Accountants play a leading role in meeting climate action business goals
The U.S. Securities and Exchange Commission (SEC) is introducing new requirements to standardize climate-related disclosures for investors. Expected to roll out in fall 2023, the new rules will require companies to disclose risk and emissions information across the value and supply chains. Several organizations, such as the Task Force on Climate-related Financial Disclosures (TCFD) and International Sustainability Standards Boards (ISSB) already have developed frameworks and standards to serve as a basis for reporting.
Many businesses are committed to meeting sustainability goals and creating climate change action plans that align with their objectives and values. Teams can model plans and draw inspiration from resources like the United Nations climate work and Sustainable Development Goals (SDGs).
Count on accountants to help get it right
Climate change can present significant implications for companies and investors. Companies may face increasing regulatory scrutiny, litigation and reputational risks if they fail to properly disclose or address their climate-related risks. Transparency and proper reporting also help build trust with partners and stakeholders.
Often, an organization’s accounting team is best equipped to develop comprehensive reports that comply with the latest regulations. Corporate accountants should be ready to learn and lead as businesses figure out how best to leverage their teams to address environmental, social and governance (ESG) issues as part of a bigger, actionable climate strategy.
Your accounting role can contribute to climate solutions for your company by:
- Helping to develop and implement internal controls for data collection and reporting.
- Reviewing and auditing emissions data. Assessing climate-related risks and opportunities, such as changes in regulations, physical and transition risks, and providing assurance regarding the related disclosures.
- Integrating climate-related information into financial reporting, such as in management’s discussion and analysis (MD&A) and in their financial statements.
- Providing guidance on how to clearly present disclosure and regulatory information.
- Understanding the key concepts, metrics, and reporting requirements in regulatory frameworks and being a resource for leadership.
Accountants can also utilize dedicated resources and learning through the Sustainable Accounting Standards Board (SASB) which outline standards across multiple industries as well as more education available from the Association of International Certified Professional Accountants (AICPA).
Utilizing resources
If you are ready to develop your expertise, consider pursuing certifications or courses focused on sustainability reporting or climate accounting. You can enhance your understanding of concepts like carbon accounting, greenhouse gas emissions accounting, and climate-related financial disclosures to make an even bigger impact on your organization’s sustainability and climate efforts.
The Leeds School of Business offers the Climate Action for Business program, a two half-day business executive education course delivered via Zoom that teaches you the cutting-edge skills and perspective needed to lead in this changing environment. Reserve your spot for the session on August 22-23.