Development of a Conceptual Maturity Model for Sustainable Financial Steering

The increasing integration of environmental, social, and governance (ESG) considerations into corporate strategy, regulation, and capital markets has significantly expanded the responsibilities of finance functions. Finance is no longer limited to financial reporting and capital allocation but increasingly acts as a central enabler of sustainable corporate steering. Despite this development, existing sustainability maturity models rarely focus explicitly on the financial steering perspective, and to the best of the authors knowledge, no comprehensive maturity model exists that systematically integrates ESG considerations across core financial processes within the CFO function. This thesis addresses this gap by developing and validating a Sustainable Financial Steering Maturity Model (SFS-MM) that assesses the degree to which sustainability is embedded within financial governance, decision-making, and performance management structures. The SFS-MM conceptualizes sustainable financial steering across six core finance domains: Accounting & External Reporting, Controlling & Financial Planning, Risk Management, Treasury & Finance, Mergers & Acquisitions (M&A), and Stakeholder Communication. Each domain is further structured into clearly defined subdomains that reflect key financial responsibilities. Across these domains, five maturity levels describe a progression from ad hoc and compliance-oriented practices toward fully integrated, strategically aligned, and optimized financial steering. The maturity logic emphasizes the integration of sustainability into established financial systems, processes, and governance mechanisms rather than the creation of parallel ESG structures, thereby enabling a structured and stepwise development of sustainable financial steering capabilities. Higher maturity levels are characterized by quantitative integration into investment valuation, risk assessment, capital allocation, and stakeholder-oriented financial communication. Methodologically, the study follows a Design Science Research (DSR) approach. The model was developed conceptually and iteratively refined through two rounds of qualitative expert interviews with senior finance professionals from different industries. The empirical material was analyzed using qualitative content analysis according to Mayring, combining deductive validation of predefined model elements with inductive refinement where necessary. This iterative validation ensured both conceptual rigor and practical applicability. The validated SFS-MM provides a structured and operational framework that enables organizations to assess their current level of sustainable financial steering, systematically identify development priorities, and support a stepwise transformation of the finance function. By explicitly linking ESG considerations to financial governance, investment logic, risk structures, and capital market communication, the model advances the conceptual integration of sustainability into financial management and provides actionable guidance for transforming corporate finance functions in sustainability- driven environments.