CFOs stay committed to sustainability despite Trump’s new ESG agenda
Even after the recent U.S. presidential election, a significant majority of CFOs expect their companies to maintain or increase sustainability-related investments, according to a new survey by accounting and advisory firm BDO.
But the focus of that spending is shifting away from environmental and social initiatives and toward business operations and stakeholder-driven priorities.
The survey, conducted after the election, polled 500 CFOs across a range of industries, including healthcare, manufacturing, retail, and technology, at companies with revenues between $250 million and $3 billion. More than four out of five respondents work at U.S.-based firms.
Despite an incoming administration that is widely expected to scale back ESG-related regulations, corporate commitments to sustainability remain largely intact. Forty-four percent of CFOs anticipate increasing sustainability investments this year—twice the number planning cuts—while 33% expect spending to hold steady.
CFOs cite multiple reasons for staying the course, including financial benefits realized over the past five years. More than a third (37%) reported that sustainability initiatives have led to new business opportunities, while 36% credited them with boosting revenue. Other cited benefits include improved access to financing (34%), cost savings (30%), and stronger customer loyalty (30%).
At the same time, ESG risk is emerging as a top concern in financial planning, with 45% of CFOs ranking it among their most pressing business risks—just behind operational risk (48%) and product or service risk (46%).
But while sustainability is increasingly seen as a business imperative, most corporate programs remain in relatively early stages. Just 21% of CFOs say their companies are working to fully integrate sustainability into core strategy. A plurality (40%) view sustainability primarily as a way to address stakeholder expectations, while an equal share cite regulatory compliance as the main driver.
Firms that are embedding sustainability into strategy, however, report stronger financial outlooks. Among these companies, 91% expect revenue to increase this year, compared to 74% of other respondents. They are also more likely to anticipate higher profitability (69% vs. 56%).
The way companies approach sustainability is evolving. While traditional ESG priorities like reducing carbon footprints and addressing climate change remain on the radar, they are taking a backseat to more immediate operational concerns.
Only 22% of CFOs plan to prioritize carbon reduction in 2025, and just 26% say they will focus on climate change mitigation or diversity, equity, and inclusion (DEI). In contrast, a larger share plan to invest in employee health and wellbeing (40%), sustainable product development (39%), and supply chain sustainability (34%).
CFOs are also playing a more central role in shaping ESG strategy, with 80% reporting that their involvement in sustainability decision-making will increase or remain the same over the next year.
“A sustainable business is stronger, more responsive to stakeholder expectations, and more resilient to economic headwinds,” said Karen Baum, Managing Principal of BDO’s Sustainability & ESG Center of Excellence.
“When businesses move sustainability off the sidelines and integrate it into core business strategy, they create a strong offense—unlocking innovative growth pathways while defending against shifting market conditions.”