An increasing number of companies integrate sustainability into their core business strategies, according to a survey of chief financial officers released April 22 by accounting and advisory firm BDO.

The 2024 ESG Risk & ROI Survey found that companies see numerous benefits to ESG programs beyond simply responding to regulatory mandates.

“By embedding ESG and sustainability initiatives into their organization’s overarching strategic agenda, CFOs can help retain top talent, better manage risk, and drive long-term resilience,” said Karen Baum, managing principal for the Sustainability & ESG Center of Excellence, BDO USA and Sustainability Services & Solutions, BDO Global, in a report about the survey.

The 2024 survey polled 600 CFOs with revenue ranging from less than $250 million to more than $3 billion. It found a 20-percentage-point increase from 2023 in the number of CFOs that have embedded or are actively integrating sustainability into their core business strategy, now 53%.

“They have embedded sustainability and ESG factors into their overall operating and growth plans — to the benefit of their businesses, workers, stakeholders, and the environment. Driving sustainable value is a long-term game, but companies are also seeing immediate impact on their talent pipeline and workplace culture,” the report said.

While compliance ranked as the top ESG issue in the 2023 survey, it ranked eighth this year. “The most frequently cited objectives for 2024 focus on potential upside of ESG initiatives — from improved brand reputation to talent recruitment and retention to capital access,” the report said.

For 61% of the CFOs, sustainability and ESG risks are matching or exceeding last year’s levels. A growing risk for them is generative artificial intelligence, with 52% worried about the social or governance risk associated with it. “CFOs are simultaneously excited and leery. The potential financial upside of generative AI adoption is massive,” the report said. “However, it also poses significant non-financial risks that, without the right governance mechanisms in place, could have significant economic and societal consequence.”

Read more @pionline