• About
  • Subscribe
  • Contact
Wednesday, April 30, 2025
    Login
FutureCFO
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
FutureCFO
No Result
View All Result
Home Business Insights ESG and sustainability

Accountants poised to play key role in sustainability reporting

FutureCFO Editors by FutureCFO Editors
July 8, 2024
Photo by Pixabay: https://www.pexels.com/photo/top-view-photo-of-clover-leaves-158780/

Photo by Pixabay: https://www.pexels.com/photo/top-view-photo-of-clover-leaves-158780/

Accountancy and finance professionals are well-placed to take on the role of sustainability reporting, according to a joint study by digital automation and energy management company Schneider Electric and the Institute of Singapore Chartered Accountants (ISCA).

According to the "Counting to 3: Navigating Singapore’s Emissions Journey Together" report, as corporate reporters, accountants already have fundamental skills in financial reporting.

They are also familiar with applying accounting standards and ensuring that reporting is transparent, verifiable, comprehensive, independent, and fair.

In addition, accountancy and finance professionals are proficient in data collation and analysis to provide meaningful explanations for informed decision-making. These skillsets are transferable to sustainability reporting, including Greenhouse Gas scope 3 reporting.

The study, which looks into the perspectives of over 500 of Singapore’s senior business leaders involved in sustainability strategies for their organisation, comes ahead of new requirements for all listed companies and large non-listed companies in Singapore to make climate-related disclosures from 2025 and 2027, respectively.

It found that 94% of Singapore organisations are not fully measuring and analysing Scope 3 emissions, thereby affecting their readiness to report.

Respondents cite the correlation between greater seniority and greater knowledge exists due to senior executives having increased access to briefings on emissions management and strategies.

However, the importance of knowledge being equally distributed across all functions and divisions within organisations was also emphasised, as change management programmes require both strategic understanding coupled with capability to implement the step changes needed for Scope 3 reporting requirements in Singapore.

Kang Wai Geat

"Sustainability is a megatrend that is reshaping the accountancy profession," says Kang Wai Geat, divisional director, Professional Standards at ISCA. "Increasingly, organisations are turning to the accountancy profession for sustainability reporting and assurance. To take full advantage of the opportunity to help organisations advance their emissions agenda, accountants must upskill and reskill to keep up with the latest developments in sustainability."

Knowledge deficits linked to inaction

While 76% of business leaders say they have completed feasibility studies to better understand their organisation’s readiness to measure, report, and manage its Scope 3 emissions, only 6% say their organisation is fully measuring and analysing Scope 3 emissions, lagging significantly behind Scope 1 (52%) and Scope 2 (30%) emissions.

As a result, the report says confidence in meeting their Scope 3 emissions targets is significantly lower, with only 27% believing these are highly achievable, compared to 40% for Scope 1 and 31% for Scope 2 emissions.

Leaders from larger businesses are significantly more likely to indicate they have set targets for Scope 3 (54%) compared with those at small businesses at 31%.

In further findings, only 32% believe their organisation’s net zero targets are achievable, but in a show of optimism 64% of those whose organisations have not yet set emissions targets believe they should have done so. Business leaders who adopted science-based targets (SBTis) were more likely to drive meaningful action within their organisations, helping define a clear and credible path to sustainability success.

Four groups of organisations

The report identifies four groupings of organisations in Singapore in relation to progress around managing Scope 3 emissions and the degree of management required: High Adopters (10%), Moderate Adopters (30%), Low Adopters (38%), and Emerging Adopters (22%).

From this analysis, the industries in Singapore identified as containing the highest proportion of High and Moderate Adopters combined are Consumer Goods, Energy & Mining, Healthcare & Pharmaceuticals, Financial Services, and Engineering & Construction.

Key barrier to progress

Overall, a lack of human and financial resources, commercial motivation, and access to fit-for-purpose technological infrastructure are highlighted by respondents as the top barriers to progressing Scope 3 emissions reduction agendas and initiatives.

However, there are differences in impact, based on segment status. For instance, while High Adopters and Moderate Adopters identify a lack of human resources or expertise as the biggest barriers to reducing Scope 3 emissions, Low Adopters and Emerging Adopters cite a lack of technological infrastructure as the biggest.

Related:  Audit coverage of AI-related risks expected to grow, Gartner says
Tags: accounting professionCFO strategyISCASchneider Electricsustainability reporting
FutureCFO Editors

FutureCFO Editors

No Result
View All Result

Recent Posts

  • Modernising Days Sales Outstanding (DSO) for 2025
  • A Day in the Life: Shelly Maneth from Red Hat Asia Pacific
  • Singapore Inc: Expanding horizons in ASEAN and beyond
  • Technology essentials for the modern CFO
  • Transforming budgeting through automation

Categories

  • Artificial Intelligence
  • Audit and Compliance
  • Automation
  • Big Data
  • Blockchain
  • Business Applications
  • Business Insights
  • Case Studies
  • Cloud, Platforms and Ecosystems
  • Competencies and Capabilities
  • Digital Transformation
  • eBooks and eBriefs
  • ESG and sustainability
  • Finance Accounting and Reporting
  • Future Technology
  • General
  • Infographics
  • Leadership and Roles
  • Mergers and Acquisitions
  • Operational Accounting and Control
  • Operations
  • Polls and Surveys
  • Resources
  • Risk and Regulation
  • Strategies and Tactics
  • Tax Management and Optimization
  • Technology
  • Treasury and Cash Management
  • Videos/Tutorials
  • Webcasts/Podcasts
  • White Papers

Strategic Insights for Finance Executives

FutureCFO.net is about empowering the CFO and the Finance Team to take on the leadership position in the digitalization of the enterprise. It's more than just a portal for the exchange of industry best practices, it is about creating and growing a community of finance professionals able to share learned experiences, providing a platform for the current and next generation of finance leaders and professionals.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO
  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Subscribe