Balancing Sustainability & Financial Performance: A Qualitative Study of CFO and CSO Perspectives on Investment Decision-Making in Organizations

Abstract

Regulatory pressures (e.g., CSRD) and stakeholder expectations, steer organizations to integrate sustainability into investment decision-making. This integration creates a complex landscape where financial logics must coexist with sustainability logics, often leading to structural tensions between short-term profitability and long-term strategic benefits. Central to navigating this balance are the roles of the CFO and the CSO. This study investigates how organizational design and managerial roles influence the integration of financial performance and sustainability objectives within strategic investment decisions by analyzing how companies balance quantitative financial metrics with qualitative sustainability considerations. A qualitative research design was employed, utilizing seven semi-structured interviews with eleven respondents. The sample consisted of CFOs, CSOs and individuals in combined roles from large Nordic organizations, providing a comparative view across three organizational structures. The findings show that while professional backgrounds shape initial perspectives, CFOs increasingly view sustainability as a strategic value driver. Organizations adopt a “both/and” approach, treating sustainability as a "licence to operate” rather than just a cost. Structurally, while a CSOs Top Management Team presence provides legitimacy, a strong institutionalized culture can compensate for its absence. Multiple Criteria Decision-Making models, like carbon pricing, further rationalize this balance by reducing subjectivity. Lastly, hybrid CFO/CSO roles streamline integration but increase the individual’s burden in managing competing logics.