Post by bonnasuttadhar225588 on Feb 15, 2024 7:09:04 GMT
The use of environmental, social and governance (ESG) criteria has become a priority for investors and other stakeholders in the analysis process to identify material risks and growth opportunities for companies in the that is reversed. That said, by adopting ESG, companies are agreeing to prioritize planet- and people-focused initiatives that add value to corporate reputation . However, implementing ESG requires aligning business objectives, including how its performance is measured, with broader imperatives related to sustainability , such as growth, development, and social and environmental well-being. Understanding the role of the CFO… Before continuing, let's briefly clarify that CFO ( Chief Financial Officer ) is the corporate title of the person responsible for managing the company's financial strategy and operations, also known as chief financial officer. The CFO reports directly to the CEO (Chief Executive Officer) or executive director of a company, and has a substantial involvement in the investments, capital structure, money management and long-term business strategy of the company.
The CFO's duties include financial planning, financial risk management, tracking cash flow and expenses, handling investment and tax issues, creating and enforcing internal financial and accounting policies, collecting and managing of financial data, reporting financial performance to the board and helping to develop the company's Timor Leste Email List that ESG for business growth is key. In large part it is because environmental, social and governance criteria are connected in almost every aspect of operations. From manufacturing to sales, marketing and even R&D (innovation and development), ESG reflects the potential to impact the top line, and now also involves the cost of budgetary resources, an area that involves the CFO. esg-is-profitable-for-business- ESG for business growth The intersection of the CFO and his team with ESG is logical and is reflected in all sectors. According to an EY survey of global sustainability executives, 65% of respondents said that “their CFO has been involved in sustainability.” It is relevant to approach this relationship from another context, such as the intangible value that ESG gives to a corporate brand.
Often this value exceeds what the financial statements reveal. In fact, up to 80% of a company's valuation constitutes the value of its intangible assets. Historically, finance professionals have strived to systematically account for and integrate non-financial value into financial reporting, but this is changing as more companies have begun to include the evaluation of non-financial performance in their strategic reviews. , in line with its ESG objectives. In addition to the above, with regulations on the horizon to make ESG evaluation mandatory, CFOs can take advantage of ESG for business growth. The US is strongly pushing to make the disclosure of ESG reports mandatory, while in the United Kingdom, which has strongly led the zero emissions goal, the presentation of environmental-related reports is already a mandatory requirement, it has even been expanded in 2022 include other sustainability issues, such as human rights, anti-corruption and social issues.