Accountants can help companies with sustainability strategies: global accounting body
The ACCA will be launching a new professional diploma in sustainability at the end of September
ARMED with a calculator, buried in spreadsheets and stuck in stuffy rooms auditing away – that has been the longstanding stereotype of accountants.
But the industry has been trying to rebrand itself and shed its image as a “boring” profession.
And the Association of Chartered Certified Accountants (ACCA), a global body of accounting professionals, believes that aligning the sector with the burgeoning sustainability movement is key to redefining the profession.
The chief executive of ACCA, Helen Brand, told The Business Times in an exclusive interview that accountants need to be able to apply their technical and ethical competencies to a broader scope, and not just be confined to the field of finance.
“So the profession has to have a fundamental shift in how it remains relevant and how it supports the creation of value and the protection of value in the broadest terms... Even how we talk about value, it’s no longer simply counting dollars,” said Brand.
Value and business success would now have to be measured across many dimensions, including the impact on the natural world, communities and employees.
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The need for accountants to acquire such skills comes amid a global push among regulators to mandate sustainability reporting for companies.
Brand adds that the pace of change in technology and sustainability requirements demands for accountants to broaden their skill sets as they respond to the needs of the market.
Among Asean member states, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam have made sustainability reporting mandatory for listed companies. Malaysia, the Philippines and Singapore have also announced that companies’ sustainability reports have to align with the standards put forth by the International Sustainability Standards Board (ISSB).
For accountants in this region to get up to speed, Brand noted that it is not just sustainability-related skill sets that are important.
A deeper understanding of data analytics and data science, given the challenge of data quality in sustainability reporting, as well as soft skills in managing both internal and external stakeholders so that the business can achieve its strategic outcomes are other crucial skills as well.
Yet, one challenge is the lack of talent with these broad set of capabilities, noted Brand. While awareness levels are high among the industry on the need to upskill themselves, a bigger problem is the “how”. One key lever is education.
To this end, ACCA will be launching a new professional diploma in sustainability at the end of this month. The diploma aims to train accountants with the knowledge and skills in sustainability reporting and assurance, ethics and strategy, said the association in a Wednesday (Sep 4) media release.
The organisation also signed an agreement with the Information Systems Audit and Control Association – a global association of IT professionals – to collaborate and share insights on technology, governance, cybersecurity and internal controls.
It inked a second agreement with the Stewardship Asia Centre to renew their commitments towards corporate stewardship, sustainability, good governance and leadership.
Brand witnessed the signing of the agreements at a gala dinner last week to mark the establishment of ACCA’s Singapore-Malaysia branch 88 years ago in 1936. The guest of honour was Murali Pillai, Minister of State for Law, as well as Transport.
In addition to having the right talent, corporates in this region have to recognise the importance of sustainability reporting, Brand added.
While not every Asean market has mandated sustainability reporting or require it to be aligned with ISSB standards, companies in this region have shown their intention to progress on this front.
However, complexities around adopting these standards, concerns about data quality and challenges in setting the right strategy are some roadblocks corporates face.
Brand noted that accountants who have been equipped with sustainability-related capabilities can play a very important role in supporting the business outcomes that are required.
While regulation can provide a useful boost in accelerating the rates of sustainability reporting in this region, she said that it should not be seen as a matter of just compliance.
“It’s about business change, and ultimately, businesses will only be sustainable, and the planet will only be protected, and societies will only be successful if we change the way in which we do business, and if we measure success across many dimensions,” Brand added.
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