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 11th
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 6th 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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