The Association of Chartered Certified Accountants (ACCA) identified the importance of knowing how to navigate the sustainability agenda among finance professionals in the road to creating a positive impact in tackling various issues.
Such concerns include climate change, social inequality, and a widespread lack of trust, ACCA says.
Professional accountants are expected to be aware how they can make a difference to build a better world that works for everyone, even if it can be hard to put one's finger on how to put that knowledge into practice.
ACCA says sustainable organisations that create long-term value for society, as well as financial value for their stakeholders, will be the bedrock of the future global economy.
Yet despite setting ambitious non-financial goals, including net zero targets, many organisations today are still overly focused on short-term, financial metrics, and are struggling to transition to more sustainable business models.
According to a joint survey by ACCA, IFAC and PwC, almost half of senior professional accountants globally admit that their organisation has yet to produce a plan for reducing its carbon emissions, with nearly 70% of those without an emissions plan saying their organisation has no intention of developing one.
Driving the agenda
Driving the sustainability agenda within the organisation is likely to depend on the nature of the company, as well as to the role of financial professionals within it.
Nevertheless, accountants have many opportunities to enhance the sustainability performance of their organisations during their daily work.
For example, ACCA cites using connected sustainability and financial information to build a ‘value case’ for investment that supports colleagues to develop sustainable products and services.
Finance professionals can also help to ensure that sustainability considerations are factored into spending plans and procurement decisions, as they can play an active role in helping to set targets and monitoring the organisation’s performance against those targets.
Another way to have a positive impact is by actively contributing to the sustainability reporting process. Finance professionals can help their organisations to capture the key non-financial data that will enable it to comply with new reporting standards and provide trusted information to stakeholders. What's more, auditors can develop expertise in the assurance of sustainability information.
