The role of a CFO continues to evolve every year. 2022 looks set to bring yet more challenges to hard-working CFOs. The constant fight to secure high-caliber CFOs will become more brutal. On a positive note, a PwC survey found CFOs are not fazed about hybrid work and are still confident about growth.
Also, in 2022 ESG metric reporting will continue to rise. A genuine commitment from organizations is required, and business transparency will be essential. According to a KPMG survey, 80% of companies worldwide report on sustainability, and the Americas lead in sustainability reporting.
But are you ready to handle deeper scrutiny of your business?
The world has changed, and the pandemic has pushed the agenda further still. Corporate responsibility is now firmly in the spotlight. It has made people think about how businesses operate. Stakeholders want to know what companies are doing behind the scenes. It’s no longer a mild curiosity but a necessity for businesses.
Optimizing Talent Management In 2022
With all these future commitments, why not make the role easier for yourself in 2022. You are already spinning so many plates. You don’t need to add another one to the mix. But do you currently have the right talent in your organization to manage future changes?
CFOs can level up their skills by employing the right talent in their organization. You can bring in the right talent and push the company forward. It can help take the headache and stress out of team management. It also gives you the ability to present critical data as and when required.
Data is king, especially for the regulators.
You can go straight to the heart of your finance department and get the information you need. This commitment is reassuring for regulators and demonstrates your accountability. You show you have the right talent and system in place to handle ESG reporting – one which is 100% compliant and will match expectations.
All CFOs relish a challenge, but a proactive approach will always trump a reactive one. Plus, once you have an effective system to handle your ESG reporting. You can easily adjust it when regulations change. It all means fewer plates spinning above your head and more control.
Finding The Best Talent To Support A Modern CFO
There will be an increase in ESG reporting commitments and a race to secure the best talent. The talent battle will never disappear, but the working landscape has changed dramatically. Hybrid work models are presenting newer challenges for CFOs. It has made it even more difficult to source and retain specialist data talent.
Digitalization means the talent needs to be specialized in handling data to keep it on point. Modern CFOs will become tech-savvy ninjas creating departments to deliver optimum business intelligence. The leading CFOs will be the ones that get the tech talent right.
57% of respondents in an Ernst & Young survey of CFOs and Finance leaders found skills in predictive and prescriptive analytics will be critical for the future. Also, the talent needs to have other skills to handle the data and tie it all together. Here are some of the skills that a finance team should actively encourage.
- Analytical and problem-solving skills
- Business intelligence
- Emotional intelligence
- Interpersonal skills
The Importance Of An Environmental, Social and Corporate Governance (ESG) Reporting System
Once you have secured the brightest and best talent, you can feel comfortable knowing you can handle ESG reporting. Being socially responsible and using the best sustainable practices need to be part of the company’s culture. You can take anything the regulators throw at you with the right team in place,
It’s now a case of “we’re all in it together” instead of old monopolistic thinking.
ESG reporting involves a full disclosure of data that shows a company’s operations in three key areas: environmental, social, and corporate governance. It can give a quick snapshot to stakeholders of how the company is performing. It’s also beneficial as a tool internally, as you can use the data for risk and opportunity assessments.
Using Stakeholder Capitalism Metrics
During the Sustainable Development Impact Summit 2021 of the World Economic Forum, 50 companies co-created metrics highlighting the need for consistent ESG reporting. These Stakeholder Capitalism Metrics use existing ESG frameworks and data points that companies can compare, regardless of their industry or location.
You can see the current list of companies who have signed up for the Stakeholder Capitalism metrics here. The list continues to grow, and corporate responsibility is becoming more managed than ever before. You can follow suit and ramp up your commitment to protecting your company and future business.
The Future Of ESG Reporting In 2022
Regulators will track businesses deeper in 2022. You need to ensure your company is 100% accountable and transparent. This continual drive in ESG reporting will force more companies to act. Or get left behind in a wave of stress and potential fines. Your role as CFO is to have accurate data at the push of a button, with no exception. A specialized data team can help you differentiate the actual data from “noise.”
Keeping The Regulators Happy
You have it in your power to keep the regulators happy so that everything can run smoothly. Handling the daily business is enough work for you already. You can get ahead of the game and make ESG reporting a priority in your business across all departments. It will help you avoid audits, fines, and extra workforce costs.
In Conclusion
2022 will be a big year for the role of a CFO as it continues to evolve into a techy-futuristic jack of all trades. The talent battles will continue, with the added urgency to secure staff with the proper skill set. It’s about handling the data correctly and seeing the bigger picture.
ESG reporting and commitments will increase, and organizations need to be ready. By creating an ESG reporting system that fits all current requirements, you will be ahead of the game. You can use specialized talent to meet changing regulations and your corporate responsibilities. You can make 2022 your year.
Do you want to stay on top of the latest trends in compliance and regulation?
Subscribe to Planet Compliance. Or find out more about the benefits of our premium membership.
You can also write a guest post for Planet Compliance. Share your business ideas and views on compliance and regulation with us. Then we will share them with the planet.