Companies in the U.S. are set to maintain or increase their sustainability investments despite changes in political leadership, according to a recent survey. However, the survey indicates a shift in focus, with businesses prioritizing stakeholder expectations and operational impact over environmental and social initiatives. The findings suggest that sustainability remains a key concern for financial leaders, not only from a corporate responsibility perspective but also as a driver of business growth and risk management.
Earlier reports on corporate sustainability investment trends have highlighted a steady commitment to ESG initiatives, yet the focus areas have evolved over time. While past surveys showed an emphasis on environmental and social impact, the latest findings indicate a reallocation towards aspects with direct business implications. Financial executives have consistently cited innovation, revenue growth, and cost savings as key benefits of sustainability strategies, reinforcing the idea that these investments are not merely ethical choices but also strategic business decisions.
How Are CFOs Prioritizing Their Sustainability Investments?
A survey of 500 CFOs across industries such as healthcare, technology, retail, and manufacturing revealed that 44% plan to increase spending on sustainability initiatives, while 33% foresee maintaining their current investment levels. The shift in priorities is evident, with fewer companies focusing on carbon footprint reduction and climate change mitigation, and more emphasizing employee well-being, sustainable product development, and supply chain sustainability. These areas are seen as having more direct operational benefits, aligning with broader business objectives.
What Role Does Risk Management Play in Sustainability Strategies?
Risk management is a significant factor in sustainability investment decisions, with ESG risks ranking among the top concerns for CFOs. Operational risks and product or service risks remain slightly higher priorities, but sustainability-related risks are increasingly being recognized as critical. Many financial executives view sustainability efforts as necessary to safeguard long-term business stability, customer trust, and financial viability. Despite this recognition, only a minority of companies have fully integrated sustainability into their core business strategies.
The survey found that companies embedding sustainability into their overall business strategy anticipate stronger financial outcomes. Among these businesses, 91% expect revenue growth in 2025, compared to 74% of companies with a more limited sustainability approach. Similarly, 69% of companies integrating sustainability expect increased profitability, exceeding the 56% of their counterparts who have yet to take similar steps. These findings highlight the financial advantages of a more embedded and strategic approach to sustainability.
Despite continued investment, a significant portion of respondents (40%) indicated that their sustainability efforts primarily address stakeholder expectations, while another 40% focus on regulatory compliance. This suggests that many businesses still see sustainability as a response to external pressures rather than a fully integrated business strategy. However, financial leaders anticipate a growing role in ESG planning, with 80% expecting their involvement in sustainability strategy to increase or remain steady over the next year.
Karen Baum, Managing Principal, Sustainability & ESG Center of Excellence at BDO USA, stated:
“A sustainable business is stronger, more responsive to stakeholder expectations, and more resilient to economic headwinds. When businesses move sustainability off the sidelines and integrate it into core business strategy, they create a strong offense –– unlocking innovative growth pathways while defending against shifting market conditions.”
As sustainability remains a priority for CFOs, the shift away from environmental and social initiatives towards more immediate business concerns reflects a broader trend in corporate sustainability planning. Businesses now focus on areas that provide direct operational benefits rather than long-term environmental commitments. This recalibration suggests that while sustainability remains essential, its role within corporate strategy is evolving to align with financial and operational goals rather than purely ethical or regulatory motivations. Companies that successfully balance sustainability with business performance may achieve long-term stability, while those that treat it as a secondary concern risk losing competitive advantages. Financial leaders will likely continue to refine their sustainability approaches as new challenges and opportunities emerge.
