ESG | GREEN FINANCE
Green finance isn ’ t just a financial matter ; it ’ s a strategic imperative that influences our decisions and contributes to long-term success
Matthias Heiden CFO , IFS
environmentally-responsible projects and aligns with our own sustainability goals . “ I also allocate resources to develop solutions that help both our organisation and our customers monitor and reduce environmental impacts . This includes tools for energy efficiency , carbon emissions tracking , or sustainable supply chain management practices .”
Green finance : Essential to modern business strategy As ESG goals continue to gain prominence , Heiden is unequivocal when discussing the importance of green finance in the context of the modern-day business landscape .
He references a recent IDC report sponsored by IFS , which revealed sustainability targets are top of mind for many manufacturers . Almost two in five ( 39 %) respondents ranked ‘ embedding sustainability goals in operations ’ as a top priority , while 30 % selected ‘ developing a sustainability strategy ’.
“ Green finance serves as a critical tool for companies to demonstrate their commitment to environmental sustainability ,” continues Heiden .
“ As environmental concerns like climate change intensify , regulatory bodies tighten their grip on eco-friendly standards and various stakeholders – from consumers to investors – increasingly prioritise sustainability , businesses must adapt or risk falling behind .
“ Green finance not only helps companies meet these evolving expectations , but also fosters cost savings , grants access to capital and enhances long-term resilience and competitiveness .
“ In this era of heightened environmental awareness , green finance has transcended being a mere trend to become an essential component of the modern business strategy .”
The evolving role of the CFO Green finance has fast become a key consideration for the CFO of today – and not just at IFS or within the tech sector , but across all industries .
In the service sector , for example , sustainability is prioritised as the key area of focus , according to IFS ’ Global State of Service 2023 report , demonstrating these firms are realising that sustainability can be a powerful competitive differentiator and something for which customers are willing to pay a premium .
Heiden goes into greater depth about the impact of green finance on his own role , his department and the wider business .
80 November 2023