Executive Summary
The Chief Financial Officer (CFO) is no longer just a numbers person. This article explores the evolving role of the CFO in driving Environmental, Social, and Governance (ESG) strategy, and how CFOs in Malaysia can create long-term value for their organizations by embracing sustainability.
The CFO as a Strategic Leader in ESG
Traditionally, the CFO's role has been focused on financial performance and compliance. However, as ESG becomes a mainstream business issue, the CFO is increasingly being called upon to take a leading role in driving the ESG agenda. This is because the CFO has a unique understanding of the financial implications of ESG issues and is well-positioned to integrate ESG into the company's overall strategy.
Key Responsibilities of the ESG-Focused CFO
- Integrating ESG into Corporate Strategy: The CFO can help to ensure that ESG is not just a standalone initiative, but is integrated into the company's core business strategy.
- Driving Sustainable Finance: The CFO can play a key role in securing sustainable finance, such as green bonds and sustainability-linked loans.
- Overseeing ESG Reporting: The CFO is responsible for ensuring the accuracy and reliability of the company's ESG reporting.
- Engaging with Investors: The CFO is a key point of contact for investors and can help to communicate the company's ESG story to the market.
Creating Value Through ESG
By embracing ESG, CFOs can create long-term value for their organizations in a number of ways, including:
- Enhanced Brand and Reputation: A strong ESG performance can enhance a company's brand and reputation, and help to attract and retain customers and employees.
- Improved Access to Capital: A growing number of investors are looking to invest in companies with strong ESG performance.
- Reduced Risk: A proactive approach to ESG can help to mitigate a wide range of risks, from climate-related risks to supply chain disruptions.
- Increased Innovation: A focus on sustainability can drive innovation and lead to the development of new products and services.
Related Services
Our Corporate Finance Advisory team can help you to develop and implement an ESG strategy that creates long-term value for your business. We also provide Audit & Assurance Services to provide assurance over your ESG reporting.
Last updated: 15 Oct 2025