CFOs Rank ESG Metrics and Measurement as Their Top Priority, Finds Latest Protiviti Global Finance Trends Survey

Rhea-AI Summary

The annual Global Finance Trends Survey reveals that CFOs are facing increased pressure to implement and report on organization-wide ESG programs. ESG metrics and measurement have become a top priority for finance leaders, with 60% reporting a substantial increase in reporting frequency. Finance teams are preparing for new ESG-related regulatory requirements, with over 50% considering themselves ready for new disclosures. Inflation and financial planning are also top priorities, while generative AI is being used for compliance, risk assessment, and financial forecasting.

Positive

• CFOs are facing increased pressure to implement and report on ESG programs
• ESG metrics and measurement have become a top priority for finance leaders
• Finance teams are preparing for new ESG-related regulatory requirements
• Over 50% of organizations consider themselves ready for new ESG disclosures
• Inflation and financial planning are top priorities for finance teams
• Generative AI is being used for compliance, risk assessment, and financial forecasting

Negative

• None.

Finance leaders are expanding their roles to include ESG regulations, business planning and analysis and combatting data security risks, among other responsibilities

MENLO PARK, Calif., Oct. 25, 2023 /PRNewswire/ -- The annual Global Finance Trends Survey, conducted by global consulting firm Protiviti, finds that the pressure to implement and report on organization-wide ESG programs has intensified for CFOs, with 60% of finance leaders indicating a substantial increase in the focus and frequency of their reporting related to ESG issues.

Year over year, ESG metrics and measurement have jumped up the priority list, with CFOs and VPs of Finance noting it as their top priority in 2023, compared with it ranking in the 11^th position just last year. In fact, 57% of publicly held and 40% of privately held companies report that measuring and reporting ESG risks and issues has become part of their finance team's role in the last year.

CFOs and finance leaders are preparing for a global wave of ESG-related regulatory requirements, including the already-enacted Corporate Sustainability Reporting Directive (CSRD) in the European Union (EU) and expected climate impact reporting requirements for U.S. public reporting companies from the U.S. Securities and Exchange Commission (SEC). As the magnitude of these new requirements becomes apparent, finance teams continue to prepare: 52% of privately held organizations and 62% of publicly held organizations consider themselves ready for new required ESG disclosures.

"While the term 'ESG' has become a hot button issue for some, stakeholder demands and regulatory reporting requirements aren't going away, leading CFOs and finance leaders to adapt as the ESG reporting landscape continues to evolve quickly, with priorities differing vastly across industries and geographies," said Christopher Wright, global leader of Protiviti's Business Performance Improvement solution and sponsor of the firm's ESG client services steering committee. "Along with the need for finance leaders to meet ESG-related reporting demands globally, our survey also finds the underlying issues that ESG commitments strive to address continue to command the attention of finance leaders and organizations over the next 12 months and beyond."

Top 10 Priorities

In the survey of over 900 global finance leaders, including CFOs, vice presidents, directors and managers, conducted in the second and third quarters of 2023, participants ranked their priorities for the coming year. The results indicate the top 10 finance priorities are:

2023 Rank		2022 Rank
1	ESG metrics and measurement	14
2	Impact of inflation	6
3	Financial planning and analysis	2
4	Profitability reporting and analysis	7
5	Security and privacy of data	1
6	Strategic planning	3
7	Enhanced data analytics	9
8	National tax changes	18
9	Cloud-based applications	4
10	Routine reporting and closing activities	8

The survey also found that the impact of inflation is weighing heavily on finance teams, a concern rising to second priority from the 6^th spot in 2022. Combined with a focus on financial planning and analysis as well as profitability reporting and analysis, finance teams are reinforcing cost optimization measures in response to an uncertain global economy.

Organizations are exploring generative AI to drive productivity and performance to counteract the escalation of challenges for the finance function. Of the finance functions surveyed, 63% of publicly held and 39% of privately held organizations currently use generative AI. Among organizations employing this technology, almost half (49%) are utilizing it for compliance and regulatory reporting, 45% are focusing on risk assessment and management and 37% are using it for financial forecasting.

"As the number of priorities for finance leaders increases, they are forced to make high-stakes decisions by reacting quickly to a constant stream of evolving regulatory requirements," said Wright. "CFOs and their teams rely on technology and data resources to mitigate these pressures and devise strategic responses to complex challenges."

Survey Resources Available

Key findings of the Protiviti 2023 Finance Trends Survey are available here for digital exploration on the firm's website. Also available on the site for complimentary download are a PDF of the full survey report, including recommended action items for CFOs, and an infographic. On October 26 at 1:00pm ET, Protiviti will host a complimentary 60-minute webinar to discuss the survey results and their implications, featuring Chris Wright, Andrea Vardaro Thomas, Protiviti managing director, Finance Transformation, and Shelly Kalladanthyil, Protiviti managing director, Finance Transformation. To attend the webinars, register here.

About Protiviti

Protiviti (www.protiviti.com) is a global consulting firm that delivers deep expertise, objective insights, a tailored approach and unparalleled collaboration to help leaders confidently face the future. Protiviti and our independent and locally owned Member Firms provide clients with consulting and managed solutions in finance, technology, operations, data, analytics, digital, legal, HR, governance, risk and internal audit through our network of more than 85 offices in over 25 countries.

Named to the 2023 Fortune 100 Best Companies to Work For^® list, Protiviti has served more than 80 percent of Fortune 100 and nearly 80 percent of Fortune 500 companies. The firm also works with smaller, growing companies, including those looking to go public, as well as with government agencies. Protiviti is a wholly owned subsidiary of Robert Half Inc. (NYSE: RHI). Founded in 1948, Robert Half is a member of the S&P 500 index.

Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.

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SOURCE Protiviti

FAQ

What are the top priorities for finance leaders?

The top priorities for finance leaders include ESG metrics and measurement, inflation, financial planning, profitability reporting, security and privacy of data, strategic planning, enhanced data analytics, national tax changes, cloud-based applications, and routine reporting and closing activities.

What percentage of finance teams are ready for new ESG disclosures?

Over 50% of privately held organizations and 62% of publicly held organizations consider themselves ready for new ESG disclosures.

What is generative AI being used for in finance functions?

Generative AI is being used for compliance and regulatory reporting, risk assessment and management, and financial forecasting in finance functions.