Learn about 8 steps any company can follow to enhance investor-grade GHG reporting from Kevin Dancey, IFAC CEO, and María Mendiluce, We Mean Business Coalition CEO, in the Harvard Business Review.
Mandatory greenhouse gas (GHG) emission disclosures are on the way in various jurisdictions, and fortunately, meeting the evolving GHG reporting standards may not be as expensive or difficult as some companies fear. When it comes to GHG emissions accounting especially, sustainability reporting can function as an extension of existing financial reporting, and companies of any size can take immediate steps to ensure their data is in order and that they’re reporting robust information when the new standards and rules go into effect.
To explore aligning GHG emissions accounting with financial reporting systems and processes to deliver decision-useful GHG reporting, the International Federation of Accountants (IFAC) and the We Mean Business Coalition (WMBC) present a Climate Week NYC event, Achieving Investor-Grade GHG Reporting: The Role of Accounting and Finance Professionals. The event will be held virtually September 19 at 9:00am ET and feature experts discussing their experiences, challenges, and best practices in collaborating with sustainability professionals and others to improve GHG reporting that satisfies both organizational and investor needs.
The panel discussion will be moderated by Stathis Gould, Director, IFAC and feature:
Eugene Brink, Vice President, Finance Transformation, GE Vernova
Jimmy Greer, ESG Specialist, Datamaran
Mike Harris, ESG Services Leader at PwC Canada; Chair, Sustainability Assurance Committee, Auditing and Assurance Standards Board (AASB)
Jane Thostrup Jagd, Director, Net Zero Finance, We Mean Business Coalition; Former Lead Compliance Officer at Maersk and Ørsted
Elizabeth Seeger, Board Member, International Sustainability Standards Board (ISSB)
“Professional accountants and finance professionals play a crucial role in providing decision-useful and trusted GHG reporting to management and capital markets,” said Kevin Dancey, IFAC CEO. “With an integrated mindset that connects financial and emissions data, accountants advance progress towards our most urgent shared goal: achieving climate commitments.”
Register for the online event September 19 at 9:00am ET.
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.
About WMBC We Mean Business Coalition (WMBC) is a global nonprofit coalition working with the world’s most influential businesses to take action on climate change. Together we catalyze business leadership to drive policy ambition and accelerate the transition to a low-carbon economy. Our mission is to ensure that the world economy is on track to avoid dangerous climate change by 2020 while delivering sustainable growth and prosperity for all.
The role of accounting and finance professionals in GHG reporting will be explored in virtual event
In September 2023, the United Nations will mark the half-way point to the deadline set for achieving the 2030 Agenda and the Sustainable Development Goals. This is an important juncture for global leaders to reflect on the progress we have made, the progress we have not made, and the challenges we face ahead.
Reflecting on the G20’s current theme of One Earth, One Family, One Future, IFAC, acting in its role as the global voice of the accountancy profession, highlights the importance of inclusivity in underpinning sustainable development in its 2023 Call to Action. We must approach sustainability, the public sector, small- and medium-sized entities (SMEs), and education with an inclusive approach to make sure that the opportunities of today and tomorrow are shared, and that economic and social development are truly sustainable.
“We have serious challenges ahead of us. Fortunately, the global accountancy profession is a committed partner, doing our part to drive sustainable development and demonstrating leadership as a truly global and inclusive profession,” said IFAC CEO Kevin Dancey.
IFAC calls on G20 leaders to:
1. Make Sustainability A Reality, Not Just a Goal
Lead on achieving the UN SDGs and provide a foundation for net zero transitions
Support the ISSB's global baseline for sustainability disclosures
Support mandatory assurance of sustainability information pursuant to ISSA 5000
Support the work of the International Public Sector Accounting Standards Board to develop sustainability reporting standards for the public sector
2. Support Public Financial Management and Fight Corruption
Support high-quality public financial management, professionalization in the public sector, and accrual accounting at all levels of government
Continue to prioritize full adoption and implementation of global commitments on the fight against corruption, such as the G20 Anti-Corruption Action Plan
3. Create an Environment for SME Growth and Innovation
Embed the unique needs of SMEs into global policy making
Support access to digital infrastructure and skills for SMEs
Provide a supportive regulatory environment for SMEs
4. No Inclusive Growth without Education
Support equal access to education, including STEM (science, technology, engineering and math) and accounting skills
Support financial literacy globally and locally
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.
Inclusive approach to key global challenges—like sustainability and education—necessary to achieve the UN SDGs
The International Federation of Accountants (IFAC) plays a vital role in driving the development, adoption, and implementation of transparent and high-quality international standards. These standards for audit and assurance, ethics and independence, education, and public sector accounting are used by professional accountants and serve as a fundamental pillar within the global financial architecture.
The World Bank, an institution dedicated to providing financing, policy advice, and technical assistance to governments of developing countries, recently extended significant financial support to expand the accessibility of certain materials (noted below) into Spanish and French. This support broadens the availability of these publications to IFAC’s global audience and their stakeholders, and helps to promote greater economic growth, development, and accountability.
In jurisdictions where English is not an official or business language, one of the primary obstacles to successful adoption and implementation of international standards is the lack of access to translations in local languages. IFAC takes proactive steps to tackle this challenge by collaborating with member organizations in leveraging their technical expertise to provide translation support, as well as engaging with donors to help further facilitate the translation process.
IFAC CEO Kevin Dancey said, “IFAC thanks the World Bank and our member organizations for their generous financial support in expanding the accessibility of multilingual materials. Your invaluable contribution has made a profound impact on our efforts to foster the adoption and implementation of international standards on a global scale. Consequently, this will pave the way for driving progress, bolstering economic stability, and ensuring responsible financial practices worldwide.”
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
The endorsement by International Organization of Securities Commissions (IOSCO) of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions, are most welcome developments in the ever-important sustainability space.
We commend the IFRS Foundation, the International Sustainability Standards Board (ISSB), and IOSCO who are dedicated to maintaining fair, efficient and transparent markets. Promoting consistent and comparable climate-related and other sustainability-related information is an important component of this work.
As sustainability reporting becomes increasingly mandatory in some jurisdictions, the focus must turn quickly to mandatory assurance. Without it, the quality of sustainability reporting will lag financial reporting, and there will continue to be issues with greenwashing, reliability, and credibility. The accountancy profession, underpinned by its Code of Ethics, is particularly well placed to provide assurance services across both sustainability and financial disclosure.
IFAC CEO Kevin Dancey said, "IFAC applauds IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions. These are important and most welcome developments. Now, the focus must turn quickly to sustainability assurance. IFAC remains committed to advancing these important conversations with our many global stakeholders, including with our 180 member organizations that represent millions of professional accountants all around the world."
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
The public sector is the largest sector in the global economy, and with complex finances, competing demands on public resources, and the need for transparency and accountability in the management of public funds, the demand for accounting and finance professionals is high. However, many public sector entities, including at national and local government levels, struggle to find suitable candidates with the right skills to fill these positions.
In collaboration with the South African Institute of Chartered Accountants (SAICA), IFAC has published a case study on SAICA’s activities in the public sector, highlighting how a focus on the public sector supports its mandate to contribute to South Africa’s economic and social advancement. SAICA’s priorities include increasing the professionalisation of the public sector through multiple pathways to attract talent and grow its membership, as well as supporting members through professional development and by advocating on their behalf.
“Professional accountancy organizations (PAOs) have a critical role to play in the public sector,” said Stathis Gould, Director of Member Engagement at IFAC. “PAOs can promote the value of a professional workforce, advocate for accountants, and support members’ professional development, which will help the public sector do more with less, and ultimately reinforce trust in public services and spending. SAICA is an excellent example to learn from.”
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
IFAC publishes case study on SAICA’s public sector activities
A Case Study on SAICA's Activities in the Public Sector
Given the scale and complexity of public finances, competing demands on public resources, and the need for transparency and accountability for the management of public funds, the demand for finance and accounting professionals is high.
As the global voice of the accountancy profession, the International Federation of Accountants (IFAC) supports corporate reporting that better addresses a company’s ability to create long-term value and is decision useful for investors and other stakeholders. Specific regulatory requirements are necessary to harmonize reporting practice and deliver consistent, comparable, assurable, and decision useful sustainability information.
“We strongly support efforts by the European Commission and ISSB to find areas of interoperability in their standards, starting with climate. However, substantive differences remain, so collaboration must continue. This is crucial for investors and all stakeholders who want interoperable ESRS and ISSB standards and connectivity between sustainability and financial information,” said IFAC CEO Kevin Dancey. “ISSB standards should function as a global baseline for all jurisdictions, including the EU for financial materiality, to adopt or align with. This is also why we need transparency—a navigation tool to help stakeholders know where the areas of alignment exist.”
Implementation by companies and enforcement by regulators of the new standards are essential to ESRS success. IFAC urges additional transitional reliefs to allow companies sufficient time to implement governance, processes, reporting capacity, and internal controls—all essential for high quality disclosure and its assurance.
As assurance brings trust and confidence to corporate reporting, IFAC encourages the European Commission to participate in ongoing stakeholder engagement with the International Auditing and Assurance Standards Board (IAASB) toward the goal of requiring use of the IAASB’s forthcoming new International Standard on Sustainability Assurance (ISSA) 5000 under the Corporate Sustainability Reporting Directive. The International Ethics Standards Board for Accountants’ (IESBA) work on establishing ethics and independence requirements for sustainability assurance practitioners is also vital to producing high-quality, reliable information.
About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
Transparency and interoperability needed to support a global system for reporting and avoid costly regulatory fragmentation, especially regarding matters of materiality
