Measure, disclosure and certify. The contribution of accountants in the fight against the environmental crisis
Rather than rhetoric, ideologies and political positions, the fight against the environmental crisis requires concrete contributions that generate effective solutions. This also includes accountants.
Vita Ramanauskaité and Eleni Kanelli started a series on sustainable finance at Accountancy Europe. His first two blogs suggest that important contributions can be expected to generate more effective actions by accountants towards the solution of environmental problems.
These contributions are part of wider efforts, of which in past blogs I have made some reviews:
- Revelación corporativa y el medio ambiente
- Los IFRS y el cambio climático
- Financiación del crecimiento sostenible
- Los IFRS y la sostenibilidad
- Finanzas sostenibles
The first blog, titled Sustainable finance: what’s it got to do with accountants? highlights the importance of measurement and notes that accountants can contribute in their daily work in three main ways:
- Corporate reporting: define models, approachs and boundaries. In search of transparency & comparable information.
- Audit: provide independent assurance. In search of reliable reported information.
- Corporate governance: account for, control and supervise checks & balances. In search of effective governance, measuring risk & compliance.
The second blog, titled Radical change to fight our environmental crisis recognizes some important realities:
- Our environment is in crisis, and we have ignored it for too long. We are now pressed to radically change the way we live and do business.
- Business has brought us here, as markets have ignored environmental or social costs to pursue profit. But business can also help get us out, by driving markets towards more sustainable practices.
- Accountants are part of the solution. They can help companies make the right changes to reduce their environmental footprint – and costs. Together, we can harness corporate power to make the necessary shift to a sustainable economy.
When asked “How to bring about radical change?” they focused their response about the accountants on three fronts: (1) Measure, (2) Disclosure, and (3) Certify.
It will be important to link to this current and help make the solutions come true.
Certainly this requires important changes that few are willing to give because they prefer the status quo that benefits them.
Therefore, it must be clear that it is a fight.