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Accountants have a big role in enabling climate action
A recent survey commissioned by Boston Consulting Group found that the pandemic is heightening environmental awareness, with 70 per cent of survey respondents stating that they are now more aware than before Covid-19 that human activity threatens the climate and that the degradation of the environment, in turn, threatens humans.
As trusted advisers to governments and businesses, chartered accountants should be in the driver’s seat to help organisations make sustainable and long-term contributions to the fight against climate change. Through education, consultation, and measurement of businesses’ sustainability agendas, accountants can create a new generation of climate leaders that automatically infuse sustainability in their work and have a drive to think and do “green”.
Many business leaders still view sustainability as a “nice to have” rather than integral to the way they do business. But sustainability can affect elements such as supply chains and natural resources, which when disrupted, could deeply impact the continuity of businesses. Sharing the business risks posed by climate change, such as its impact on supply chains, is an important first step accountants can take to convince businesses to embark on a sustainability journey.
Accountants can help business leaders recognise how to pivot their business models to be more sustainable, and why this is important for the future to ensure resilient supply chains and connect with more eco-conscious consumers. Beyond increasing awareness, taking action to adopt green policies and regulations can be challenging as there is no one-size-fits-all solution for every business. While an organisation might see the merits of going green, it may not know how to do so.
CONVINCING STAKEHOLDERS
As data analysts, accountants can help examine data sets and translate them into insights which can support the overall business strategy and objectives. Business leaders can use these insights to drive their visions for sustainability and create clear strategies and overviews of potential opportunities and challenges. Measuring success the right way is important in any sustainability journey. Accountants should help businesses benchmark their progress against appropriate environmental, social and governance (ESG) reporting metrics and identify areas where they can improve.
As trusted advisers and partners for business, accountants should educate, provide direction and help measure success to support businesses and cultivate a virtuous cycle of sustainable change.
Written by Michael White