Deloitte CFO Survey: Focus on cost reduction, sustainability deprioritised on CFO agenda
Although core financial KPIs are improving, Dutch CFOs are not significantly more optimistic than six months ago, according to the latest edition of Deloitte's CFO Survey.
"This reflects a broader concern about the competitive position of the Dutch economy on the global stage," said Mohamed Bouker, Partner Technology & Transformation at Deloitte. Dutch CFOs expect to have their hands full with cost reduction in the next 12 months (73%). Notably, cyber risks are increasingly making their way onto the CFO agenda, possibly as a result of geopolitical instability.
Rotterdam, 20 November 2024
Sustainability deprioritised on CFO agenda
Interestingly, sustainability has dropped as a strategic priority for Dutch CFOs: from 68% in the previous edition of the CFO Survey (spring 2024) to 48% now. Despite this decline, Dutch CFOs are experiencing increasing pressure to comply with sustainability regulations. The finance function plays a crucial role in sustainability reporting; 32% of Dutch CFOs are primarily responsible for sustainability reporting, while 37% of them make a significant contribution.
The main challenges for Dutch CFOs in sustainability reporting are the availability and consistency of data (49%) and changing regulations (16%). Other obstacles include the limited availability of expertise (12%), measuring impact with the right KPIs (8%), and the low level of standardisation and infrastructure for reporting (7%).
Navigating a complex risk landscape
Dutch CFOs view a shortage of qualified professionals (56%), cyber risks (55%), and geopolitical risks (40%) as the biggest challenges to their business models. "Technological advancements are making cyberattacks increasingly complex, leading companies to invest more in robust security strategies," says Mohamed Bouker. "CFOs play a crucial role in this by providing the financial framework for risk management."
Geopolitical risks, such as increasing protectionism, can limit market access and disrupt supply chains. These challenges compel CFOs to be vigilant in market forecasting as developments are fast-paced.
CFOs reluctant to invest in AI
Although AI is currently used for only 20% of strategic decisions, Dutch CFOs expect this to increase significantly over the next five years. They anticipate that AI will be involved in half of all strategic decisions by that time. Financial services are leading; 71% of Dutch CFOs in this sector expect AI to play an important role in the near future.
"AI is increasingly integrated into ERP systems, which may explain why further AI investments are somewhat lagging behind. Due to economic uncertainty and limited budgets, CFOs are reluctant. Nevertheless, AI can be a powerful engine for growth and improvement. It is essential to use AI strategically and purposefully, not just for cost savings," says Mohamed Bouker.
The share of the digitalisation budget allocated to AI has slightly increased from 10% (CFO Survey, spring 2024) to 14%.
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