Even as world leaders’ attention remains focused on sustainability in the weeks following the 26th UN Climate Change Conference of the Parties (COP26), organisations and individuals are also prompted to take a deeper look at how their actions impact the environment.
In support of climate action and years of advocacy on sustainability aligned to the United Nations’ Sustainable Development Goals (UNSDGs), ACCA (Association of Chartered Certified Accountants), unveiled its new report, Climate Action and the Accountancy Profession: Building a Sustainable Future. Containing insights from over 3,000 accountants and finance professionals from the corporate, public, financial services.
“The report revealed that 52 percent believe climate regulations will have the biggest impact on organisations over the next five years, yet only 15 percent report that their organisations have set targets to get to net zero by 2050. Further, only 23 percent integrate climate key performance indicators (KPIs) into their business strategy and/or risk frameworks,” said Sharath Martin, Senior Policy Consultant for ACCA for ASEAN and ANZ.
“In Malaysia, only 24 percent of respondents indicate that their organisations are willing to invest much more in addressing climate change over the next three to five years, which is significantly lower than the global average of 38 percent. These findings, in light of the global move towards climate action, tells us this is an opportune time for organisations to take a closer look at the way they operate.”
To help bridge these gaps, the report outlines key steps accountants should take on climate action. These include supporting boards and executive leadership to build net zero transition plans, leveraging on science-based targets, and prioritizing ESG and climate KPIs in strategic business decisions, among others.
Laying the foundations for long-term impact, ACCA signed an MoU with the UN Global Compact Network Malaysia & Brunei (UNGCMYB) to raise awareness and improve skills in areas such as sustainable finance, and create a pipeline of sustainability advocates amongst finance and accounting professionals. Over time, this will also aid in the effort to align organisations’ financial strategies with the UNSDGs, and pave the way for ACCA and UNGCMYB to collaborate on high-level support policy and research.
To further support the transition for SMEs, ACCA also developed a SME Sustainability Playbook with Chartered Accountants Australia and New Zealand (CA ANZ), presenting the beneficial impact of sustainable actions and practical steps for embedding sustainable practices within SMEs.
Casting its net even wider, ACCA also works from the ground up, remembering that individual actions are important to protect and preserve the planet’s limited resources.
