Accounting bodies call on profession to address climate change
The world’s accountants must put their skills to use to help businesses fight climate change, the UK’s top accounting bodies have said.
As part of The Prince’s Accounting for Sustainability Project (A4S) Accounting Bodies Network, which collectively represents over 2.5 million accountants worldwide, the five major UK based accounting bodies are today publishing a declaration calling on the profession to put sustainability and the fight against climate change at the forefront of its work.
The accounting bodies said their members had 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.
Tackling climate change needs practical measurement and management, and accountants are key to helping businesses build sustainability into their working practices, commercial relationships and supply chains, the accountancy leaders explained. This is particularly important with the 26th UN Climate Change Conference of the Parties (COP26) scheduled to take place in the UK this year.
An accountant’s role should demonstrate the risks to business posed by climate change, such as the impact of flooding or the effect of drought on the price of crops needed in the supply chain.
J Bruce Cartwright, Chief Executive of ICAS, said:
“There are dramatic implications for failing to tackle climate change – environmental, social and economic. It is our future that is at risk, and the urgency at which we are required to act must remain front of mind.”
“ICAS is working with fellow accountancy bodies to act now to limit the negative effects of climate change. As a profession we can do this by utilising our professional skills and expertise to support the organisations that we work with to tackle the climate crisis. Our individual actions, collectively, have the ability to make a difference.”
The Call to Action asks accountants across the world to:
- integrate climate change risk into organisational strategy, finance, operations, and communications.
- support sustainable decision-making
- provide sound advice and services.
As part of the Call to Action, the global accounting bodies have pledged to provide support to help their members fulfil this role.
Accountants have a crucial role to play in the fight against climate change because:
- the transition to a net zero carbon economy will rely on adapting economic policy and associated market mechanisms. Accounting practices are central to achieving both.
- accountants must act on economic, social and business risks, and climate change is one of the biggest we face.
- professional accountants have a responsibility to act in the public interest, which must now include helping organisations to address climate change.
In the UK the accountancy body chief executives who have signed up to the statement are:
- Mark Farrar, Chief Executive, AAT (Association of Accounting Technicians)
- Helen Brand OBE, Chief Executive, ACCA (Association of Chartered Certified Accountants)
- Barry Melancon, CEO, Association of International Certified Professional Accountants (the unified voice of AICPA and CIMA)
- Michael Izza, Chief Executive, ICAEW (Institute of Chartered Accountants in England and Wales)
- J Bruce Cartwright, Chief Executive, ICAS (Institute of Chartered Accountants of Scotland)
The full list of global bodies which have signed up to the Call to Action is:
- Association of Accounting Technicians (AAT)
- Association of Chartered Certified Accountants (ACCA)
- Association of International Certified Professional Accountants (the unified voice of AICPA and CIMA)
- Chartered Accountants Australia and New Zealand (CAANZ)
- Chartered Accountants Ireland (CAI)
- Consiglio Nazionale dei Dottori commercialistie degli Esperti Contabili (CNDCEC)
- CPA Australia
- CPA Canada
- Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Institute of Chartered Accountants of Scotland (ICAS)
- International Federation of Accountants
- Japanese Institute of Certified Public Accountants (JICPA)
- Regnskap Norge/Accounting Norway
Read the full Call to Action: www.accountingforsustainability.org/abn-climate-action