New report from ACCA, IFAC, and PwC reveals 47% of Asia Pac businesses lack emissions plans despite the climate emergency

New report from ACCA, IFAC, and PwC reveals 47% of Asia Pac businesses lack emissions plans despite the climate emergency

Business

As world leaders convene for COP 28, the Association of Chartered Accountants (ACCA), the International Federation of Accountants (IFAC), and professional services firm PwC have jointly released a groundbreaking report. Titled The Role of the CFO and Finance Function in the Climate Transition: Driving Value and Sustainability, the report draws insights from a comprehensive survey of 1,000 senior finance professionals globally.

Asia Pacific Region Lags Behind in Emissions Planning

The research exposes a concerning trend in the Asia Pacific region, where 47% of respondents are yet to formulate a plan for reducing carbon emissions. More alarming is the fact that 69% of these respondents express no intention of developing such a plan. Globally, 46% lack emissions plans and 70% have no intention of creating one, echoing regional trends.

Catalysts for Accelerated Progress

The report emphasizes the pivotal role CFOs and finance teams can play in accelerating emissions reduction planning. Although CFOs may not always be the primary drivers of the sustainability agenda, they can embed climate transition priorities into business planning and resource allocation. This involvement enables high-quality sustainability reporting both internally and externally.

Skills Development for Enhanced Climate Contribution

The research advocates for finance teams to cultivate the necessary skills and expertise to increase their contributions to climate transition. CFOs navigate dual focus: tackle short-term priorities and upskill teams for long-term net-zero initiatives.

Helen Brand’s Call to Action

ACCA’s CEO, Helen Brand, urges accountancy and finance professionals to lead in achieving organizations’ net-zero ambitions. She emphasizes the role of professionals in supporting a fair and inclusive transition to a low-carbon economy. COP 28 report urges global accountants to actively reduce carbon emissions and support broader climate transition.

Finance Professionals Vital in Climate Change

IFAC President Asmaa Resmouki underscores the essential role of accounting and finance professionals in combatting climate change. Referencing prior research, IFAC President Resmouki emphasizes the need for companies to enhance the decision-usefulness of their transition plans and improve communication with stakeholders.

PwC’s Perspective on the Critical Gap

David Russell, PwC Finance Leader, underscores report finding: businesses lack clear roadmap for meeting emissions targets. He stresses the importance for finance leaders to not only drive sustainability but also build trust in reporting progress. CFOs, according to Russell, can play a pivotal role in integrating environmental considerations into strategy, planning, and reporting, ensuring businesses contribute positively to the climate agenda and adapt in a rapidly changing economic landscape.

Also read this: https://www.skipper.pk/2023/11/25/mobilink-bank-wins-best-bank-for-inclusion-award-at-pba-2023/

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