CFO's role in ESG management - leader, integrator, strategist

ESG is not just about reporting - it's about changing the way we think about risk, value and competitive advantage. The role of the CFO in this process is becoming absolutely crucial. He is the one who connects the world of data, strategy and finance with the growing social and environmental demands.

1. The CFO as the owner of the company's ESG processes

In many organizations, it is the CFO who assumes responsibility for developing and implementing the ESG framework - both in the area of reporting and the integration of ESG goals into strategic planning.

It is he who:

• determines the scope of materiality - for example, through dialogue with stakeholders, analysis of ESG risks and opportunities, and materiality workshops with management,
• oversees the collection of ESG data - implementing IT systems for managing non-financial data (e.g., ESG data management class systems),
• ensures their quality and consistency - using control procedures similar to those used in financial reporting,
• is responsible for external reporting according to ESRS standards - including coordinating the reporting process in the spirit of dual materiality.

More and more CFOs are implementing an integrated reporting approach, in which ESG is not a separate add-on, but part of a holistic view of the company's capitals (human, social, natural, intellectual).

2. New areas of responsibility

The role of the CFO is expanding significantly - it is no longer limited to hard financial data, but also includes analyzing the impact of ESG on the long-term value of the company.

The CFO must understand:

• climate and social risks - e.g. the impact of regulatory changes (CBAM, EU ETS), physical climate risks or supply chain risks,
• investor and customer expectations - e.g., sustainable investment requirements (SFDR, EU Taxonomy),
• eSG's impact on the value of the company - not only through costs, but also new revenue streams, reputation and customer loyalty.

In addition, the CFO participates in:

• working with ESG auditors - preparing the company for an external audit in accordance with the CSRD,
• managing non-financial risks - for example, by including ESG in the corporate risk matrix,
• oversight of qualitative and quantitative data - implementing internal control procedures for ESG data.

It is worth considering creating the role of ESG Controller reporting directly to the CFO - as analytical and control support.

3. Cross-departmental cooperation

ESG cannot be implemented alone. The CFO, by virtue of his or her position in the organization, has the unique ability to connect different functions and departments.

Key areas of cooperation are:

• HR - reporting on DEI (diversity, equity, inclusion) indicators, turnover, employee satisfaction,
• Operations departments - data on energy consumption, emissions, waste, process efficiency,
• Legal and compliance departments - analysis of legal risks and compliance with national and EU regulations,
• Management and Supervisory Board - translation of ESG data into the language of strategic risks and opportunities.

establishment of an ESG Committee with the CFO as chairman - will create a place for systematic management of ESG topics and joint decision-making.

4. Leader of cultural change

The CFO is no longer just a "budget watchdog" - becomes a change leader and ESG ambassador within the organization. He is the one who can translate complex ESG requirements into concrete actions and business decisions.

His role is:

• building ESG awareness among management - e.g., through training, presentations to the board, mapping ESG impacts on KPIs,
• presenting ESG data in an understandable and useful way - creating dashboards showing how ESG impacts financial performance,
• linking reporting to long-term value - ESG as a tool for competitive advantage, e.g., in raising financing (green bonds, sustainability-linked loans).

The CFO of the future is a sustainability leader

The modern CFO not only counts, but also inspires. He is a strategic partner in ESG transformation. His key tasks are:

• Integrating ESG into financial planning - e.g., incorporating CO₂ costs into investment models,
• Building credibility with investors and stakeholders - through transparent and credible reporting,
• Managing non-financial data - including implementing IT tools to collect, validate and analyze ESG data,
• Fostering a culture of responsibility and innovation - by funding green transformation projects,
• Leading the company through regulatory and climate change - ahead of time, instead of reactively.

The CFO of the future is a leader with a vision who bridges the world of finance and ESG. He is not just a technocrat, but a strategist and integrator - essential for any organization that thinks about sustainability seriously.