From Italian CFOs and CSOs — Are We Moving Backward on Climate?

Last week, I had the opportunity to meet with CFOs, CSOs, and their teams during a roadshow in Italy, traveling between Milan and Rome. The conversations were insightful and timely.

At first glance, it might seem like the climate and sustainability agenda is slowing down—geopolitical concerns are clearly influencing the narrative (Trump was mentioned more often than the Pope). There’s a noticeable sense of wait-and-see. Yet behind the headlines, most companies are not backtracking. Strategy doesn’t change overnight, and for leading businesses, decarbonisation remains a strategic imperative. It’s not just about climate—it’s about risk mitigation and unlocking sustainable finance opportunities. Yes, decarbonisation is happening.

Here are the key themes that stood out from the discussions:

• No Backtracking but Recalibrating

  Companies aren’t abandoning sustainability; they’re becoming more pragmatic. There’s a growing emphasis on setting realistic sustainability targets—ones backed by realistic roadmaps rather than aspirational goals. This is especially true for companies still working on their transition plans. For the short term, one key question is what needs to be done to preserve business and investors. For the longer term, how can the company prepare for the different scenarios.
  The message is clear: ambition remains, but the approach is evolving.

• Navigating ESG Ratings and Labels

  There’s widespread confusion around ESG ratings and labels. Which frameworks matter? What signals real credibility? Questions around SBTi, alternative standards, and how best to communicate sustainability commitments are top of mind. (I’ve explored this further in recent blog posts—check them out here.)

• Sustainable Finance Remains high in the CFO agenda

  Despite headwinds, CFOs and CSOs continue to see sustainable finance as a powerful lever. High-quality capital is still accessible for companies that demonstrate transparency and authentic commitment. Here though there is a strong need for CFOs and their teams to engage investors to openly discuss on the company is navigating the context and the dependencies.

• Transition Plans as a Business Imperative

  In several sectors (Logistics for example), having a credible transition plan is no longer optional—Besides the regulatory obligation in certain cases, it’s essential for maintaining competitiveness. That said, companies are actively reassessing the pace and phasing of their transition efforts, adapting to operational realities without abandoning direction.

In this evolving context, the alignment between CFOs and CSOs is critical. CSOs need to speak the language of finance, while CFOs must understand the operational and reputational stakes of climate strategy. Effective investor communication is also key. Leading companies are working closely with their Investor Relations Officers to explain how recalibrations align with long-term value creation.

Building and executing a robust transition plan that connects operations, sustainability, finance, customers, and investors is no easy task—but when done well, it creates shared value and strengthens financial performance.

We’ll explore this further in our next blog post.

A personal note

This trip was meaningful for two more reasons:

• I had the honor of attending the ADB’s annual board meeting, where I reconnected with friends and colleagues from both Europe and Asia. The dynamism of Asian stakeholders in climate and transition finance is truly energizing.
• And finally, being in Rome during the conclave made me feel like I was witnessing something historic and special.

I look forward to your feedback,

Fabrizio Palmucci

Founding Partner, Impactivise