Skip to main content

47% of Asia Pac businesses have no emissions plan in place despite the climate emergency, reveals new report from ACCA, IFAC and PwC

          



As world leaders gather for COP 28, ACCA (the Association of Chartered Accountants), IFAC (the International Federation of Accountants) and professional services firm PwC released a new report: The  role of the CFO and finance function in the climate transition: driving value and sustainability, based on a survey of 1,000 senior finance professionals around the world.

 

The research reveals 47% of respondents in the Asia Pacific region have yet to produce a plan for reducing their carbon emissions. Alarmingly, 69% of those respondents without an emissions plan say they currently have no intention of developing one. This compares with global figures of 46% of respondents who have yet to prepare an emissions plan and 70% of those say they currently have no intention of developing one.



 

The report also says that that involving CFOs and finance teams in the emissions reduction planning is likely to accelerate progress. They should embrace this because, although they may not always be the ‘owner’ of the sustainability agenda, CFOs can embed climate transition priorities into business planning and resource allocation, and enable high-quality sustainability reporting internally and externally.

 

The research recommends that finance teams need to develop the right skills and expertise to continue increasing their contribution to a climate transition. For CFOs, balancing the short-term operational priorities of the finance team whilst simultaneously upskilling and equipping the team to support the wider organisation’s net zero initiatives longer term must now be a critical imperative.

 

Helen Brand, chief executive of ACCA said: ‘The accountancy and finance profession can enable organisations to achieve their net-zero ambitions in a fair and inclusive way. They can also support the just transition to a low-carbon economy by helping their organisations to seize the associated business benefits. As COP28 begins, this report is a call to action for professional accountants everywhere to play their part in helping their organisations to reduce their carbon emissions and support the climate transition.’

 



Asmaa Resmouki, president of IFAC, commented: ‘The expertise of accounting and finance professionals in combatting climate change is absolutely essential if we are to make the progress the planet so desperately needs.’

 

‘This report corroborates IFAC’s prior research into corporate disclosures on emissions targets and transition plans for achieving them. Companies need to improve the decision-usefulness of their transition plans and how they communicate them to stakeholders.’

 

David Russell, finance transformation leader, PwC, added: ‘This report highlights a critical gap where some businesses lack a clear roadmap to meet their emissions targets and the ability to measure and report progress against their goals. It’s imperative for finance leaders not just to drive the change towards sustainability but also to build trust in the reporting of progress towards sustainability goals. CFOs can play a pivotal role in integrating environmental considerations into strategy, planning and reporting – ensuring that businesses not only contribute positively to the climate agenda but also adapt and thrive in a rapidly changing economic landscape.’

Comments

Post a Comment

Popular posts from this blog

Economic confidence among finance professionals edges higher globally despite big fall in North America

                                            The latest ACCA (the Association of Chartered Certified Accountants) and IMA ®  (Institute of Management Accountants)  Global Economic Conditions Survey (GECS) suggests that confidence among accountants and finance professionals edged slightly higher in Q2 2024 and is just above its historical average.  For chief financial officers (CFOs), all the key global indicators rose, with sharp gains evident in the New Orders and Capital Expenditure indices.   There were some notable regional differences . Western Europe-based accountants reported another decent increase in confidence as the euro area and UK economies continue to stage recoveries. Even Asia Pacific saw a small rise off the back of a huge gain previously, and the New Orders Index increased strongly. The region is benefitting from improvements in the global economy, including in the manufacturing sector and the upward moving technology cycle. However, North America’s financial professio
Post a Comment
Read more

Optimistic accountants embrace AI as profession shows desire to learn and adapt

   A survey among members of ACCA (the Association of Chartered Certified Accountants) sees a range of key organisational benefits in adopting digital technologies including flexibility/adaptability, quality of products and services, sustainability performance, transparency and regulatory compliance (72%).   However, The  Digital Horizons  survey – which garnered 1,074 responses from ACCA members across the globe – noted that financial professionals still see the main benefit of technology as offering efficiency/process improvements: 52% ranked efficiency, internal process optimisation or cost savings in their top three objectives when adopting a new technology.    Only 18% included competition-related reasons, such as responding to customer demands, enhancing market insights, introducing 24/7 capabilities, or maintaining competitive advantage.   Cost remains the top challenge when adopting technology, but organisational culture also remains a critical factor in successful adoption.   
Post a Comment
Read more