In boardrooms worldwide, sustainability has moved from a corporate social responsibility checkbox to a strategic business imperative. However, many sustainability professionals still struggle with how to talk to their CFO about sustainability in a way that resonates financially. A Deloitte survey found that while 78 percent of CFOs acknowledge the importance of sustainability, only 37 percent have integrated it into their financial planning and analysis processes.
This disconnect represents both a challenge and an opportunity. CFOs are uniquely positioned to drive sustainable transformation through capital allocation, financial planning, and risk management. But to enlist their support, you need to speak their language and address their priorities. Continue reading as we provide a practical roadmap for making the financial case for business sustainability strategies – showing how they can reduce risk, boost efficiency, and create long-term enterprise value in terms CFOs understand.Â
The business case for sustainability
Before approaching your CFO, it’s crucial to understand how to talk to your CFO about sustainability in clear financial terms. Here are the key components to include:
Cost reduction and operational efficiency
Companies implementing energy efficiency measures save between 20 and 30 percent on operational costs, according to Carbon Trust research. Colgate-Palmolive, for example, implemented comprehensive sustainability measures focusing on energy and water efficiency. By monitoring progress and adopting innovative solutions, the company achieved an estimated $800 million in utility cost savings.
When presenting cost savings:
- Focus on measurable results with trackable ROI
- Highlight both immediate and long-term savings
- Use examples from your industry or similar businesses
Access to capital and preferential financing
Capital markets are increasingly rewarding sustainability performance. Financial institutions now routinely offer preferential financing terms to companies that demonstrate strong Environmental, Social, and Governance (ESG) credentials.
For example, NatWest offers green loans with interest rates reduced by up to 1 percent for qualifying sustainable investments. Meanwhile, the green bond market has surged to over £87 billion in 2024, with investors accepting yields that are on average 15–25 basis points lower than traditional bonds due to strong demand for ESG-aligned assets.Â
Corporate financing is also evolving. SSE plc recently secured a £1.3 billion sustainability-linked loan, where the interest rate is tied directly to progress on its carbon reduction goals. This is part of a growing trend where financial incentives are now explicitly tied to ESG performance. For CFOs, this creates a direct financial rationale, in that sustainability is becoming a route to more affordable capital and improved investor sentiment.
Risk mitigation and resilience
Climate-related risks are imposing growing financial and operational pressures on businesses, even as regulatory momentum fluctuates. Beyond compliance, the physical impacts of climate change are becoming more costly. In 2023 alone, UK businesses filed £443 million in insurance claims related to extreme weather events such as flooding and storms – the highest figure on record. These figures highlight the growing urgency of embedding climate resilience into core business strategies.
Reputational risk is also escalating as consumers are increasingly willing to hold companies accountable for environmental misrepresentation. For instance, a recent survey found that 54 percent of consumers would stop purchasing from companies found guilty of greenwashing. In this current climate of radical transparency, brand trust can evaporate very quickly, and this has direct consequences for investor confidence and market share.Â
One company that has long understood the strategic value of sustainability is Marks & Spencer. Its Plan A programme, launched in 2007, helped the retailer achieve £185 million in efficiency savings by 2012 through risk reduction, operational improvements, and stakeholder engagement. The company’s early commitment to sustainability shows how businesses can mitigate risk while delivering measurable financial value.
Revenue growth and market opportunities
Sustainability is increasingly recognised as a key driver of business growth. According to NYU Stern’s Center for Sustainable Business, products marketed as sustainable achieved a 5-year compound annual growth rate (CAGR) of 12.4 percent, compared to 5.4 percent for conventionally marketed products.Â
These sustainable products now hold a 23.8 percent market share and contributed 41 percent of the total CPG market growth from 2013 to 2024. In B2B sectors, sustainability is also influencing procurement decisions. Research from Bain & Company shows that companies with strong sustainability credentials are winning contracts at a significantly higher rate, as ESG alignment becomes a key selection criterion for buyers and partners.Â
Consumer loyalty is also rising – brands perceived as sustainable enjoy stronger retention and engagement. One of the most compelling examples of this is Unilever’s Sustainable Living Brands, including household names like Dove and Hellmann’s. These brands have consistently grown 69 percent faster than the rest of the company’s portfolio, illustrating how purpose-driven, low-impact products can deliver outsized commercial returns.Â
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How to talk to your CFO about sustainability: A step-by-step guide
Below are the main steps you should follow when approaching your CFO to make the case for prioritising sustainability.Â
1. Do your financial homework
Before meeting with your CFO, prepare thoroughly:
- Benchmark competitors: Compare your company’s sustainability performance and associated financial metrics against sector peers. The FTSE4Good Index and similar sustainability indices provide valuable benchmarking data.
- Gather relevant data: Compile data on current resource usage, costs, and efficiency opportunities. Many companies begin with third-party energy or carbon assessments to identify opportunities.Â
- Calculate potential ROI: Develop clear projections for sustainability initiatives, including implementation costs, expected returns, and payback periods. Follow established accounting guidance for environmental impacts in financial projections.
2. Align with strategic priorities
Connect sustainability to existing business goals and concerns:
- Link to strategic objectives: Show how sustainability initiatives support current strategic priorities, whether cost reduction, brand differentiation, or market expansion.
- Focus on materiality: Prioritise sustainability issues with the greatest financial relevance to your specific business. The Sustainability Accounting Standards Board (SASB) materiality map provides sector-specific guidance.
- Address immediate pain points: Identify how sustainability initiatives can solve current financial challenges, such as rising energy costs or supply chain disruptions.
3. Speak the CFO’s language
One of the most effective strategies for how to talk to your CFO about sustainability is to translate environmental metrics into financial outcomes.
- Use financial metrics: Present sustainability in terms of financial metrics rather than environmental metrics alone.Â
- Quantify risks and opportunities: Express climate risks as financial exposures and sustainability opportunities as revenue potential.
- Present multiple scenarios: Develop best-case, most likely, and worst-case financial projections to demonstrate your analytical rigour.
4. Propose a phased approach
Most CFOs prefer incremental commitments:
- Start with quick wins: Begin with low-cost, high-return initiatives that demonstrate concept validity.Â
- Build a scaling roadmap: Present a clear progression from initial projects to comprehensive programmes.
- Establish clear milestones: Define specific financial and sustainability checkpoints to evaluate progress and adjust course.
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Common objections and how to overcome them
Here are some common objections you may encounter and how to overcome them.Â
“The upfront costs are too high”
Response strategy: Reframe the discussion from pure cost to investment return and highlight:
- Green financing options: Many national and regional banks have committed substantial funding to green infrastructure financing with preferential terms.
- Tax incentives: Look into tax incentives like capital allowances for energy-efficient equipment that offer significant tax benefits for qualifying investments.
- Grant opportunities: Government programmes like industrial energy transformation funds provide substantial grants for sustainability projects.
For example, Royal London Asset Management achieved a 708 percent ROI after using AI-powered technology to optimise HVAC systems across a 125,000-square-foot building, cutting energy use by 21 percent and extending equipment life by up to two years.Â
“The returns are too uncertain or long-term”
Response strategy: Break down returns into short, medium, and long-term horizons and emphasise:
- Immediate efficiency gains: Energy efficiency typically delivers returns within 6-24 months.
- Medium-term competitive advantage: Sustainability credentials help win contracts, with 68 percent of procurement teams now including sustainability criteria in supplier evaluations.
- Long-term risk reduction: Climate stress tests indicate companies with strong climate risk management could avoid value losses of 10-15 percent by 2050.
According to Kingfisher plc’s latest Responsible Business Report for 2023/24, Sustainable Home Products (SHPs) accounted for £6.4 billion in sales, representing 49.4 percent of the company’s total sales.
“We need to focus on core business priorities first”
Response strategy: Position sustainability as fundamental to core business success by highlighting:
- Customer expectations: 72 percent of consumers consider sustainability important in purchasing decisions, with 42 percent willing to pay a premium for sustainable products.
- Talent acquisition and retention: Companies engaged in Corporate Social Responsibility (CSR) can reduce staff turnover rates by up to 50 percent. Moreover, 71 percent of employees say that environmentally sustainable companies are more attractive employers.Â
- Investor preferences: 83 percent of institutional investors now incorporate ESG metrics into investment decisions.
For instance, Tesco’s sustainability initiatives have become central to its business strategy, helping the retailer cut costs by £200 million annually while strengthening brand loyalty and market position.
“We don’t have the expertise to implement these programmes”
Response strategy: Outline practical implementation support:
- External partnerships: Industry organisations and sustainability-focused NGOs offer implementation support.
- Phased capability building: Begin with external support while developing internal capabilities through training and recruitment.
- Peer learning networks: Business sustainability networks facilitate knowledge sharing among companies implementing sustainability programmes.
Conclusion
CFOs today are uniquely positioned to turn sustainability from a cost centre into a strategic growth lever. As stewards of capital and risk, their leadership is essential for embedding sustainability into core business strategy. But unlocking that leadership starts with knowing how to talk to your CFO about sustainability, in language that connects ESG goals with financial performance.
The companies that outperform will be those where the CFO doesn’t just approve sustainability investments but helps shape and accelerate them. Explore our sustainability courses online to equip your leadership team with the knowledge, tools, and confidence to lead this transition.
