Leading UK accounting bodies are spearheading a global call to action urging accountants to put sustainability and the fight against climate change at the forefront of their work
The accounting bodies said their members have a critical role to play to help effect meaningful change because of their expertise with advising businesses about risk management and their responsibility to act in the public interest.
Recommendations include committing to providing advice and services as organisations adopt plans for climate change mitigation and adaptation.
They also recommend wider use of reporting frameworks such as the International Integrated Reporting Council (IIRC) and the Task Force on Climate-related Financial Disclosures (TCFD).
It is also important to integrate climate change risk into organisational strategy, finance, operations and communications; and to support sustainable decision making.
ICAEW, ACCA, AAT, ICAS and CIMA/AICPA, are the UK signatories to a declaration which includes eight actions accountants need to take to respond to the climate emergency. In total, 13 chief executives from 14 accounting bodies have signed the call to action.
The statement includes commitments to support their members with training, advice to governments and action on regulation, and says they must act now ‘to help the organisations they work with respond to climate change with the urgency and scale required.
‘Better disclosure will facilitate more informed decision making while enabling market forces to drive efficient allocation of capital and support a smooth and just transition to a net zero greenhouse gas emissions economy.
‘Our profession can play an important role in ensuring transparency and appropriate disclosure around climate related risks and opportunities, which in turn will help to maintain financial stability.’
Michael Izza, chief executive of ICAEW, said: ‘As we face the climate emergency head on, it’s crucial we chartered accountants use our position as advisers to business and policymakers to make the case for sustainability.
‘Chartered accountants bring practical skills like measurement and management to the table, and can work with business to build green policies into their working practices.
‘We need to make this a decade of transition for business; failure to make this move will make the inevitable adjustments required much more difficult.’
Helen Brand, chief executive of ACCA, said: ‘This is a call to action not just for accountants, but also for the professional bodies of which they are members – we all have an immense role to play here, and alongside my colleagues we all sign up to three proactive commitments that will help our members and future members rise to the challenge.’
Earlier this month the Financial Reporting Council (FRC) announced a major review of how companies and auditors assess and report on the impact of climate change.
They are all members of the Prince’s Accounting for Sustainability (A4S) accounting bodies network, which represents over 2.5m accountants and students globally, and include representatives from Australia, New Zealand, Ireland, Canada, Italy, Germany, Norway and Japan.
