Has Sustainability Found Its Natural Home in the CFO’s Office?

Whether sustainability has truly found its “natural home” in the Chief Financial Officer’s (CFO) office is still debated, but few would question the direction of travel. As regulation tightens and investors demand credible ESG performance, the CFO has stepped into a leading role — bringing financial discipline, data integrity and strategic oversight to an agenda once seen as purely ethical. Over the past decade, the relationship between finance and sustainability has evolved from distant to interdependent. Yet progress relies on partnership: while the CFO anchors accountability and reporting, the Chief Sustainability Officer (CSO) ensures purpose, culture and delivery are embedded across the business.

The CFO’s Expanding Role in Sustainability and ESG Reporting

The rapid rise of mandatory, auditable ESG frameworks such as the EU Corporate Sustainability Reporting Directive (CSRD) has brought sustainability firmly under the finance remit. Few functions are better equipped to manage the complexity of data and assurance these regulations demand. Finance teams already operate the systems and controls needed for reliable, audit-ready data, now being extended to environmental and social metrics. This convergence makes the CFO’s oversight essential, ensuring sustainability reporting carries the same rigour and credibility as financial disclosure.

How CFOs Are Driving Sustainable Value Creation

Sustainability has become a driver of long-term business value rather than a reputational exercise. As a result, CFOs are increasingly acting as Chief Value Officers — linking financial performance with social and environmental outcomes. They are directing capital towards low-carbon innovation, technology, and supply-chain resilience, while assessing the cost of inaction on both reputation and regulation. By embedding sustainability into investment and risk decisions, CFOs are helping to translate ambition into measurable returns.

The Power of CFO and CSO Collaboration in Sustainability

While reporting may sit in finance, sustainability cannot thrive in isolation. The CFO and CSO must work hand in hand — one providing structure, the other shaping culture and execution. Together, they ensure sustainability is not only measured but managed, combining financial rigour with operational insight. In many organisations, this partnership is proving the key to turning ESG goals into tangible business outcomes.

The Road Ahead for CFOs Leading on Sustainability

Challenges remain. Many CFOs still view sustainability through a cost lens, constrained by short-term reporting cycles. Bridging the gap between immediate financial pressures and long-term ambition demands both cultural change and new capabilities. But the direction is clear: sustainability’s reporting and financial integration have found their natural home in the CFO’s office. The finance function brings the discipline and credibility needed for impact — and, working alongside the CSO, can transform sustainability from a compliance requirement into a source of enduring value.

At Hanson Search, we specialise in recruiting world-class sustainability and clean technology professionals across the globe. Whether you’re building out an ESG team, hiring a Chief Sustainability Officer, or looking for technical expertise in climate innovation, our expert consultants can help. Get in touch today to speak with a member of our team about how we can support your sustainability hiring goals.

Johnny Goldsmith leads the global Sustainability & ESG practice at Hanson Search.

Hanson Search is a globally recognised, award-winning talent advisory and headhunting consultancy. Our expertise lies in building successful ventures worldwide through our recruitment, interim and executive search in communications, sustainability, public affairs and policy, digital marketing, and sales.