SE Advisory, IESE: Where Green Value Goes Missing

Most modern companies have the sustainability ambition and the data to act on it. What many lack, a new report argues, is the ability to turn it into money.

So argues the 2026 Executive Report from SE Advisory Services and IESE Business School, which finds companies leave real money on the table when sustainability stays a reporting exercise instead of shaping how they operate and raise capital.

Closing that gap, the joint analysis argues, means embedding sustainable practice across the functions a CFO owns, operations, risk and financing and linking raw data to decision-grade financial insight.

The report draws on the CSO Circle, convened by IESE's Institute for Sustainability Leadership, to make the case.

Efficiency is a margin story

Industrial energy use offers the most immediate financial return, the report finds, when efficiency is treated as a margin and resilience strategy rather than a green initiative.

It shields operations from volatile input costs, and the variation between sites is stark, with a five-fold gap in energy use between plants making identical plastic bags and a seven-fold gap in brick production.

Counting operational gains such as reduced downtime and lower maintenance alongside raw energy savings lifts a project's total value by 40% to 250%.

Targeted efficiency work typically delivers 15% to 20% in energy savings on a three to four-year payback.

"One idea from this research stayed with me. Yes, sustainability creates value. But this value capture doesn't happen automatically," says Steve Wilhite, Executive Vice President at SE Advisory Services.

"A surprising amount of sustainability value never reaches the bottom line."

The exposure hiding in the supply chain

The largest concentration of both climate exposure and value sits outside a company's own footprint, in its supply chain. Scope 3 emissions make up more than 70% of total corporate emissions on average, which turns traceability into a financial control as much as an environmental one.

The stakes are quantifiable. The World Economic Forum estimates climate hazards could wipe out up to 7% of annual corporate earnings by 2035.

For the largest companies, physical risk alone could cost US$1.2tn a year within decades, before knock-on hits to revenue, demand or supply. Yet only 35% have adaptation plans in place, and just 30% report on them.

Sustainable procurement helps, with about one-third of companies saying such programmes have headed off supply-chain disruptions. Circular procurement and the reuse of secondary raw materials cut energy intensity and input costs while shoring up supply security.

"The upside can extend well beyond operational savings," writes Steve. "In one industrial company's shift to a circular business model, the opportunity was modelled to generate €1bn (US$1.14bn) in incremental revenue."

Digital traceability platforms, meanwhile, let firms replace estimated supplier data with verified figures, capturing commercial opportunities and protecting margins.

What capital markets now reward

Companies with credible, integrated strategies are seen as safer bets, the report finds, drawing stronger investor confidence and, crucially, cheaper debt. Across European capital markets, more than 75% of investors say sustainability performance shapes where they put their money.

The link to capital is concrete. In one SE Advisory Services engagement, verified ESG credentials helped a global manufacturer secure up to €100m (US$113m) in sustainability-linked financing off a single decarbonisation roadmap.

Private-market and equity investors, the report adds, increasingly reward deeply embedded sustainability models with higher valuation multiples. Treated as a measurable performance lever, it concludes, sustainability protects earnings stability while widening access to competitive financing.

The CSO Circle

Capturing the full upside depends on what the report calls the Capability Multiplier, the point at which measurement, governance and digital execution align.

Drawing on the CSO Circle, convened by IESE's Institute for Sustainability Leadership with leaders from AltamarCAM Partners, Barceló Hotel Group, BBVA, CaixaBank, Gestamp, MANGO, Roca Group and Suma Capital, it argues companies must move from basic reporting to active, data-driven management.

For a CFO, that means wiring sustainability metrics directly into capital allocation, board oversight and executive incentives. Integrated digital capability is the enabling infrastructure, cutting the time to collect and validate ESG data by 25% to 40%. Paired with strong governance, it can deliver up to 20% lower energy use in the first year and up to 30% less unplanned downtime.

The CXO Summit

The CXO Summit takes place on 7-8 October 2026 at Convene 155 Bishopsgate, London, bringing together more than 500 C-suite executives for two days of strategic discussion, networking and executive learning.

Designed as a private forum for senior decision-makers, the event spans four dedicated content zones for CEOs, CFOs, CHROs and CMOs, alongside more than 50 expert speakers and four executive workshops.

The agenda explores leadership, AI, finance, people strategy and business transformation through sessions including The Leadership & Strategy Summit, The Future of AI in Marketing, Financing a Sustainable Future, The CEO Summit, The CFO Summit, The AI-Ready Workforce and The Future of People & Skills, offering practical insights into organisational resilience, sustainable growth and cross-functional collaboration.

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