ACCA spotlight UK Chief

A brighter future for accountants

Claire Bennison (pictured), head of ACCA UK, looks back at COP26 and what this means for the accountancy profession

Irecently had the pleasure to speak at the PQ and London South Bank University (LSBU) event Tomorrow’s World – a brighter future for accountants? (see https:// tinyurl.com/4bckrv9n).

This event’s title was timely and very relevant as it came within two weeks of COP26 closing, when many of us were wondering what the future holds.

But as I said in my opening remarks, there was one change I’d have liked to have made to that title – and that was removing the question mark.

That’s because in ACCA’s view, an exciting era is dawning for the accountancy profession. Now is the time for accountants to take on new roles, with new responsibilities which sees them acting as strategic leaders, entrepreneurs and visionaries in a world that is changing rapidly.

The pace of change is daunting, and certainly the lessons we took from the COP26 conference in Glasgow were sobering.

We heard almost unanimous agreement among delegates and from decision-makers beyond the venue that urgent action is essential to turn down the thermostat on our over-heating planet.

Yet there was much less unity among Governments on what any immediate action should include. While the closing statement recognised the importance of the Glasgow Climate Pact, the official messaging was that keeping the 1.5 degree target alive was a “fragile win”.

But there were reasons for optimism coming out of COP26, and that matters a great deal for PQ readers – students, members, lecturers – because of the critical role that presents itself to finance professionals at this crucial moment in history.

There was one particularly remarkable day of debate at COP26 that was dubbed Finance Wednesday where the announcements amounted to something of a manifesto for a new way of doing business which places purpose and the planet before profit.

A significant announcement came from Mark Carney, co-chair of the Glasgow Financial Alliance for Net Zero (Gfanz) – a global group of 160-plus financial institutions that have made their own net-zero commitments and aim to unlock the trillions needed to achieve a resilient, zero-emissions future.

In their press release, they stated that all Gfanz member alliances must use science-based guidelines to reach net-zero emissions, cover all emission scopes, include 2030 interim target setting, and commit to transparent reporting and accounting aligned to the UN Race to Zero criteria.

Carney warned that “companies that have plans in place to reduce the emissions, will find the capital, those who don’t won’t”. Carney also talked about the importance of more accurate, responsive, and planet-aware corporate reporting, adding: “We will have the feedback about who is doing well, who needs to do better, and also in terms of policy, what’s there and what’s not.”

Soon after the Gfanz announcement we heard from the IFRS Foundation Trustee Chair Erkki Liikanen about the creation of the International Sustainability Standards Board (ISSB).

This development offers a unique opportunity to help shape global reporting standards for the benefit of investors, economies and the public good, and it will play a vital role in tackling the global environmental and social challenges ahead.

ACCA ensured that small business had a voice at COP26 too, as we launched a report with Sage and the International Chambers of Commerce called ‘Think Small First’. Here, we recognised that millions of small businesses want to play their part in the battle against climate change, but the current carbon reporting regime makes it too difficult. They don’t have dedicated sustainability officers, or teams of specialists to help with regulations. That’s why accountants need to continue to support small businesses, and why there’s a real value and opportunity for members working as small business accountants.

With a bright future ahead comes many challenges, especially as accountants will play such a key role as the champions of a new way of doing business that takes into account the health of the planet as well as the balance sheet.

So as a profession we all need to support ourselves to be ready to take up these challenges, to ensure we possess the skills that will ensure we’re involved in the change that needs to happen. We know from our research Climate action and the accountancy profession: building a sustainable future that many in the profession see this important – 75% told us it’s important that finance teams are involved in supporting their organisations to tackle climate change.

I’ll end this article in the same way I ended my speech at the excellent and engaging PQ LSBU event – to assert that the future is bright for accountants, without question. • Claire Bennison, head of ACCA UK

Check out the PQ magzine/LSBU conference ‘Tomorrow’s world – a brighter future for accountants?’ at https://tinyurl. com/4bckrv9n