The Association of Chartered Certified Accountants (ACCA) has published guidance on how finance professionals can report sustainability-related opportunities while managing concerns around commercial sensitivities and stakeholder expectations.
It sets out eight measures to help finance professionals manage these challenges:
- Connect sustainability drivers and financial outcomes with long-term value creation and resilience
- Clearly communicate to stakeholders how value creation will evolve over time
- Ensure processes are in place to identify short, medium and long- term opportunities
- Be transparent about managing trade-offs and information gaps within reporting, be aware of possible ethical dilemmas, and build in verification and independent assurance
- Use technology to manage and facilitate access to decision-useful data
- Upskill and build capacity, equip boards and senior management with skills for strategy and oversight
- Engage in peer-to-peer collaboration and discussions within and across functions and sectors
- Understand that consumer awareness, regulatory preparedness, economic pressures and business models can vary across geographies
Hsiao Mei Chow, head of corporate reporting insights at ACCA, stated: "Business leaders, professional accountants and organisations must carefully tailor the timing of opportunity communication to their respective unique circumstances - and curate decision-useful information that safequards stakeholders’ trust while protecting competitive advantage."