In recent years, the role of treasurers and CFOs has significantly evolved. CFOs are now defined as more of a chief future officer, expanding beyond traditional financial management responsibilities.
Now global economies are grappling with the need to combat climate change and transition to a net-zero economy. In this world, treasurers and CFOs have emerged as influential players by demonstrating their strategic value and providing critical insights that contribute to the organisation’s overall transition plan – I would, in fact, call them chief value officers, CVOs.
As with every investment proposal, sourcing the funding plays an important role in ensuring the viability of a project. Similarly, with net-zero transition and sustainability linked plans, treasurers and CFOs need to understand and educate themselves not just on the availability of various instruments, but also on the merits of such plans and how to explain and report them. This is where the role of treasurers and CFOs expands into value creator and educator to the entire organisation.
In Oman, Vision 2040 serves as a comprehensive roadmap for sustainable development across the various sectors within the economy, being predominantly a fossil fuel economy. Diversification is a key success factor for the vision, which includes developing sectors such as tourism, manufacturing, logistics and green hydrogen.
ASYAD Group, being a main player in the country’s logistics sector and a major enabler for its Vision 2040, has an ever-mounting role in diversifying Oman’s economy and attracting foreign direct investment. As such, the role of ASYAD’s treasury and CFO in unlocking the group and country’s value proposition by aligning financial objectives with long-term sustainability goals has never been so important.
The group’s exposure to a wide variety of shipping fleets – many of which are running on conventional fuel and carry crude and refined oil and gas products – presents a live example where ASYAD’s treasury and CFO are helping with the change management culture among their operational and commercial peers. The transitional journey is from the bottom up, starting with the reporting aspect of the transitional phase and leading into the viable funding solutions to these plans – which are embedded into the group’s business plan.
Treasurers are able to set an example to other functions within their organisation and contribute to the global effort to combat climate change while fostering sustainable economic growth
Historically, treasurers have always held the most commercial role within the finance function. In playing an ambassador role to the organisation’s investors and lenders, they are close to the business. And this role has significantly evolved into 'transition to net zero' champions, empowering them to steer companies towards sustainability.
If there was ever a time for treasurers to claim a rightful seat at the decision-making table, it is now. They are able to set an example to other functions within their organisation and contribute to the global effort to combat climate change while fostering sustainable economic growth.
Treasurers, alongside the CFO, can ensure that their voices are heard, and their organisation takes concrete action to pursue the 2050 net-zero goals through their proactive engagement. Their financial acumen, risk management expertise, strategic insights, and ability to tap the market with lenders and investors to raise green funds will be instrumental in securing a sustainable and resilient future.
Muhsin Alrustom is group chief financial officer of ASYAD
This article was taken from Issue 3, 2023 of The Treasurer magazine. For more great insights, members can log in to view the full issue. If you're not an ACT member, you can sign up for eAffiliate membership.
