Over half of CFOs across the UK believe net zero to be a very important issue, with a third saying it is one of the most important aspects to their remit.
However, the current practicalities of realising these goals limit progress, according to new research, shared with Net Zero Investor.
CFOs identified an increase in overhead costs (27%), managing financial risk (24%) and complexity of renewable tech (21%) as the main barriers to signing off sustainability investments.
The survey, by energy procurement firm Open Energy Market, captured the perspectives, opportunities and challenges facing 150 CFOs in driving sustainability initiatives across the UK, found that the majority of CFOs (85%) believe achieving net zero is important to business growth.
Key net zero driver
The finance department is endorsed by 44% of CFOs as the most important business function in driving net zero.
This perspective is more pronounced amongst larger companies, with more CFOs (37%) at these businesses saying facilitating the transition to net zero is one of their key priorities over the next twelve months, compared to the country average (26%).
Almost half (48%) of CFOs say there is room to improve the alignment between procurement and sustainability teams, which suggests business cases for renewable investment require financial grade insights and a more cohesive approach to better engage finance teams.
Chris Maclean, Chief Executive Officer, Open Energy Market, said: “It’s encouraging to see the strong commitment of CFOs to prioritise the transition and make a difference. If we’re to make these ambitions accessible to all organisations, a huge amount needs to be done to ensure that sustainability project proposals are based on accurate insights, robust modelling and a deep understanding of market volatility.”
“True offers just that. It is unique in that it provides a foundation of accurate data and insights for stronger sustainability business cases and effective carbon-neutral strategies. Replacing inaccurate conjecture and static spreadsheet modelling, the platform uses holistic, dynamic and bespoke financial modelling," Maclean continued.
CFOs face multiple complex considerations when it comes to green energy initiatives.
The main reasons for delay are the lack of cost-effective solutions to support implementation of renewables (40%); a lack of technologies that offer investment grade cost-benefit analytics of the business’s energy mix (37%); followed by limited access to expert partners and advisors to support the implementation of renewables (28%).
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