BDO USA: CFOs Continue to Invest in Sustainability, Focusing on Business Strategy
Three-quarters of CFOs expect their companies to maintain or expand sustainable investments despite the recent U.S. elections. The focus of these investments is shifting toward initiatives that align with stakeholder expectations and operational business activities, according to a new U.S.-focused survey by accounting and advisory firm BDO.
For the 2025 CFO Sustainability Outlook Survey, BDO surveyed 500 CFOs from companies with revenues ranging from less than $250 million to over $3 billion. The respondents represent industries such as healthcare, life sciences, manufacturing, retail, and technology, with 81% operating exclusively in the U.S. The survey was conducted after the recent U.S. presidential elections.
The results indicate that sustainability remains a growing priority in corporate strategy, even with a newly elected administration that opposes many ESG initiatives. Notably, 44% of CFOs expect to increase their sustainability investments—twice as many as those who anticipate a decrease—while 33% foresee no change.
CFOs planning to increase their investments report that sustainability initiatives have already delivered significant benefits. The top advantages cited over the past five years include:
- Greater innovation and new business opportunities (37%)
- Higher revenues (36%)
- Improved access to financing and investment opportunities (34%)
- Cost savings (30%)
- Increased customer loyalty (30%)
Additionally, CFOs increasingly view sustainability as a component of risk management. ESG risks were cited as a major concern by 45% of respondents, following operational risks (48%) and product or service risks (46%).
While CFOs recognize the opportunities and risks associated with sustainability, the survey suggests that many companies are still in the early stages of integrating ESG into their strategies. Only 21% of CFOs reported that their company is actively working to integrate sustainability into its corporate strategy. In contrast, 40% focus primarily on meeting stakeholder expectations, while another 40% concentrate on regulatory compliance.
However, companies that integrate sustainability into their strategy expect significant advantages. Among these firms, 91% anticipate revenue growth in 2025, compared to 74% of other respondents. Additionally, 69% expect increased profitability, versus 56% of the other companies.
Shifting Focus in Sustainable Investments
While sustainability investment plans remain strong, the focus is shifting toward operational and stakeholder-driven initiatives. Only 22% of CFOs plan to invest in reducing their carbon footprint in 2025, while 26% intend to invest in climate adaptation and another 26% in diversity, equity, and inclusion (DEI). In contrast, 40% are prioritizing employee health and well-being, 39% are focusing on sustainable product development, and 34% are investing in sustainable supply chain management.
Sustainability Remains a Strategic Priority
The survey also highlights the growing role of sustainability in financial strategy. A full 80% of CFOs expect their involvement in ESG strategies to either increase or remain the same over the next 12 months.
Karen Baum, Managing Principal of the Sustainability & ESG Center of Excellence at BDO USA, stated:
"A sustainable business is stronger, better aligned with stakeholder expectations, and more resilient in economically challenging times. By embedding sustainability into core strategy, companies create growth opportunities and protect themselves against shifting market conditions."
