Sustainability accounting links sustainability initiatives to company strategy. The evaluation of risks and opportunities, providing measurement and accounting and performance management skills are all part of sustainability accounting. Sustainability should be embedded into the day-to-day operations of an organization.
Investors, customers and key stakeholders continue to seek reliable and transparent information on a variety of environmental, social and governance (ESG) metrics. The accounting profession has a key role to play. Accountants within organizations play an important role in integrating critical business information; implementing and maintaining relevant processes and controls; making and enabling business decisions; and reporting to stakeholders in a holistic, integrated way. Public accountants play a critical role in providing assurance and advisory services to organizations to enhance confidence in the reported information. As influential members of almost every business, government and non-governmental organization, professional accountants are uniquely positioned to make a difference.
Continue reading "Are you ready for these ESG trends?" »
At the beginning of 2020, before the COVID-19 public health crisis severely impacted communities across the globe, the World Economic Forum sounded the alarm about climate risk in its 2020 Global Risks Report. For the first time, the top five long-term risks were all environmental: extreme weather, climate action failure, natural disaster, biodiversity loss and human-made natural disasters. Considering that in 2019 weather disasters cost an estimated U.S.$232 billion worldwide, it’s not surprising that the environment took center stage in their risk assessment. This year, risk has become reality for many. Even as people and economies across the globe struggle with the challenges of the pandemic, we are witnessing the dire consequences of environmental events as fires and floods threaten the economic recovery of impacted communities.
Continue reading "Climate risk and business resilience: How the profession can help" »
Many factors have contributed to vast changes in the corporate reporting landscape in recent years. These include accounting standards changes such as revenue recognition, leases, and credit losses. However, it’s widely recognized that financial statements and financial information alone may not tell the whole story when evaluating businesses. What do these changes mean and how can CPAs take a leadership role?
Surveying the landscape
Continue reading "New business challenges call for CPAs to take on new roles" »
Do you use plastic wrap to keep leftovers fresh? When you spill coffee on the floor, are paper towels your go-to clean up tool?
If you’re like me, you haven’t spent much time thinking about how disposable household products are adding to an Earth-health crisis.
Americans produce an unsightly amount of trash each year — enough to reach to the moon and back 26 times. The worst part may be that more than 75 percent of this waste is recyclable, and 25.1 million tons of our trash is compostable food waste.
I’m guilty of adding to the problem. I used to throw out old food, plastic bags and shampoo bottles with reckless abandon. This not only caused injury to the environment but put a strain on my household’s budget.
Continue reading "How small eco-friendly changes can mean big money in your home" »
As a CPA, you build strong relationships with your small business clients, so you’re not surprised when one of your clients, who is running a startup, asks for a meeting to talk about her goals for the coming year and beyond. She is looking to enable growth by attracting new investors, to continue recruiting quality talent and to differentiate the company in the marketplace by giving it a competitive edge going forward. You want to help, but where do you start?
Rethinking the business
While such goals can sometimes seem daunting, you know that there are simple steps she can take to improve her chances of achieving all three: Make changes that ensure her company is operating in a sustainable manner. There are some direct results of embracing greater sustainability. These include fostering innovation, driving financial performance and improving risk management, according to a Harvard Business Review article. Other benefits include improved brand image, greater appeal to employees and investors and increased ability to comply with regulations.
Continue reading "Think sustainability’s unsustainable? Think again. " »