Better Finance: CFO Insights podcast

Latest Episodes:

Think ESG: a view of the EU Taxonomy Feb 20, 2023

Show notes

This special Think ESG episode of the Better Finance: CFO Insights podcast features Brian Tomlinson from Ernst & Young LLP, and Nathan Fabian, Chief Responsible Investment Officer at the Principles for Responsible Investment.

The discussion sheds light on the EU taxonomy: a system for reporting on sustainable activities. The taxonomy is expected to be a lasting reform, with significant implications for companies with operations in the EU.

The EU has placed sustainable finance and the transition to a sustainable net-zero economy at the core of its growth strategy. Efforts were directed toward development of a taxonomy with standardized environmental performance criteria aligned with the Corporate Sustainability Reporting Directive and the Sustainable Finance Disclosure Regulation. Communication and disclosure of progress toward alignment of companies' economic activities with the taxonomy's sustainability performance criteria was a priority.

The EU taxonomy creates the concept of "green by law" and provides an objective set of largely science-based criteria by which activities are measured in order to be labeled and marketed as "sustainable." The taxonomy structure indicates when an activity makes a substantial contribution to one of six environmental objectives (climate change mitigation, climate change adaptation, water, circular economy, pollution and biodiversity) with no significant harm done to the other five.

A recent EY study examines the first-year results of the application of the taxonomy and the disclosure practices adopted by EU companies in the first wave of reporting.

Visit ESG Reporting on ey.com for more.

Think ESG: Finding the path to ESG-linked financial value Jan 27, 2023

Show notes

This special ESG episode features Brian Tomlinson, Ernst & Young LLP, and Tensie Whelan, Director, Center for Sustainable Business at NYU's Stern School of Business, as they explore ESG reporting and the correlation between sustainability and financial performance.

Environmental, social and governance (ESG) performance, and how it is reported has gained significant attention across the market — as investors continue to drive for more consistent and transparent ESG metrics that will help them better assess corporate health and long-term value.

The EY Global Institutional Investor Survey found that 89% of the investors said they would like the reporting of ESG performance — measured against a set of consistent standards across the globe — to become a mandatory requirement.

While many corporations are reporting on their ESG performance and financial performance, they are often not reporting on how the two relate. The challenge most businesses face is proving the monetary impact of their sustainability efforts. So, the Center for Sustainable Business at the New York University Stern School of Business developed a Return on Sustainability Investment (ROSI) methodology to bridge the gap between sustainability strategies and financial performance, helping to build a better business case for both current and planned sustainability initiatives.

The pace of change in ESG reporting continues to accelerate. Corporate leaders across the organization should recognize and address the ESG needs of investors and all their stakeholders to create sustainable, long-term value.

Visit ESG Reporting on ey.com for more.

How the evolving ESG regulatory landscape is impacting finance Oct 27, 2022

Show notes

In this episode, Myles Corson welcomes Marc Siegel, EY Americas Corporate and ESG Reporting Leader, and Brian Tomlinson, ESG Managing Director at Ernst & Young LLP, to discuss updates on ESG reporting matters, sustainable finance trends and the launch of subseries of the Better Finance podcast dedicated to ESG regulations and initiatives.

How finance can provide security in a world of uncertainty Sep 28, 2022

Show notes

In this episode of the Better Finance: CFO Insights podcast, Myles Corson welcomes Ken Tanji, Chief Financial Officer of Prudential to discuss how to achieve financial security in a world of growing disruption, the importance of inclusivity and DEI in finance, and the key to successful hybrid working and employee satisfaction.

How CFOs can be the drivers of organizational change May 24, 2022

Show notes

In this episode, Myles Corson welcomes Joel Bernstein, CFO, Customer Success & Head of Global Finance at SAP. They discuss SAP's business model transformation, how finance functions adapted during the pandemic to accelerate investments in digital finance, and SAP's strategy to make environmental, social and governance (ESG) reporting more transparent to become a more customer focused business.

SAP has had to embrace significant change in their transformation from a legacy business model to a cloud based business model. An integral part of the business transformation was the ability to articulate corporate purpose, as well as a clear strategy about where the business was heading, to engage and inspire its people to make a sustained change.

ESG and sustainability issues are being widely embraced by the business world at large. As regulators, including the recent proposal from the US Securities and Exchange Commission, introduce global standards on climate-related disclosures reporting requirements progress, CFOs have a valuable and critical role to play in building reliable ESG reporting processes. SAP is a frontrunner in sustainability in finance, having announced carbon neutrality by 2023, two years ahead of what they originally thought they'd be able to accomplish.

By becoming a customer focused business and considering the needs of both internal and external customers, Joel believes finance has the opportunity to be a better business partner and thought leader to drive change across the organization.

If finance is not fully involved in transformation, it's happening without the function, and not as a result of it. Be on the right side of that equation.

Embrace the opportunity for finance to be a business partner, thought leader, and change driver. Finance should not be the reason that things cannot change.

The importance and acceleration of ESG and sustainability in Finance is very visible, and it is taking shape in the office of the CFO. This is a unique opportunity for finance to link operational and financial data to sustainability, making a big impact to the organization and its stakeholders.

The views and opinions expressed are those of the individuals and do not reflect the official policy or position of EY or any other organization.

Future of reporting: the journey to global ESG standards Mar 18, 2022

Show notes

This special episode of the Better Finance: CFO Insights podcast focuses on the importance of environmental, social, and governance (ESG) standards in finance. Marc Siegel, EY ESG Reporting Thought Leader, and Janine Guillot, CEO of the Value Reporting Foundation (VRF), discuss the role of VRF in simplifying ESG reporting and disclosure. The conversation highlights how corporations can adopt an ESG strategy, measure ESG performance using relevant metrics, and make ESG disclosures in a transparent manner. The discussion also examines the importance of involving cross-functional teams in ESG initiatives to help drive successful adoption of global ESG standards.

In 2021, the Value Reporting Foundation (VRF) was formed through the merger of the Sustainability Accounting Standards Board (SASB) with the International Integrated Reporting Council (IIRC). The integration of these two entities signalled significant progress towards the development of environmental, social and governance standards.

The SASB's comment letter to the SEC made it clear about the importance of ESG disclosure, including climate risk, in assessing financial performance and business risk. Companies should consider ESG disclosure as an essential aspect of their ESG strategy.

Europe has come out with an intent to develop European nonfinancial reporting or ESG standards, that would be applicable to companies and have asked the Financial Reporting Advisory Group to develop those standards. There is strong demand from global companies and global investors for some sort of international harmonization around standards.

The views and opinions expressed are those of the individuals and do not reflect the official policy or position of EY or any other organization.

How finance leaders are building the future of finance today Feb 17, 2022

Show notes

In this special episode Pat Grismer, Former CFO of Starbucks, Hyatt Hotels and Yum Brands, and Cory Hrncirik, Microsoft Modern Finance Lead, join Myles Corson for a wide-ranging discussion on the future of finance. Their conversation covers the important role of CFOs in shaping strong company culture, investing time in talent development, and leveraging finance data to drive strategy and resource allocation. The episode also provides insights from seasoned finance experts on how the finance function can have a significant impact on driving business success.

The future of finance is being shaped by major forces, including changes in consumer habits, technological advancements, and a heightened focus on social responsibility. As a result, finance leaders should adapt and innovate in order to stay ahead of the curve and help to provide continued growth for their organizations. This can require a rethink of established finance functions, such as planning, forecasting, and resource allocation, with a focus on agility and relevance. Finance technology and innovation can face challenges and opportunities as a result of these shifts.

Cory Hrncirik shares insights into the future of finance in this discussion. He highlights the increasing challenges CFOs face in keeping pace with evolving business models. The finance function, responsible for forecasting and budgeting, is bombarded with massive amounts of finance data, making it difficult for them to effectively manage it. Learn about the current state of finance along with steps being taken to ensure the finance function stays competitive.

CFOs have an important role supporting investments in ESG while continuing to drive the company's economic engine.

Talent and culture are a key element of the CFOs agenda, particularly attracting and developing for emerging skills.

CFOs can increase their impact by adapting how they communicate to better engage with key stakeholder groups.

CFOs have never had a better opportunity to transform the finance function by setting a clear vision, empowering their people to adopt a growth mindset and unlocking the power of data and finance technology.

The views and opinions expressed are those of the individuals and do not reflect the official policy or position of EY or any other organization.

How current macroeconomic and geopolitical trends are impacting finance Jan 06, 2022

Show notes

Host Myles Corson discusses the impact of macroeconomic and geopolitical trends including trade disruptions with Sally Jones, EY UK Trade Strategy & Brexit Leader and Nicolas Veron, Senior Fellow at Bruegel, Brussels & Peterson Institute for International Economics, Washington. They discuss how Brexit and Covid-19 are reshaping trade policies and the CFO's role in the global environments.

The discussion references two major events - Brexit and the COVID-19 pandemic - exploring how they have impacted macroeconomic and geopolitical trends. Sally and Nicolas share their perspectives on the evolving role of CFOs pre- and post-pandemic, and ways industries are pushing themselves in new and innovative ways to cope with changes.

Industries are now pushing themselves in new and innovative ways to stay relevant. Corporations and government organizations have been incredibly adaptive to the lockdown conditions presented by the pandemic, effectively utilizing technology to shift from in-person to remote work. The challenges businesses are facing and how they're shaping the role of the modern CFO and finance leaders in addressing those challenges cannot be understated, particularly for cross-border businesses.

Technology is moving faster than governments and regulations can keep pace with. As disparate regulations emerge to protect consumers and their data, it has become increasing difficult for companies, particularly cross-border businesses, to meet all of the obligations.

Plurilateral trade negotiations are coming together to create cutting-edge, trading commitments that will oblige companies operating within those countries to meet new and more ambitious sustainability standards.

Trade disruptions, including ones experienced with Brexit or pandemic-related supply chain issues, can help companies pinpoint and modify business functions that operate in isolation.

The views and opinions expressed are those of the individuals and do not reflect the official policy or position of EY or any other organization.

Learn how new age data analytics is pushing private company CFOs to adapt and innovate Nov 23, 2021

Show notes

In this episode, podcast host Myles Corson welcomes Jennifer Crowe, CFO of CognitiveScale, and Anthony Sgammato, EY America's Private Assurance Leader to discuss the importance of data analytics for private company CFOs.

They discuss how finance leaders can leverage the vast amount of data to sustain a competitive edge using tools such as business intelligence, artificial intelligence, and cloud storage while navigating potential challenges such as the rise in cyber-attacks and cultural integration issues. Listen in to learn more about the role of financial data analytics in the success of private companies.

For an AI software company such as CognitiveScale that makes augmented business intelligence systems, this growth in data has proven beneficial in providing true market insight. Jennifer points out that they can now integrate with other sales tools to target customers in a smarter and more efficient way. For many others, the benefits can outweigh the challenges offering the opportunity to leverage business intelligence systems, artificial intelligence, and cloud storage to bring insights from data in real time.

The initial reluctance within the Board to put sensitive financial data into the cloud is now fast changing. New cloud technology has helped transform the way companies like CognitiveScale work, enabling real-time collaboration and flexibility both internally and externally. The rise of financial data analytics has prompted many firms to leverage cloud technology in various ways. This has led to more and more CFOs seeking the help of external partners for data hosting and management.

These new business intelligence systems and data that's being driven are providing private companies with insights that young talent can use in a more efficient way. This will enable them to do more with less and be more cost efficient, as well as work on different projects throughout the organization to expand their experience.

Private company CFOs are flooded with data and understand that financial data analytics can be an important tool for maintaining a competitive edge. They recognize that the end benefits exceed the challenges of rise in cyberattacks and offers the opportunity to leverage business intelligence systems, AI, and cloud storage to bring insights from data in real time.

Financial accounting is seeing an acceleration in adopting new cloud technology into the finance function.

Private companies, as opposed to public companies, are more likely to provide young talent with the opportunity to really build from the ground up, potentially leading to new and exciting accounting and finance initiatives.

The views and opinions expressed are those of the individuals and do not reflect the official policy or position of EY or any other organization.

The CFO's expanding role in the ESG ecosystem Oct 09, 2021

Show notes

In this episode of the Better Finance: CFO Insights podcast, Myles Corson discusses the growing importance of environmental, social, and governance (ESG) issues in the real estate investment trusts (REITs) sector. He is joined by Fulya Kocak, senior vice president of ESG issues for National Association of Real Estate Investment Trusts (Nareit) and Serena Wolfe, chief financial officer of Annaly Capital Management. Listen as they delve into the role of REITs as ESG change agents and the impact of the COVID-19 pandemic on the ESG ecosystem. Get insights into the latest ESG initiatives in the real estate sector.

The impact of the global pandemic has pushed businesses to adapt and embrace innovative ideas for decision-making processes along with acting as agents of change. While it proved to be an adaptability test for almost all sectors, the initiative also revealed gaps and issues that could be resolved through with great solutions and ESG strategies.

For real estate companies, the pandemic led to changes in how they operate including updates to cleaning protocols in anticipation of reopening workspaces. Additionally, property owners and landlords invested in the latest technologies for indoor air quality, studied energy consumption versus occupancy and witnessed an increase in health and wellness rating applications. This shift indicates the growing importance of ESG initiatives and compliance in the industry.

Annaly Capital Management brought together its infrastructure, IT infrastructure and human capital in ways never considered before, in response to the magnified importance of emergency planning and system resiliency.

Given the challenges faced through the pandemic, investors are not only focused on how businesses are responding to COVID, but also on the business continuity plan. With a growing focus on environmental, social, and governance (ESG) practices and meeting stakeholder expectations, it is crucial for CFOs to lead the way in defining the company's and industry's ESG strategy. Being proactive and instrumental in shaping the company's ESG approach helps it stay ahead of evolving ESG regulations.

The CFO now plays a critical role in managing change, assessing where the company is today and how it can benefit from the ESG ecosystem in the future. It's an opportunity to make a long-lasting, meaningful impact in the face of continued uncertainty and disruption.

Stakeholder engagement is a critical part of the CFO's role around ESG. CFO leadership today is more proactive and instrumental in helping the C-Suite define what ESG means for the organization.

Good sustainability leadership is not tied to a title or a person. The key is to have passion, the ability to endure change and implement strategies, and strong communication and collaboration skills.

There's an incredible amount of entrepreneurship and interest around ESG topics. CFO's should empower their people to embrace new ideas, because it's an opportunity for everybody to make a long-lasting, meaningful impact.

The views and opinions expressed are those of the individuals and do not reflect the official policy or position of EY or any other organization.