CFOs believe adoption of environmental sustainability practices and metrics improve shareholder value and create other financial advantages for their companies, according to a survey commissioned by Jones Lang LaSalle.
More than half of financial executives responding believe their companies would improve investor returns and shareholder value through sustainability practices, said spokesman Craig Bloomfield in an interview. The survey said 24% of respondents believe sustainability would very likely improve shareholder value, while 30% believe it somewhat likely.
The most often cited benefit was the likelihood of the reduction of risk, cited by 78% of respondents, according to a statement about the survey.
In corporate sustainability, regulatory compliance was ranked as a high priority by 61% of respondents and a midlevel priority by 26% of respondents. Improving energy efficiency and reducing greenhouse gas emissions was ranked as a high priority by 47% and a midlevel priority by 32%.
The greatest barriers to incorporating sustainability into financial strategies include the inability to measure the effects of sustainability on shareholder value, cited by 46% of respondents; inability to document the effects on financial performance, cited by 37%; and a lack of standard decision-making frameworks that consider environmental factors, 36%, the statement said.
The survey of 175 CFOs and senior finance executives was conducted by CFO Research.