustainability initiatives, CFOs should consider the following actions:

  1. Identify sector-specific opportunities: The impact of sustainability initiatives can differ significantly across sectors. Benchmark against industry peers to pinpoint the most relevant and achievable benefits for your organisation. Once identified, develop targeted initiatives to capture these opportunities.
  2. Balance short- and long-term priorities: A robust sustainability strategy should deliver immediate operational improvements while also setting the groundwork for long-term transformation. Design your roadmap to achieve quick wins while systematically progressing towards both financial and non-financial long-term objectives.
  3. Turn risks into opportunities: ESG risks are closely linked with other business risks and can highlight inefficiencies or gaps that drive innovation. Use materiality assessments to prioritise key risks and uncover strategic opportunities for growth.

Sustainability as a growth driver

Most organisations are actively implementing sustainability strategies motivated by compliance (30 per cent) and stakeholder demands (40 per cent). As they do so, businesses must maintain an agile approach to adapt to potential shifts in sustainability-related external pressures and regulatory policies. Meanwhile, 9 per cent are still in the evaluation phase, and none have fully embedded mature sustainability operations into the business operations.

Source: 2025 CFO Sustainability Outlook Survey (page 8)

Key insights on the current state of sustainability strategy

Organisations are under increasing pressure to comply with ESG regulations and meet stakeholder expectations. However, there remains a significant gap between reactive measures and fully integrated sustainability strategies. To address these challenges and enhance sustainability maturity, CFOs should consider the following steps:

  1. Avoid siloing sustainability efforts: Treating sustainability as a separate initiative can create inefficiencies in risk management and limit opportunities for innovation. By embedding sustainability across all aspects of the business, organisations can unlock greater value and respond more effectively to shifting stakeholder demands.
  2. Align strategy integration with ROI: Focus on areas that offer the best impact-to-effort ratio, considering both ESG factors and business outcomes. The key is to identify where sustainability can drive economic and operational benefits while also fulfilling stakeholder expectations for responsible practices.
  3. Be ready for more disclosures, regardless of operational scope: ESG disclosures will face increasing scrutiny from global regulators, and local authorities. Businesses will need to comply with local regulations, and transparent reporting will likely be a key factor in accessing sustainable financing.

Other resources to support you

Engaging your people in your sustainability efforts is crucial for driving impactful change within your organisation. Our Sustainability activation checklist is perfect for those starting their journey or for reviewing whether you’re on the right track.

Where are businesses focusing their sustainability efforts in 2025?

The graph below illustrates where businesses plan to concentrate their sustainability and ESG efforts in 2025, reflecting the top strategic concerns within each industry. For instance, CFOs in the tech sector are prioritising sustainable supply chain management, a critical challenge heightened by rising CO2 emissions at data centres, in part driven by the increasing use of AI technologies.

Employee health and wellbeing40%
Sustainable product development39%
Cost reduction35%
Sustainable supply chain management34%
Materials use efficiency31%
Workplace safety28%
Climate change mitigation26%
Diversity, equity, and inclusion26%
Corporate governance23%
Carbon footprint reduction22%

Source: 2025 CFO Sustainability Outlook Survey (page 13)

Summary of the 2025 outlook

Companies embracing sustainability are seeing more growth potential—91 per cent expect revenue growth, compared to 74 per cent of others and 69 per cent expect increased profitability compared to 56 per cent of others. This highlights how sustainability maturity could be a major competitive edge.

Looking ahead, businesses need to shift their mindset. Top companies are treating sustainability metrics as seriously as financial metrics. CFOs are making sure sustainability is part of risk management, revenue generation, and strategic planning. This approach helps create strategies that align sustainability with business goals. Starting this shift now is key to long-term success and resilience.

Support for your sustainability goals 

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Aletta Boshoff

National Leader, IFRS & Corporate Reporting
National Leader, Sustainability
Partner, Advisory
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