The CFO’s Dilemma: Cooking the Books or Cooking the Planet?
By Richard Ndebele
The New Bottom Line: Planet, People, and Profit
Traditionally, the CFO’s focus has been on financial metrics – revenue, earnings per share, EBITDA. But 21st-century capitalism is evolving. The global shift towards Environmental, Social, and Governance (ESG) frameworks is reshaping how business performance is measured. Investors, regulators, and even consumers are demanding more than just healthy profits – they want proof that companies are not “cooking the planet” to cook their books.
In Zimbabwe and across the region, CFOs are increasingly being called upon to lead the charge in sustainability reporting. The introduction of IFRS Sustainability Disclosure Standards (ISSB), growing expectations from the Zimbabwe Stock Exchange (ZSE), and the rise of integrated reporting have placed climate-related disclosures on the CFO’s desk.
The question is no longer “Can we afford to go green?” – but rather, “Can we afford not to?”
Financial Engineering vs Climate Integrity
The temptation to window-dress financials in the face of economic headwinds is real. Zimbabwean businesses have had to navigate hyperinflation, currency fluctuations, exchange rate losses, and supply chain disruptions. In this turbulent terrain, some CFOs may feel justified in shifting figures or underreporting liabilities – believing it a necessary evil to stay afloat. Yet, as recent global scandals – from Wirecard to Steinhoff – have shown, cooking books often lead to corporate implosion, reputational ruin, and legal consequence. In contrast, cooking the planet – by underreporting emissions, ignoring environmental risks, or greenwashing reports – has longer-term and even more irreversible consequences.
The Rise of the Green CFO
Forward-thinking CFOs are embracing a broader definition of value. They are embedding sustainability into budgeting, capital allocation, and financial modelling. For instance:
– Carbon accounting is now a line item in many global firms’ financial statements.
– Climate risk is being integrated into scenario planning and insurance decisions.
– Sustainability-linked finance is unlocking cheaper funding for green-aligned businesses.
Even in Zimbabwe, banks are making measurable progress in integrating sustainability into their core operations. According to a December 2024 survey by the Reserve Bank of Zimbabwe (RBZ), 56% of banking institutions have embedded sustainability into their business models, with many board members now possessing Environmental, Social, and Governance (ESG) expertise. Additionally, 32% have adopted board-approved sustainable finance policies or frameworks. Alongside these developments, the moves by the Public Accountants and Auditors Board (PAAB) to align financial reporting with ISSB standards signal a future where CFOs must be as climate-literate as they are spreadsheet-savvy.
Caught in the Crosshairs: The Ethical Dilemma
This is the heart of the CFO’s modern dilemma:
Do I manipulate short-term earnings to please investors or invest in long-term sustainability that may dilute immediate profits but safeguard the company’s future and the environment?
The ethical CFO recognises that fudging numbers whether financial or environmental is a slippery slope. There is growing reputational risk for companies that greenwash or fail to disclose climate-related impacts. Regulators are catching up. Activist investors are mobilising. Consumers are watching.
What Zimbabwean CFOs Must Do Now
- Adopt Global Standards: Embrace the ISSB’s IFRS S1 and S2 sustainability standards early.
- Lead internal ESG training and build capacity.
3. Integrate Sustainability into Strategy: Ensure climate risks are embedded into enterprise risk management, not just sustainability reports.
4. Push for Transparency: Invest in systems that allow accurate data collection, carbon accounting, and lifecycle costing.
5. Build Multi-Disciplinary Teams: Work with environmental scientists, engineers, and compliance officers to get the full picture.
6. Lead Ethically: Resist pressure to fudge either the books or the footprint. Integrity is the ultimate insurance policy.
Conclusion: From Number Cruncher to Future Builder
The CFO of the past ensured that the books balanced.
The CFO of the future must ensure that planet, people, and profit are all in balance.
In the end, the dilemma isn’t really a choice between cooking the books or cooking the planet. It’s a question of courage, vision, and ethics. Zimbabwe needs CFOs who are not just financial stewards, but climate champions – guardians not just of profit margins, but of our shared tomorrow.
Richard Ndebele FCG, RPAcc, MBA, is the Manager: Technical, Research and Quality Assurance at Chartered Governance and Accountancy Institute in Zimbabwe and the PAFA Sustainability Centre of Excellence’s Country Champion. He can be contacted on rndebele@cgizim.org
