EY: "Investors and CFOs are demanding much more reliable and verifiable ESG information."

EY research shows that investors and CFOs are increasingly skeptical about the reliability of sustainability claims and non-financial reporting due to concerns over greenwashing.

New research from EY reveals that trust in non-financial reporting is being undermined by rising perceptions of greenwashing. CFOs should act proactively to understand investor expectations, review non-financial reports, and integrate sustainability into financial decision-making.

For investors, predicting the future is becoming increasingly challenging. Rapid technological adoption and systemic risks, such as climate change, create significant uncertainty. Identifying companies that can withstand volatility while delivering sustainable performance is more challenging than ever.

In these uncertain times, investors need clear narratives about how organizations will create long-term value and fulfill their commitments. CFOs play a crucial role in shaping these narratives. By providing structured insights that set their companies apart, CFOs can demonstrate how they plan to balance short-term challenges with long-term goals.

The "Age of And" calls for balancing challenges

This is especially relevant in what is known as the "Age of And"—a time when there is no choice but to tackle multiple challenges simultaneously. In this context, CFOs must clarify how the company will achieve sustainable long-term performance while managing short-term volatility. They must confidently allocate capital toward long-term growth drivers, from artificial intelligence (AI) to sustainability, while also meeting short-term expectations.

By addressing these challenges simultaneously and confidently, CFOs can position themselves as reliable, strategic partners for the CEO and the board.

Click here for the full EY report.