As sustainability becomes increasingly central to business strategy, finance professionals, particularly ESG Controllers, are playing a more critical role in aligning sustainability with financial performance.
In our recent webinar, cohosted by the (CSB), we explored how ESG Controllers can serve as a bridge between sustainability and finance, how to apply CSB’s Return on Sustainability Investment (ROSI?) methodology, and what tools and practices can help quantify the financial value of sustainability initiatives.
Here are five key takeaways from the session:
1. ESG Controllers Are Uniquely Positioned to Advance Sustainability
ESG Controllers are emerging as essential leaders in embedding sustainability into core financial and operational decision-making. Their cross-functional visibility and deep understanding of internal processes allow them to collaborate with legal, compliance, finance, and sustainability teams, making them well-equipped to assess the financial implications of sustainability risks and opportunities.
The discussion emphasized that ESG Controllers often have a bird’s-eye view of the organization. They can help translate sustainability initiatives into business language and financial metrics that resonate with leadership.
2. Most Companies Are Not Measuring the Full Financial Value of Sustainability
Despite growing sustainability commitments, many organizations have yet to quantify the full return on their sustainability investments. This represents a missed opportunity to build a stronger internal business case for further action.
The ROSI? methodology, developed by the , provides a framework for identifying and measuring the financial performance of sustainability strategies. It moves beyond cost savings to consider revenue growth, risk mitigation, brand enhancement, and more.
Companies that adopt ROSI? often uncover hidden sources of value and gain insights that inform smarter investment decisions.
3. Measuring Avoided Costs and the Cost of Inaction Is Essential
One of the most powerful yet underutilized aspects of sustainability ROI is the measurement of avoided costs, the value preserved by preventing future losses. This is especially critical for companies with climate-related financial risks tied to supply chains, resource scarcity, or regulatory exposure.
For example, companies that invest in water conservation or climate-resilient sourcing may avoid future supply disruptions and cost volatility. The cost of inaction, from regulatory penalties to reputational damage, can far exceed the upfront investment in climate risk mitigation.
The ROSI? methodology offers tools to quantify these avoided costs, helping organizations assess how today’s investments can prevent tomorrow’s losses.
4. Start by Partnering with Sustainability Teams to Define Outcome-Based KPIs
Implementing ROSI? starts with collaboration. ESG Controllers can work with sustainability professionals to define outcome-based KPIs that connect sustainability initiatives to measurable business performance.
These KPIs might include avoided costs, operational efficiencies, or improvements in employee engagement and retention, translated into financial terms. Establishing shared metrics ensures sustainability and finance are aligned, and creates a roadmap for tracking impact over time.
As ESG reporting requirements expand, having robust, outcome-oriented KPIs will also support regulatory compliance and audit readiness.
5. There’s Strong Momentum to Go Deeper
The level of interest from webinar attendees underscored a growing appetite for continued learning and community building. In our post-event poll, we found:
- 67% are interested in joining a LinkedIn Group for ESG Controllers
- 58% want to participate in ROSI? training or a company pilot project
- 56% are interested in joining a ROSI? working group focused on practical applications
- 52% would attend follow-up Zoom sessions with real-world examples
- 51% would use a dedicated website for ROSI? case studies and Q&A
This level of engagement signals a strong desire to operationalize these concepts and build a peer learning network.
Want to Learn More?
As the role of ESG Controllers continues to evolve, tools like ROSI? are becoming essential for linking sustainability to financial performance. Whether you're just beginning your journey or looking to deepen your organization’s ESG strategy, the NYU Stern Center for Sustainable Business offers a practical, data-driven approach to help you take the next step.
, and discover how your organization can pilot the methodology, join upcoming working groups, or engage in further learning. For more information or partnership inquiries, please contact rosi@stern.nyu.edu.
