Sustainability Magazine October 2026 81 | Page 102

VERDANTIX
financial benefits, rather than resting on projections decades into the future.
Finance is becoming more embedded in sustainability governance – though funding influence is not the same as ownership: only 11 % of CSOs report directly to the CFO.
Q. WHY ARE INVESTMENTS IN EFFICIENCY SUCH AS ENERGY REDUCTION OR OPERATIONAL WASTE CUTBACKS EASIER TO GET FUNDED COMPARED TO LONG-TERM RISK-PREVENTION TECHNOLOGY, EVEN WHEN THE POTENTIAL IMPACT OF INACTION IS HIGHER?

» Efficiency projects win funding because their case is legible in the language capital committees already speak: a defined input reduction, a predictable payback and savings that land on the P & L within the CFO’ s typical planning window.

Risk-prevention technology has to clear a harder bar. Its benefit is a loss that never happens, its timing is uncertain, and its scale depends on a hazard or regulatory event that may or may not occur on any given budget cycle.
Even where the potential downside of inaction is larger, an uncertain, backloaded avoided cost is structurally harder to defend in a capital process built around measurable, near-term return.
This is precisely the asymmetry sustainability leaders need to correct for: reframing resilience spend not as a speculative future benefit, but as a defined reduction in a quantified exposure the business already carries.
Q. WITH EVOLVING REGULATIONS AND SHIFTING GLOBAL SUPPLY CHAIN RISKS, DO YOU SEE SIGNS THAT BOARDROOMS ARE BEGINNING TO RECALCULATE CLIMATE AND ESG RISK?

» Yes – boards are increasingly treating climate and ESG risk as a businesscontinuity, financial and supply-chain issue, not just a disclosure obligation.

Verdantix research shows boards are now consistently engaged in strategic risk management, with sustainability and finance functions regular participants in that conversation.
The relevance is unambiguous where it counts most. Supply chains are doing
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