Global accounting leaders call on profession to help 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.

Mark Farrar, Chief Executive, AAT, said: "As influential members across every sector in society, professional accountants are in a unique position to help effect positive action in a collective effort. We have both a responsibility to act in the public interest, and the skills and expertise to help deliver meaningful change. We encourage AAT's 130,000 members worldwide to play their own part in taking action, helping the organisations they work with to respond to climate change with the urgency and scale required."

Helen Brand, ACCA Chief Executive, 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."

Barry Melancon, CEO of the Association of International Certified Professional Accountants, said: "The accounting profession has long focused on assessing and managing financial risks. However, the global risks we are seeing today, in particular environment-related risks, are pushing our profession to expand its remit. As core members of almost every business, government, and non-governmental organisation, accountants are ideally positioned to help organisations assess and manage these new risks. Accountants have an important role to play improving an organisation's integrated thinking and decision-making capabilities to promote responsible business practices, improving outcomes for both stakeholders and our environment."

Michael Izza, ICAEW Chief Executive, said: "As we face the climate emergency head on, it's crucial we Chartered Accountants use our unique 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."

J Bruce Cartwright, ICAS Chief Executive, 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."

Watch leading accounting bodies discuss sustainability and the accountant's role.

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.