In an era marked by market volatility, inflationary pressure and massive investment agendas, corporate treasurers are emerging as critical voices in boardroom decision-making while increasingly having an influence on strategic financial direction.
Speaking at a recent panel on the evolving strategic role of treasury, Rachel Martin (pictured, second from right), group treasurer at FTSE 100 utility Severn Trent, described how her team now operates at the heart of major capital decisions. “We are facing into an incredible period of investment in our sector,” she said, referencing the £15bn Severn Trent plans to deploy over the next five years to tackle climate change, population growth and rising environmental standards. “Our role in treasury is making sure that the funding is in place to be able to deliver that.”
Our job is to protect the margin
This strategic involvement begins even before the board greenlights an investment. “When we were first writing our plan for the next five years, it became apparent that part of that solution was equity,” Martin explained. “We worked to land that equity around 18 months ago to give the board, and our regulator, the confidence we had the balance sheet capacity to support the investment.”
At retail giant Marks & Spencer, group treasurer James Rudolph (pictured, second from left) also sees treasury as a vital enabler of business strategy, particularly in managing risk. “Our job is to protect the margin,” he said, noting the company’s forward-looking FX hedging on goods like clothing before orders are even placed. “If you go into M&S, you can buy a pair of jeans for £19.99. It is important to us that you’ll be able to buy a pair of jeans in six months’ time at the same price and that we can still make money on that.”
We have some very financially experienced board members, and we often look at them as an extension of the team
This proactive approach has shifted how treasury interacts with the board. “The board is very experienced, but I think you have to make the treasury concepts easy for them to understand,” said Rudolph. “You always need to be able to switch between what might be very technical explanations and more generic ones depending on who’s asking.”
Martin agreed, adding that the board had a treasury sub-committee. “We have some very financially experienced board members, and we often look at them as an extension of the team.”
Selim Toker, head of risk solutions at SMBC, observed a broader trend among corporates. “We see that maintaining a credit rating can actually be a key driver of treasury policy,” he noted. “That will absolutely impact your fixed/floating mix, and how much your metrics are allowed to be volatile.”
Martin agreed that investor and stakeholder communications now demanded more visibility and sophistication. “You need to be mindful of your whole group of stakeholders and make sure that you’re meeting their expectations,” she said. “We’re legally required to hold a minimum of two investment-grade credit ratings, and that has a very real impact on our treasury strategy.”
... you need to have a really strong relationship with the C-suite and to be able to influence in the right way
Both treasurers emphasised the need for clear, two-way communication between the board, treasury and senior management. As Martin said: “Ultimately, the board has got the accountability so needs to make sure they’re comfortable with the risk appetite that the group is taking, they are the people who need to sign off on it at the end of the day. So, you’ve got to respect that partner, the governance process and respect the experience that is there.
“At the same time, you need to have a really strong relationship with the C-suite and to be able to influence in the right way, using your technical experience and what you’re hearing from your banks and from investors.”
Philip Smith is editor of The Treasurer. The panel discussion took place at the ACT’s Annual Conference in May 2025.