Chief financial officers and finance teams are now regarded as essential to building climate resilience through risk-based planning and sustainable business strategies.
This is following a recent report by the Association of Chartered Certified Accountants that revealed a concerning situation on organisational preparedness against climate disruptions.
By championing transparency in emissions targets and transition plans, ACCA says finance professionals play a critical role in reducing carbon footprints and advancing net-zero goals, ultimately supporting a fair, inclusive, and climate-resilient future.
According to ACCA's study, businesses and other organisations are not prepared for weather-related disasters, with out-of-date business continuity plans failing to reflect the frequency of disruption of climate-related events.
Only 20% of businesses and other organisations surveyed identify climate-related risks across their operations, and a mere 17% regularly rehearse their response to major disruptions. Meanwhile, 25% have no mechanisms in place to build resilience at all.
According to ACCA, the escalating environmental threats demand comprehensive preparation measures, and their survey reveals that climate adaptation planning is still not receiving the urgent attention it requires. The association calls for organisations to take decisive action to protect both their future and the communities they serve.
This is because resilience was revealed as not a priority for organisations, with two-thirds of respondents not investing adequately to address the physical risks posed by climate change, and only 37% planning to increase spending in this area.
