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Envisioning the transformation of the CFO: from scorekeeper to Value Architect
Many organizations have viewed the CFO primarily as a “scorekeeper” delivering efficient accounting and financial performance. However, growing sustainability imperatives and the AI augmentation of the finance function bring a transformative shift into view: the CFO as Value Architect. Not every CFO will seize the opportunities opened by this shift, but leaders will. They will see the sustainability transformations as a chance to expand their impact, set themselves up for potential CEO roles and gain a more comprehensive view on the value the company brings to a broader set of stakeholders.
Today, with efficiency boosts from generative AI (GenAI) and data analytics, the CFO is beginning to act as the “business copilot.” In this capacity, the CFO is increasingly integrating sustainability into decision-making, monitoring progress towards environmental, social and governance (ESG) targets, defining measures with estimated capex and opex effort (e.g., for CSRD) and ultimately, infusing the equity story with sustainability.
Soon, the CFO will be in the position to drive consensus across the C-suite to align decisions with the company’s long-term value strategy. In the next step, CFOs will become “value creators” who accelerate the sustainability transformation by enabling sustainable and profitable business models, reconciling short-term cost savings with long-term value. Less than half of CFOs (48%) believe that they are already proactive value creators, while 80% are confident that they have the right skills to become key players in value creation, according to the 2024 EY Global Corporate Reporting Survey, illustrating the opportunity to increase CFO impact.
Looking further ahead in the evolution of the role, the CFO as Value Architect comes into focus. The CFO will capture value for company, people and planet. This will involve integrating financial and ESG reporting in a unified “value reporting” that accounts for both the economic value of the organization and its social and environmental contributions. “Since sustainability is intrinsically linked to value creation, and the CFO plays a key role in financial value creation, it is a natural progression for the CFO to have a more holistic view of value creation,” observes Julie Linn Teigland, EY EMEIA Area Managing Partner. “This shift would place the role of driving resilient business models and thereby creating long-term value for the company at the heart of the future finance function.”