Net zero and the changing role of finance
The role of the finance function is being redefined. Traditionally, its primary focus had been on quantifying, overseeing, and communicating conventional financial metrics. Now, as net zero aspirations spread far and wide, the finance function is now assuming an expanded role in supporting companies’ net zero goals.
PwC Malaysia in collaboration with The Malaysian Institute of Certified Public Accountants (MICPA), conducted a survey on individuals in the finance field from various industries to gain insights into how the finance function can contribute to companies’ net zero journey. The publication then delves into the pivotal role that finance plays in the net zero agenda.
Respondents agree on one thing, the net zero agenda is here to stay. This affords finance professionals a significant opportunity to enhance their relevance and meet the ever-evolving demands placed upon them.
Key highlights
77%
consider the shift in finance role to increasingly support sustainability goals as a welcomed transition
>80%
agree on the importance of ESG comprehension for finance function
<40%
finance leaders feel confident in their ability to comprehend ESG topics
Key takeaways
Tackle the data challenge
To meet investor and shareholder expectations, secure auditable ESG data is paramount. Data processes will need to be optimised for informed decisions and reporting needs.
Bring together financial and environmental competencies
Linking finance and sustainability expertise is key. Finance executives should be allowed the opportunity to better understand climate change and decarbonisation issues through relevant sustainability upskilling and training programs.
Enhance reporting effectiveness
To mitigate greenwashing risks and strengthen trust, sustainability performance needs to be tracked and reported with the same rigor as financial performance.
