This past week at Uniting Business Live, 60 CFOs made global headlines in a monumental effort by finance leaders and corporations – scaling $500 billion towards Sustainable Development Goals (SDGs). This commitment was coordinated by the UN Global Compact and CFO Taskforce to recruit companies with similar revenue strategies and radically scale sustainability investments.
In the context of the Future Office of the CFO, boosting performance on sustainability can create a massive uptick in employee and customer experience. Moreover, investors forecast Global Sustainability at a $12 Trillion a year market by 2030. It is crucial that company strategy leaders consider if sustainability could serve as a tool for growing business profitability and thriving in future financial investments. This Future Office of the CFO Minute captures key moments from the announcement, looks at key leaders and organizations orchestrating this effort, and offers a framework for future sustainability market opportunities.
Highlights
Due to the Covid-19 pandemic, economic sectors have been severely impacted causing challenges for businesses of all sizes. In her opening statement Sandra Ojiambo, CEO & Executive Director of the UN Global Compact addressed the crucial need to accelerate towards sustainability goals.
Increasingly, companies understand that their survival depends on how they respond to the cataclysm unleashed by the pandemic and by climate change.
To achieve lasting prosperity, we need to build a future that protects people and the planet.
Sanda Ojiambo, CEO & Executive Director of the UN Global Compact
If these efforts towards global scale are successful, businesses could potentially mobilize trillions of investment dollars annually to support areas like sustainable infrastructure, renewable energy, water, health, food and agriculture, gender, and adequate working conditions.
Scott Mather, CIO of U.S. Core Strategies at PIMCO and Co-Chair of the CFO Taskforce, said: “The demand for sustainable investment is growing among our clients and we are encouraged by the proactive stance that companies are taking to bring investment opportunities to the market. The CFOs in our Taskforce can already be credited with key developments in the market for sustainability-linked bonds and we expect their leadership to support growth in the sustainable debt market, potentially reaching between $10 to $20 trillion in the next five years.”
The UN Global Compact CFO Taskforce also created a management and governance framework, encouraging companies to establish performance metrics towards sustainability goals and “creating a market for mainstream investments.”
More on the UN Global Compact CFO Taskforce
The UN Global Compact CFO Taskforce is comprised of 60 executives from leading companies who are inspiring the future of CFOs to become architects of long-term sustainable value.
Launched in 2019, this CFO platform is intended to interact with peers, investors, financial institutions and the United Nations to share ideas, develop new concepts and frameworks, and provide recommendations to unlock private capital and create a market for mainstream SDG investments.
It stems from the recognition that—as stewards of trillions of dollars in corporate investments—CFOs are uniquely positioned to reshape the future of corporate finance and investment as a catalyst for growth, value creation, and social impact.
CFOTaskforce.org
Organizations represented by the CFO Taskforce include Verizon, Holcim EDP, Principal, Tata Steel, Schlumberger, Unilever, Workiva, and more. The Taskforce hopes to grow by at least 1000 members by 2023. For helpful resources, check out UnGlobalcompact.org containing blueprints and action plans that strategic business leaders can take back to their teams and board.
