As part of The Prince's Accounting for Sustainability Project (A4S) Accounting Bodies Network, which collectively represents over 2.5 million accountants and students worldwide, 14 major 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.
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.
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."
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
The full list of global bodies that have signed up to the call to action is:
- Association of Accounting Technicians (AAT)
- Association of Chartered Certified Accountants (ACCA)
- Association of International Certified Professional Accountants (the unified voice of AICPA and CIMA)
- Chartered Accountants Australia and New Zealand (CAANZ)
- Chartered Accountants Ireland (CAI)
- Consiglio Nazionale dei Dottori commercialistie degli Esperti Contabili (CNDCEC)
- CPA Australia
- CPA Canada
- Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Institute of Chartered Accountants of Scotland (ICAS)
- International Federation of Accountants
- Japanese Institute of Certified Public Accountants (JICPA)
- Regnskap Norge/Accounting Norway
Read the full call to action.
About the Association of International Certified Professional Accountants
The Association of International Certified Professional Accountants (the Association) is the most influential body of professional accountants, combining the strengths of the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA) to power opportunity, trust and prosperity for people, businesses and economies worldwide. It represents 657,000 members and students across 179 countries and territories in public and management accounting and advocates for the public interest and business sustainability on current and emerging issues. With broad reach, rigour and resources, the Association advances the reputation, employability and quality of CPAs, CGMAs and accounting and finance professionals globally.
About the Chartered Institute of Management Accountants
The Chartered Institute of Management Accountants (CIMA), founded in 1919, is the world's leading and largest professional body of management accountants. As part of The Association of International Certified Professional Accountants (the Association) its members and students operate in 179 countries, working at the heart of business. In Africa, we are represented in South Africa, Ghana, Botswana, Zambia, Nigeria, Kenya, Rwanda and Mauritius.
CIMA members and students work in industry, commerce, the public sector and not-for-profit organisations. CIMA works closely with employers and sponsors leading-edge research, constantly updating its qualification, professional experience requirements and continuing professional development to ensure it remains the employers' choice when recruiting financially-trained business leaders.
