Over half of CFOs say sustainability is now a key part of their role
- New research into UK CFOs finds over half (53%) believe sustainability is very important to their role and 44% see the Finance department as the most important business function in driving sustainability
- The research also finds overhead costs (27%) financial risk (24%) and complex renewable tech (21%) are the main barriers to sustainability investment
- Top reasons for delayed decisions: lack of cost-effective renewables (40%); shortage in investment grade cost analytics (37%); limited access to expert partners (28%).
London, 22nd May 2023: New research commissioned by energy procurement specialist, Open Energy Market, reveals over half (53%) of CFOs believe sustainability to be very important to their role, with a third (33%) saying it’s one of the most important aspects to their remit.
However, the current practicalities of realising these goals can limit progress. CFOs identified an increase in overhead costs (27%), managing financial risk (24%) and complexity of renewable tech (21%) as the main barriers to signing off sustainability investments.
The survey, which captures the perspectives, opportunities and challenges facing 150 CFOs in driving sustainability initiatives across the UK, found that the majority of CFOs (85%) believe achieving net zero is important to business growth.
The news coincides with the launch of the company’s first-of-its-kind net zero platform, True. True unites an organisation’s real energy procurement costs and net zero strategies in one platform, enabling teams across sustainability, procurement, operations and finance to building stronger financial-grade businesses that accurately demonstrate the viability, ROI and impact of renewable investment.
The finance department is endorsed by 44% of CFOs as the most important business function in driving sustainability. This perspective is more pronounced amongst larger companies, with more CFOs (37%) at these businesses saying facilitating the transition to net zero is one of their key priorities over the next twelve months, compared to the country average (26%).
Almost half (48%) of CFOs say there is room to improve the alignment between procurement and sustainability teams, which suggests business cases for renewable investment require financial grade insights and a more cohesive approach to better engage finance teams.
Chris Maclean, Chief Executive Officer, Open Energy Market, said: “It’s encouraging to see the strong commitment of CFOs to prioritise the transition and make a difference. If we’re to make these ambitions accessible to all organisations, a huge amount needs to be done to ensure that sustainability project proposals are based on accurate insights, robust modelling and a deep understanding of market volatility.”
“True offers just that. It is unique in that it provides a foundation of accurate data and insights for stronger sustainability business cases and effective carbon-neutral strategies. Replacing inaccurate conjecture and static spreadsheet modelling, the platform uses holistic, dynamic and bespoke financial modelling. This breakthrough from Open Energy Market builds confidence in decision making, accelerates action and is poised to expedite the journey to net zero.” CFOs face multiple complex considerations when it comes to green energy initiatives. The main reasons for delay are the lack of cost-effective solutions to support implementation of renewables (40%); a lack of technologies that offer investment grade cost-benefit analytics of the business’s energy mix (37%);
followed by limited access to expert partners and advisors to support the implementation of renewables (28%).
With its data-driven capabilities, True provides changemakers and environmentally conscientious businesses with real-time visibility into the effectiveness of their energy mix, in turn helping them to save money, have greater control over the execution of net zero strategies and make informed sustainability decisions.
Chris Maclean continued: “As we collectively work towards net zero goals, having up-to-the-minute data and insights on a business’s true energy costs and net zero strategies can unlock the path to a more sustainable future, faster. True integrates these elements into one convenient platform, so changemakers can have the confidence and conviction to drive real, positive and sustainable change.”
For more information about True, visit www.truezero.tech.
For media enquiries, please contact OpenEnergyMarket@thephagroup.com
About Open Energy Market
Open Energy Market, a leading provider of energy procurement services and Net Zero technologies, was established in 2012 with the aim of making the energy industry more transparent and accessible to businesses.
The company specialises in utilising data and insights to inform their Risk Management, Trading and Sustainability experts, bringing cost savings, confidence and control to clients in a volatile market. Open Energy Market now supports some of the largest energy users across the country and boasts a highly successful buying fund that protected its customers from the energy crisis in 2022.
In an industry that has historically lacked technology, transparency and innovation, Open Energy Market pioneers digital solutions that help organisations to save money and decarbonise their energy mix with confidence and conviction.
The business recently announced the launch of its groundbreaking proprietary platform, True, which unites an organisation’s real energy procurement costs and Net Zero strategies in one platform. Championing changemakers, True brings project viability, transparency and simplicity to the complex energy world, enabling any user to build stronger financial grade business cases and help their business overcome the hurdles of renewable investment.
The newly launched platform unifies teams across sustainability, procurement, finance and operations and arms these changemakers with the ability to make a difference, faster, on the journey to a more sustainable future.
For more information about Open Energy Market, visit www.openenergymarket.com.
For more information about True, visit www.truezero.tech