#203 Counting More Than Cash: Can CFOs Handle Human Value? with Arjan Udding, Director at Impact Institute and Werner Schouten, Director, Impact Economy Foundation

#203 Counting More Than Cash: Can CFOs Handle Human Value? with Arjan Udding and Werner Schouten

In this episode of the GrowCFO Show, host Kevin Appleby engages in a thought-provoking discussion with Arjan Udding, Director Impact Institute, and Werner Schouten, Director Impact Economy Foundation. The conversation centres around the evolving role of the Chief Financial Officer (CFO) in the realm of sustainability.

The guests make a compelling case for the CFO to transition into a Chief Value Officer (CVO) role, emphasizing the need to balance the traditional focus on financial value with equal consideration for social, human, and natural value creation. They delve into the importance of impact accounting, a methodology that quantifies non-financial value and integrates it with financial metrics. Arjan and Werner share examples of European institutions, such as Rabobank and Triodos, that have successfully adopted impact accounting to inform their decision-making and long-term investment strategies.

Throughout the discussion, the speakers highlight the need for a harmonized, accessible language for impact reporting. This, they argue, is crucial for driving sustainable business practices and investment decisions across organizations of all sizes, as it enables a comprehensive understanding of the interconnected environmental, social, and governance (ESG) factors that shape a company’s long-term viability and societal impact.

Key topics covered include:

• Introduction and background of the guests, Arjan and Werner
• Debate on whether the finance leader should be called a CFO or CVO
• Role of financial metrics in sustainability and the need to expand them
• Integration of financial and non-financial metrics through impact accounting
• Examples of companies adopting impact accounting
• Challenges and opportunities in implementing impact accounting
• The broader impact of impact accounting beyond just ESG
• Conclusion and call to action for CFOs to embrace the role of Chief Value Officer

Links

• Arjan Udding on LinkedIn
• Werner Schouten on LinkedIn
• Kevin Appleby on LinkedIn
• GrowCFO Mentoring

Timestamps

• 0:0:00 – 0:0:19 Introduction and background of the guests 
• 0:0:19 – 0:1:35 Debate on whether the finance leader should be called a CFO or CVO 
• 0:1:35 – 0:3:15 The need to redefine value beyond financial value 
• 0:3:15 – 0:6:00 Expanding financial tools to include social and environmental value 
• 0:6:00 – 0:7:30 The CFO’s role in owning the balanced scorecard 
• 0:7:30 – 0:12:30 Integrating financial and non-financial metrics through impact accounting 
• 0:12:30 – 0:16:00 Examples of companies adopting impact accounting 
• 0:16:00 – 0:20:00 Challenges and opportunities in implementing impact accounting 
• 0:20:00 – 0:22:30 The broader impact of impact accounting beyond just ESG 
• 0:22:30 – 0:24:00 Conclusion and call to action for CFOs to embrace the role of Chief Value Officer

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