How the finance function can lead on ESG reporting and sustainability strategy

Understanding the strategic role of CFOs and ESG controllers in Ireland

With new sustainability disclosure regulations on the rise — including the Corporate Sustainability Reporting Directive (CSRD), EU taxonomy, Carbon Border Adjustment Mechanism (CBAM) and EU deforestation requirements — CFOs across the EU, and in Ireland specifically, are increasingly at the forefront of driving sustainability initiatives. They possess the technical expertise to integrate environmental and social metrics into traditional management reporting, align sustainability with long-term planning, and allocate necessary capital. Our playbook can help CFOs and their teams understand sustainability’s impact on their business, focus on high-value activities and build the skills they need to lead on these issues.

Embedding sustainability into strategy

Sustainability initiatives can be complex, spanning multiple geographies and requiring alignment across business functions. Forward-thinking CFOs recognise that embedding sustainability into corporate strategy can deliver significant financial and operational benefits. They allocate financing for these projects and establish an internal carbon price to compare decarbonisation investments with other capital allocation decisions.

Engaging the organisation on sustainability

CFOs driving sustainability must unite the organisation, as company-wide commitment is crucial to achieving strategic objectives. Every department must participate in this transformation. CFOs can provide the board with insights on compliance challenges and demonstrate how collected information supports strategic goals. Employees require clear direction on accountability for producing reliable ESG data and meeting key performance indicators, as investors increasingly incorporate sustainability factors into their analysis. Our 2025 Global Investor Survey found that 69% of global investors in Irish companies demand a level of detail in assurance reports on sustainability information that is comparable to financial audits (global average: 73%).

Leading on sustainable capital projects

Mastering sustainable capital projects requires effective governance and oversight. Projects range from upgrading heating, ventilation and air conditioning systems to initiatives such as solar panel installations. Finance teams are well-positioned to establish viable business cases for each project, evaluate credits and incentives, secure financing and meet development schedules within strict budgets.

Incorporating tax into sustainability

Involving the tax function in sustainability reporting and strategy is essential. Tax teams can assist CFOs in identifying valuable incentives and credits, enhancing return on investment, and managing cash flow through tax credit monetisation. As regulations expand, sustainability reporting, tax policies and data governance increasingly intersect, making tax team involvement crucial.

Getting reporting and compliance right

CFOs and ESG controllers must be prepared to disclose diverse metrics, from workforce conditions to greenhouse gas emissions. Efficient sustainability reporting strategies are essential. Key considerations include avoiding pitfalls in materiality assessments, digitally enabling ESG data reporting, and building trust through robust internal policies and controls.

Using technology and AI to streamline sustainability

ESG data underpins sustainability strategies, informing a company's understanding of its carbon footprint. CFOs, working with chief sustainability officers and technology leaders, can implement effective controls, processes and governance to ensure reliable information across the organisation. They can also evaluate their company's sustainability technology landscape to identify capability gaps. Cloud-based analytics, carbon calculators, data lakes, ERP add-ons and chatbots can enhance current systems. AI and generative AI can help meet reporting requirements more efficiently and cost-effectively.

Integrating sustainability into the finance function

As the CFO's role expands with a focus on sustainability, so does the influence of the finance function. Talent with the necessary experience and technical skills is scarce, so CFOs may need to reimagine roles and reskill staff. A crucial addition to the finance team is the ESG controller, dedicated to overseeing the company's ESG reporting initiatives and driving collaboration across the organisation. This role allows CFOs to focus on strategic issues while ensuring sustainability remains a priority.

Preparing for future requirements

Even advanced sustainability programmes must prepare for future requirements. Global regulations may soon mandate reporting on deforestation, sustainable packaging, human rights and nature impacts. This complexity underscores the need for effective sustainability reporting strategies.

Key actions businesses can take today

1. Establish cross-functional ESG teams: Form cross-functional teams involving finance, operations, IT and sustainability experts to ensure comprehensive ESG integration. These teams will address potential inconsistencies and subjective reporting processes, ensuring that sustainability efforts are cohesive and aligned with overall business objectives. This approach can help prepare for the scrutiny that may accompany the first CSRD reports.
2. Implement real-time ESG data monitoring: Use advanced analytics and AI to monitor ESG data in real-time. This approach will help identify issues and opportunities immediately, enabling proactive decision-making and timely adjustments to sustainability strategies. Leveraging AI can also help meet governance requirements and support ESG objectives.
3. Enhance supplier sustainability practices: Collaborate with suppliers to improve their sustainability practices. Establish clear sustainability criteria for supplier selection and ongoing evaluation. Provide training and resources to help suppliers meet these standards and work together to develop innovative solutions that reduce environmental impact. As demand for third-party supplier ESG performance verification grows, this collaborative approach ensures accountability and enhances overall corporate sustainability performance.
4. Develop ESG training programmes: Create and implement training programmes for employees at all levels to enhance their understanding of ESG principles and practices. This fosters a culture of sustainability within the organisation, ensuring that all employees are equipped to contribute to ESG goals. With the potential for ESG assurance providers to seek additional talent and skills, these training programmes will be essential in building internal capabilities.
5. Engage with stakeholders on ESG goals: Regularly communicate with stakeholders, including investors, customers and suppliers, about your ESG goals and progress. Transparency and engagement build trust and can lead to valuable feedback and partnerships that support your sustainability initiatives. Clear communication can also help mitigate the risk of greenwashing accusations and regulatory reviews.

We’re here to help you

At PwC, our suite of credentials, expertise and offerings for ESG-infused finance transformation continues to grow. We can support your company every step of the way, covering maturity and baselining, strategy development, transformation planning and road mapping, implementation and operationalising sustained outcomes. Contact us today.