Over the past two decades, few financial or regulatory topics have been as underestimated as sustainable finance. Today, however, it has become increasingly clear that this subject represents the next major turning point in the financial world—comparable to the introduction of international accounting standards, the digitalization of finance processes, or the rise of global transparency requirements.
For many years, corporate finance focused primarily on classic steering metrics: revenue, EBIT, EBITDA, working capital, cash flows, investment levels, and performance indicators. This logic was clear, structured and deeply embedded in governance, reporting, and decision-making processes. But the pressure on companies is changing fundamentally. Regulatory requirements are increasing, investors demand transparency on sustainability, capital markets increasingly classify ESG risks as financial risks, and business models must be aligned with climate-related and societal targets.
Sustainable finance is therefore no longer a supplementary reporting component. It is a systemic transformation.
Why Sustainable Finance Is Redefining the Finance Function
For corporations, this means:
The finance function is being fundamentally realigned. Accounting and Controlling become central drivers of strategic decisions. Non-financial KPIs gain the same importance as financial KPIs. ESG data becomes as auditable and relevant as IFRS data. Finance teams must quantify, plan and steer environmental and social impacts. Risk management becomes sustainability management—and vice versa.
This leads to a shift in the very core of the finance organization. Accounting and Controlling are no longer seen as departments that merely provide historic financial data. They evolve into architectural units of an integrated steering model that interlinks financial and non-financial information.
- Changing Framework Conditions
Few areas have experienced regulatory change as dynamic as sustainable finance. The EU has redesigned the entire financial system, including:
Capital-market regulations Banking regulations Disclosure obligations Investor requirements ESG rating methodologies Risk-management standards Reporting requirements
The CSRD (Corporate Sustainability Reporting Directive) is merely the visible part. Behind it stands a fundamental shift:
Sustainability data becomes subject to audit ESG metrics become steering-relevant Investors evaluate companies based on sustainable risks Banks issue loans based on sustainable criteria Access to capital increasingly depends on sustainable KPIs
- The Convergence of Financial and Non-Financial Steering
Historically, responsibilities were clearly separated:
Financial KPIs → Finance
Sustainability KPIs → Sustainability, HR or Communications
This separation is no longer viable. Today: ESG is finance—and finance is ESG.
Why? Because sustainability generates direct and measurable financial impacts:
Climate risks lead to impairment charges Supply-chain risks affect working capital and OPEX Energy prices alter forecasts Regulation reshapes investment logic Emissions influence cost structures Sustainability performance affects financing costs
ESG directly affects the income statement, balance sheet, liquidity and planning. This means: Accounting and Controlling must integrate ESG—not merely supplement it.
- The Role of Accounting
The biggest transformation in accounting in the past 20 years is happening now: Non-financial information becomes auditable, controlled and subject to the same quality standards as financial information.
This creates a new set of responsibilities:
Audit readiness for ESG KPIs Documentation of methodologies Assurance standards Plausibility checks Data-quality assurance Harmonization of reporting systems Integration of non-financial KPIs into financial-statement processes
Accounting becomes the central integration point for ESG data.
- The Role of Controlling
Controlling sits at the center of a profound shift:
Planning must incorporate ESG Scenario analyses must account for climate-risk impacts Forecasting must reflect regulatory scenarios Investment appraisals must integrate ESG criteria Steering models must embed non-financial KPIs Scorecards must expand Transformation pathways must be financially quantified
The controlling of the future steers not just financial KPIs—but the transformation of an entire company.
- Risk Management Becomes Sustainable Risk Management
Climate risks are financial risks. Supply-chain risks are financial risks. Reputational risks are financial risks. Regulatory risks are financial risks.
These risks must be monetized, assessed and made steerable. Sustainable Risk Management combines:
Classical risk analysis
Climate scenarios Transition risks Physical risks Regulatory risks ESG reputational risks
Conclusion
Companies that master sustainable finance gain advantages far beyond regulatory compliance. They secure better access to capital, strengthen investor appeal, reduce systemic risks, build sustainable supply chains, improve governance structures, and integrate ESG into the foundation of corporate steering.
For Accounting and Controlling, this means: They sit at the center of this development. Their role is being redefined. Their relevance increases. And they gain the opportunity to actively shape the corporation’s future.
