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Smart growth
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CFOs need a new profitability and growth mindset.
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Hello, and welcome to Thursday. Here’s your periodic reminder to take breaks from the madness of the nonstop (bad) news cycle. Why not try some light escapist fiction to set your mind at ease, say, Cormac McCarthy’s The Road?

In this issue:

Profit > growth?

Green no more?

Slowing down

Alex Zank, Jesse Klein

STRATEGY

Profitable growth

Illustration: Anna Kim, Photos: Adobe Stock

Finance executives have the ability to control the fate of their organizations—no mysticism or grimoire required. They simply have to chart a course toward profitable growth. But that may require a significant mindset change.

However, that’s a lot easier said than done. To make it (let’s hope) a little simpler, CFO Brew spoke with two finance executives who’ve helped lead their organizations toward profitable growth. They said the switch in mentality from pure revenue growth to a balance of growth and profit is imperative for long-term company health, but also carries with it some distinct advantages.

“You have to invest to grow,” Larry Roseman, CFO of tech company Thumbtack, told us. “I think the key is investing profitably, in profitable growth.”

The big why. With profitable growth comes more flexibility in business decision-making, according to Ben Gammell, president and CFO at fintech Brex. For instance, an organization can more easily acquire another when it has cash to work with.

“I think what it ultimately does for a CFO is it means that we have a lot more control of our own destiny,” Gammell told us.

For more on transitioning to a profitable growth mindset, click here.AZ

Presented By Klarity

SUSTAINABILITY

Canceled ESG sustainability projects

Miragec/Getty Images

We are officially in the find out stage of Trump’s attack on climate investment.

When the Trump administration came into office, to say climate activists were concerned was putting it mildly. But many authorities tempered the dread, predicting that climate advancements and investments might slow but wouldn’t come to a complete halt.

But that optimism may have been…umm, misplaced. New research shows just how much climate advancement is being stymied within the first three months of the Trump administration. And that slowdown could have an impact for CFOs. Delayed solar, wind, and other clean energy projects could disrupt companies’ climate procurement timeline goals, prompting CFOs to reevaluate climate investments in the future.

Bottoming out. Between January and March, 16 large-scale clean energy projects along with other smaller projects, amounting to $8 billion in investment, were abandoned, according to E2, a nonprofit advocacy and research group of climate-conscious business professionals. That’s triple the amount of clean energy investment canceled in the previous three years. In February and March alone, 13 projects were canceled or downsized.

For more on the decline in climate investments, click here.—JK

ECONOMY

Hands over a crystal ball with dollar sign

Anna Kim

The economic warning signs just keep flashing.

The International Monetary Fund recently came out with a fresh forecast for global growth. Its conclusion: After projecting global growth of 3.3% this year and next, it now expects slower growth of 2.8% this year and 3% in 2026. The new projections are also below the 20-year historical average of 3.7% annual growth.

Why the change in just a handful of months? In its report, the IMF blamed a trade war and political volatility, specifically calling out “new tariff measures by the United States and countermeasures by its trading partners.”

“The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity,” per the report.

Click here for more on the IMF’s recession prediction.AZ

Together With HOKA

MARKET FORCES

market forces chart

Francis Scialabba

Today’s top finance reads.

Stat: $570 million and $230 million. Those are the fines the European Union slapped on Apple and Meta, respectively, for violating the Digital Markets Act. They were the first two countries the EU fined for breaking the law it adopted three years ago. (New York Times)

Quote: “We’re going to be very nice and they’re going to be very nice, and we’ll see what happens.”—President Donald Trump, commenting on possibly easing trade barriers to China. (Bloomberg)

Read: If tech giants like Microsoft and Amazon slowed their data center investments, they wouldn’t tell anyone. But there would be signs. (Business Insider)

Dibs on the free ticket: Klarity’s SF Summit 2025 takes place in San Fran on May 14, and the theme is AI for Finance Transformation. Use the code CFOBREW100 to gain free admission.*

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