Accountants must take ownership of corporate climate change

08 December 2009

Accountants must take ownership of corporate climate change initiatives
Accountants around the world must start taking ownership of their organisations’ climate change initiatives as they may ultimately be held accountable for the relevant targets. A report launched by CIMA (Chartered Institute of Management Accountants) today warns that without the full commitment of finance professionals to adapt to and mitigate climate change through clear and achievable goals, organisations risk running up higher costs and damaging their competitive edge. See the report, ‘Accounting for Climate Change’.

With the Copenhagen Conference, COP15, this week, there is a need for businesses to get prepared for a universal set of climate regulations. CIMA’s report outlines how accountants are critical to ensuring climate change strategy is properly embedded within mainstream business life. This may seem self-evident, but recent CIMA research shows that over half of the 900 international accountants and Corporate Social Responsibility (CSR) professionals surveyed say that their organisations do not see climate change as a strategic priority – with one in five saying that climate change is not on their organisation’s agenda at all.

CIMA’s report draws on a series of case studies and shows how, when finance departments are engaged with CSR experts within organisations, it is possible to embed good practice and to actually make significant cost savings from sustainability initiatives. One of the keys to achieving progress comes from finance and CSR departments working more effectively together. This was something CIMA observed in a number of companies that have adopted strong business partnering principles within their finance team and wider organisation.

Charles Tilley, chief executive at CIMA, says:
'CIMA believes that a clear set of targets needs to be reached at this month’s Copenhagen Conference and that organisations around the world must ensure their finance professionals are at the heart of climate change initiatives if they are to be successful. Whatever the result of the deliberations in Denmark, a clear set of internationally agreed climate change targets is a realistic prospect. Finance departments must start planning for such an eventuality now.'

Alongside launching ‘Accounting for Climate Change’ today, CIMA has joined forces with the Copenhagen Communique to issue a statement alongside hundreds of other organisations around the world calling for a credible deal to be reached at the Copenhagen Conference this month.

The Institute has further signed a letter by Accounting for Sustainability, a Prince of Wales initiative, calling for a single set of universally accepted standards for measuring, reporting on and monitoring greenhouse gases around the world.
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