IN BRIEF:
• CFOs are transitioning into Value Architects, integrating sustainability and leveraging AI to enhance long-term value creation and innovation.
• The adoption of advanced technologies is empowering CFOs to refine both financial and non-financial reporting, yielding deeper insights and promoting sustainable business practices.
• Value Architects must craft a compelling value narrative, outline a business case, and establish a new operating model.
In a world defined by complexity, uncertainty, and transformation, the role of the Chief Financial Officer (CFO) is being reinvented. No longer confined to the realm of compliance and financial stewardship, today’s CFOs are stepping forward as Value Architects — leaders who build and shape the future of organizations by integrating sustainability, harnessing the power of AI, and driving long-term strategic value.
Welcome to the “Age of And,” where CFOs must deliver short-term performance and long-term value, financial returns and non-financial impact, shareholder gains and societal progress.
FROM SCOREKEEPER TO STRATEGIST
Traditionally, the CFO has been viewed as the company’s financial guardian — tasked with ensuring regulatory compliance, managing risks, and delivering quarterly results. But in a landscape disrupted by climate risk, digital innovation, and shifting stakeholder expectations, that legacy definition is no longer enough.
Today, CFOs are stepping beyond the finance function to shape enterprise-wide strategy. This evolution — from scorekeeper to strategist — is not just a role shift; it’s a mindset shift. The modern CFO must be a translator between the language of numbers and the language of value. CFOs are becoming the “business copilot,” guiding decisions that determine future competitiveness and resilience.
SUSTAINABILITY: THE NEW VALUE-CREATION MANDATE
Sustainability has moved to the heart of corporate strategy. It’s not just about ethics or regulatory compliance — it’s about creating durable, future-fit business models. CFOs are uniquely positioned to lead this shift.
With the introduction of stringent new reporting regulations — such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and frameworks like the ISSB and TNFD — organizations are being held to a higher standard of non-financial transparency. This places the CFO at the center of an evolving disclosure ecosystem.
A recent EY survey of corporate leaders reveals that 92% of European companies are significantly transforming their approach to sustainability reporting. And 80% of institutional investors now support ESG investments — even when they impact short-term financial targets. This is a powerful signal: the market is demanding sustainable value, not just fast profits.
AI AND THE RISE OF THE AUGMENTED CFO
At the same time, AI is radically reshaping the finance function. Tasks that were once manual and time-consuming — such as reconciliations, data processing, and basic reporting — are now being automated. This frees up CFOs to focus on higher-value work: forecasting, strategic planning, scenario modeling, and insight generation.
But AI’s potential goes far beyond efficiency. It enables the integration of financial and non-financial data in real time, empowering CFOs to make more informed, holistic decisions.
According to the 2024 EY Corporate Reporting Survey, 87% of finance leaders are already using or piloting AI to enhance ESG and financial reporting. More than 60% of ESG-leading companies believe AI presents a major opportunity for long-term value creation. The opportunity is clear — but so is the responsibility. Ethical use, bias mitigation, and transparency will be essential as AI becomes more deeply embedded in finance.
THE EVOLVING ROLE OF THE CFO: A FOUR-STAGE JOURNEY
The shift from traditional CFO to Value Architect unfolds across four stages:
Scorekeeper (Yesterday): Focused on compliance, cost control, and historical reporting.
Business Copilot (Today): Collaborates across functions, supports ESG compliance, and brings insights to leadership.
Value Creator (Tomorrow): Aligns short-term results with long-term vision, integrates ESG into investment decisions, and uses AI for decision-making.
Value Architect (Beyond): Designs value for all stakeholders, leads convergence of ESG and financial reporting, and embeds sustainability at the core of strategy.
This is not a theoretical exercise. Companies that proactively empower CFOs to evolve along this trajectory are more likely to thrive.
AN ACTION AGENDA FOR CFOs
To step fully into the Value Architect role, CFOs must lead with clarity, ambition, and action. Here are three critical imperatives:
Design a value story that resonates. Today’s stakeholders — investors, customers, regulators, and employees — are asking tough questions about how companies create value for the long term. CFOs must help craft a narrative that explains how financial performance and sustainability go hand in hand.
• Embed ESG into investor communications
• Articulate how non-financial performance supports financial outcomes
• Lead sustainable financing initiatives (e.g., green bonds, climate-linked loans)
Build a business case for integrated value. Sustainability investments often require up-front cost, but they also unlock long-term value. CFOs must champion robust, data-backed business cases that show how ESG drives RoI.
• Include sustainability metrics in capital allocation
• Implement internal carbon pricing
• Link ESG to financial planning, budgeting, and forecasting
Redesign the finance function. Finance teams must be equipped to manage and report on integrated value. That means transforming the operating model, investing in technology, and building new skills.
• Upskill finance professionals in ESG and data science
• Adopt AI tools for forecasting and scenario planning
• Establish audit-ready ESG reporting systems
THE CFO: A CEO-IN-WAITING?
As the CFO role becomes more strategic, it also becomes a more natural stepping stone to the CEO position. CFOs who master the art of long-term value creation, cross-functional leadership, and stakeholder engagement are increasingly viewed as future CEOs.
Organizations that embrace this shift will not only strengthen their leadership pipeline but also future-proof their strategy and governance models.
THE FUTURE OF FINANCE IS THE FUTURE OF VALUE
The CFO’s transformation into a Value Architect is both a challenge and a calling. It requires courage, capability, and a willingness to rethink the foundations of finance. But the rewards — for the organization, its stakeholders, and society — are profound. In the Age of “And,” CFOs must deliver earnings and impact, manage risk and drive innovation, honor shareholders and serve broader societal goals.
As Julie Linn Teigland, EY EMEIA Area Managing Partner, aptly puts it: “Since sustainability is intrinsically linked to value creation, and the CFO plays a key role in financial value creation, it is a natural progression for the CFO to have a more holistic view of value.” The time to embrace that progression is now.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.
Aris C. Malantic is the Financial Accounting Advisory Services (FAAS) leader of SGV & Co.
