GUEST COLUMN


ACCOUNTING FOR A BETTER WORLD


Everyone has a role to play in changing business for the better, says Stephen Shields, director, partnerships and recognition, at the Association of Chartered Certified Accountants (ACCA)


We can all make a difference to the world in our own lives, and our communities and organisations. What that change looks like, what it amounts to, will differ for everyone, because individuals and businesses are all different. For us at ACCA, the way we seek


change is summarised in an initiative that we call Accounting for a Better World – which helps us tell a powerful story of how the accountancy profession benefits societies and economies, and how it responds to the many challenges facing the world today. This important initiative says so much


about how our members play their part in building a better, more sustainable planet for all.


Perfect storm In an age of upheaval, it’s more important that professionals – such as ACCA members and readers of this journal – position themselves at the heart of issues such as sustainability, inclusion, ethics, and the increasing desire of individuals and societies around the world to change life for the better in the face of the Covid-19 pandemic, climate change, supply chain issues, uncertainty, and conflict. Our agenda for action sets out


seven priorities: • Advancing standards and regulations • Building resilient economies • Developing the talent of tomorrow • Driving sustainable business • Strengthening ethics and trust • Supporting entrepreneurial growth • Transforming the public sector


CISI.ORG/REVIEW


A perfect storm of challenges has sent the issue of sustainable business in particular rocketing up the corporate agenda, and it’s the biggest source of both risk and opportunity for all of us.


Grain of society The drive for sustainability means that investors increasingly look at activities which bring dividends greater than a financial return when they are considering how to use capital. More and more, investors seek a commitment to sustainability, placing a premium on long-term stability rather than the instant gratification of a quick dollar. And, of course, there are increasing risks for investors who don’t take this wider view. This is good news for professional


middle of the century and beyond must adopt a new way of keeping score – a new way of measuring value that goes beyond the numbers in the profit and loss columns. It’s the only way they can limit the risk that they will be abandoned and left for dead by investors, consumers, and potential employees. This marks a sea change in the


We measure success across years and decades rather than just financial quarters


way business is carried out, and this is the way the grain of society runs now. That much became clear at the COP26 (Conference of the Parties) summit in Glasgow in 2021, when a day of debate was devoted to the urgent necessity for businesses to realise that


accountants, because we measure success across years and decades rather than just financial quarters, and are increasingly doing so against a whole set of indices – including social value, public wellbeing, and protecting the environment – looking at how all of these things impact the finances and risks of an organisation. Just a few years ago, the idea of


business placing the public good and impact on society at the top of its agenda would have been unthinkable. Economic orthodoxy was about maximising profit and the dash for growth. No longer. Any business with ambitions to survive through to the


big investors will only commit capital if they are confident their return will be sustainable, long-term, and will minimise the risk of climate change, public antipathy, and damage to society.


Expensive mistake No less a figure than Mark Carney, UN Special Envoy for Climate Action and Finance and ex-Bank of England governor, laid it on the line for businesses that relegate the risk of climate change in particular, saying, “Companies that have plans in place to reduce the emissions will find the capital – those who don’t won’t.” In these days of doubt, we all need to


play our part in accounting for a better world. It’s an expensive mistake if we don’t, in more ways than one.


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