Erik vanSchie, CFO of Sweco Netherlands, shares his perspective on the crucial role the CFO plays in the transition to a circular economy and becoming a waste-free society. As the most involved and approachable partner with recognized expertise, Sweco designs and develops the cities of the future together with its clients.

Money always plays a big role in circular issues. That is where the role of the CFO often comes into play. His or her vision and policies around circularity therefore have a significant impact on the outcomes.  

Everyone makes countless choices every day. Many choices we make unconsciously. This is not thoughtless, but based on a lifetime of experience where we have "internalized" the things that work well for us. 

In our work, we also make many conscious choices. Looking at business objectives, fitting within the vision and in line with the culture. For a hardened financial person, there is a business case behind every decision. Preferably with multi-year cash flows, discounted at a risk determined discount rate. Or even better: with 'real options valuation' to model possible scenarios.

Within a company that is working on the cities of the future, sustainability is important.This is alive and well with our customers and with our employees. For a CFO, a number of sustainability aspects are completely in the comfort zone. Energy labels,heat pumps and solar panels lend themselves very well to positive business cases.

It becomes more challenging when you start looking at circularity. The importance of this is obvious.Resources are finite and we cannot continue to plunder the planet. But simple financial business cases are not so easy to make here. They need something extra. For me there are two extras: value preserved inspiration.  

Value retention

If we preserve our precious resources by processing them in a reusable way we only 'borrow' them for temporary use. If you were the CFO of the earth, this is the way to keep them on the balance sheet as an asset, even if they are used. And you would not have to depreciate, but value them at 'fair value'.How nice is that: raw materials are then likely to become worth more! So a positive business case where we calculate with a residual value of raw materials.

Inspiration

Working in an environment where sustainability and circularity have an important place gives inspiration. Inspiration is perhaps even more beautiful than value retention and, however intangible, is of untold value. New entrepreneurs can provide great examples of this. Entrepreneurs who make lamps from CD cases.Planters from refrigerators. Sustainable entrepreneurs who think with you and come up with surprising ideas. To improve sustainability little by little. The ROI, 'Return on Inspiration' is high.

In all those daily choices and decisions you make, you can try to quantify and factor in value retention and inspiration. But that feels contrived and complex. I also find it works well to embrace them as aspects that go beyond choices. When you do that consciously you start making different choices. Maybe not always, but often and more often. That also helps improve the atmosphere in the organization. As CFO, you can play a facilitating role in that. It feels good and makes it more fun to be a CF😃.

Sustainability ambitions Sweco

No more waste and no more CO2 emissions by 2035; that is Sweco's sustainability goal. This ambition fits our mission; we design and develop the societies and cities of the future. We make this promise to ourselves and to our clients. We achieve this with more than 15,000 colleagues in Europe, of which 1,500 in the Netherlands.

Every day we help our clients prepare for tomorrow's problems and challenges. We want to become and remain the most respected engineering firm.That means that 10 or 40 years from now, our clients will still be enthusiastic and satisfied with the solutions we come up with for them today.

Get inspired by the white papers in which we share our knowledge on the big themes of our time in our "Urban Insight" program.Or through our OnlineMagazine.

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