绿色金融技能提升指南 Green finance skills the guide

GREENFINANCESKILLS:THEGUIDE

AboutACCA

ACCA(theAssociationofCharteredCertifiedAccountants)istheglobal

professionalbodyforprofessionalaccountants.

We’reathrivingglobalcommunityof241,000membersand542,000future

membersbasedin178countriesandregions,whoworkacrossawiderangeof

sectorsandindustries.Weupholdthehighestprofessionalandethicalvalues.

Weoffereveryoneeverywheretheopportunitytoexperiencearewarding

careerinaccountancy,financeandmanagement.Ourqualificationsandlearning

opportunitiesdevelopstrategicbusinessleaders,forward-thinkingprofessionals

withthefinancial,businessanddigitalexpertiseessentialforthecreationof

sustainableorganisationsandflourishingsocieties.

Since1904,beingaforceforpublicgoodhasbeenembeddedin

ourpurpose

.

InDecember2020,wemadecommitmentstothe

UNSustainableDevelopment

Goals

whichwearemeasuringandwillreportoninourannualintegratedreport.

Webelievethataccountancyisacornerstoneprofessionofsocietyandisvitalin

helpingeconomies,organisationsandindividualstogrowandprosper.Itdoes

thisbycreatingrobusttrustedfinancialandbusinessmanagement,combating

corruption,ensuringorganisationsaremanagedethically,drivingsustainability,

andprovidingrewardingcareeropportunities.

Andthroughourcutting-edgeresearch,weleadtheprofessionbyanswering

today’squestionsandpreparingforthefuture.We’reanot-for-profitorganisation.

Findoutmoreat

©2023AssociationofCharteredCertifiedAccountants

March2023

GREENFINANCESKILLS:THEGUIDE

Ifourplanetistoavoidclimatecatastrophe,theworldhastochange.Asaprofessionweneedtobeoneofthegroupsdrivingthatchangebyhelpingorganisationsadapttobuildamoresustainablefuture.Sustainabilityisnotanice-to-haveforenterprisesandbusinesses,itisquitesimplyamust-have.Greenfinancingcansupplyorganisationswiththefundingneededtomakethenet-zerotransition,buttappingthatfinancingrequiresfinanceprofessionalswiththeappropriateskills,expertiseandknow-how.Tohelpfinanceandinvestmentprofessionalsplaythiscriticalrole,ACCAhastakenpracticalstepstoupskillitsmembers.ItslatestinitiativesincludejointlylaunchingaClimateFinancecoursewithCFAInstitute.

ThisreportgivesvoicetotheviewsandperspectivesofmembersandstakeholdersintheACCAcommunitywhohavegiventheirtimetoexploretheirideasingreenfinanceandthenet-zerotransition.Itisaresearchreport,whosefindingsonwhataccountantsaroundtheworldthinkofclimatefinancearefullyoutlinedinAppendixB.

Author

EmmelineSkelton,

HeadofSustainability,ACCA

4

Foreword

JohnLelliottOBEFCCA

Non-executiveDirectoroftheEnvironmentAgencyandACCASustainabilityGlobalForumChair

‘Changeordie’hasaveryliteralapplicationwhenitcomestosustainability.Unlesstheworldaddressestheclimatechangechallengesuccessfully,theremaysimplybenohabitable

worldleft.Amonumentalmigrationtosustainableeconomiesandbusinessesisrequired,andthatissomethingthatweasaprofessionwanttobe–andcanbe–oneofthegroupsdriving.

Theaccountancyandfinanceprofessioncanmakeatellingcontributiontothesustainabilityeffortbybecomingexpertsingreenfinance.It’saperfectmatch–finance,afterall,istheheartofafinanceprofessional’srole.

YetmanyACCAmemberssaytheylackthenecessarytechnicalskillstosteerthe

greenfinancingactivityneededfororganisationstobuildthesustainablefuturethatrepresentsthebestchanceofanyfuture.It’sanobstaclethathastobeovercome,

asACCA’s2021report

ClimateActionandtheAccountancyProfession

highlighted.Tomeetthechallengeproperly,theprofessionneedsupskilling.

Thereisasignificantopportunityheretomakefinanceexpertsintegraltothe

sustainabilitydrive.Asthedemandforsustainableinvestinggrows,finance

professionalsmustbeabletoserviceitbydevelopingadeeperunderstanding

ofhowsustainabilityissuesaffectfinance,theirclientsandtheworldatlarge.

Thisreporthighlightswhy,ingreenfinancing,subjectknowledgeisnotjustpowerbuttheunderpinningofasustainablefutureforbusinessesofeverytype.

5

Contents

1.Thetimetoactisnow10

Executivesummary6

2.Accesstogreenfinance

16

3.Greenfinanceskills

20

4.Sustainablebusinessmodels,valuechainsandsustainableeconomy

26

Conclusion:Keytakeawaysandacalltoaction

29

AppendixA:Glossary

31

AppendixB:GlobalEconomicConditionsSurveyonClimateFinance

34

References

41

GREENFINANCESKILLS:THEGUIDE|EXECUTIVESUMMARY

6

Executivesummary

Sustainabilitycreateslong-termvalue

‘Mayyouliveinexcitingtimes’runstheancientChinesecurse.It’sanaptdescriptionofourvolatileeconomicandpoliticallandscape,whereaccesstocheapercapitalismorevitalthanevertoanorganisation’slong-term

survival.Withlendersincreasinglyofferingattractive

‘greenrates’toorganisationsabletomeetsustainabilityrequirements,greenfinanceisthatcheapcapitalthatcankeepbusinessesinbusiness.Ithelpsthempreparewellinadvancefortheemergingandsystemicrisksbroughtaboutbyclimatechange–afargreaterpotentialdangerthanthemostpowerfulandruthlessofbusinessrivals.

Greenfinanceisanengineofcompetitiveadvantage.

Byembeddingsustainabilityintoallactivities,you

willdrivevaluecreation.‘Simplyput,sustainabilityisabusinessapproachtocreatinglong-termvaluebytakingintoconsiderationhowagivenorganisationoperates

intheecological,socialandeconomicenvironments.

Sustainabilityisbuiltontheassumptionthatdevelopingsuchstrategiesfosterscompanylongevity.Asthe

expectationsoncorporateresponsibilityincrease,andas

transparencybecomesmoreprevalent,companiesare

recognisingtheneedtoactonsustainability.’(InternationalInstituteforManagementDevelopment,May2022).

Keytothisdefinitionisthelong-termnatureof

sustainabilityattheintersectionofsocialequity,economicviabilityandenvironmentalprotection(FigureE1).

FIGUREE1:Thetriplebottomline–sustainability’sthreedomains

equity

Economic

viability

Sustainability

Environmentalprotection

Social

Resources,includingbothhumanandnaturalcapitals,needtobeconsideredinaneconomicallyviable

manner.Butratherthanthetraditionalfocuspurelyontheeconomicelements,professionalaccountantsmustnowconsidertheenvironmentalandsocialelements

too.Theprofessionisentirelyathomediscussing

economicviabilityandbeginningtogetcomfortablewithenvironmentalprotection,butthethirddimension

ofsocialequityisjustascrucial.Thesocialagendaisa

fundamentalpartofthejusttransitionthatisrequiredfororganisationstobesustainable.

ResearchfortheGlobalEconomicConditionsSurvey

(GECS)inQ22022byACCAandIMA(Instituteof

ManagementAccountants)foundthatorganisations

aroundtheworldareattachingmoreimportanceto

environmentalfactors,withtheirleadersanticipating

significantchangeinbusinesspracticestomeetnet-zerotargets.Understandably,theyneedmoresupportfrom

theirfinanceprofessionalstoincreasetheiraccessto–andawarenessandknowledgeof–thegreenfinanceproducts(seeChapter2)thatwillunderpinthetransitiontonet-zero.

Businessestoldourresearcherstheyareunderinformedonclimatefinanceopportunitiesandclimaterisk

management.Lackingtheskillsandexpertiserequired

todevelop,implementandmanageESG(environmental,socialandgovernance)strategiesrobustly,manyare

upskillingexistingstafforrecruitingexternallyfromahighlycompetitivemarketwithasmallpoolofexperts.

Ourprofession’sabilitytounderstandthegreenfinanceoptionsneededforthetransitiontonet-zeroiskeyto

equippingorganisationswiththisexpertise.Havingthe

skillstoconsidernon-financialaswellasfinancialbusinessdriverswillalsoleavetheprofessionwellplacedtolead

intrainingstaffanddevelopingthetalentneededforenablingtransformationandembeddingsustainability.

THEPROFESSIONIS

ENTIRELYATHOME

DISCUSSINGECONOMIC

VIABILITYANDBEGINNINGTOGETCOMFORTABLE

WITHENVIRONMENTAL

PROTECTION,BUTTHETHIRDDIMENSIONOFSOCIAL

EQUITYISJUSTASCRUCIAL.

GREENFINANCESKILLS:THEGUIDE|EXECUTIVESUMMARY

7

2.

Developanet-zero strategy

1.

EstablishESGstrategy

Knowledgeplusskills

TheACCAplatformiscrucialinsupportingfinance

professionalsintheirroleofhelpingorganisations

todevelopwell-structuredandderiskedsustainable

developmentinitiativesandportfoliosofgreenerassets.TheupskillingrequirementforaccountingandfinanceprofessionalsiscoveredfullyinChapter3.Inshort,theyneedtobeableto:

.assessbusinesssustainabilityandESGrequirements

.analyseimpacts

.developstrategicactionplans

.considertheevolvingglobalfinancialmarketslandscape

.sourceandmanagegreenfinanceproducts

.understandandrespondtoemergingglobal

sustainabilitydisclosurerequirementssuchasthosefromtheInternationalSustainabilityStandardsBoard(ISSB),theTaskForceonClimate-relatedFinancial

Disclosures(TCFD)andtheTaskforceonNature-relatedFinancialDisclosures(TNFD).

Thesustainabilityjourney

Climatechangeandthejourneytonet-zerowillhaveafinancialimpactonorganisations’position,performanceandfutureoutlook.Thesustainabilityjourney(FigureE2)thatorganisationsneedtoembarkoninvolvesdefiningnet-zerostrategiesandsettingtime-boundtargets

relevanttothevaluechain.

Sustainabilityisdrivenbyfactorsexternaltoorganisationssuchastheincreasinginterestofregulatorsandthe

developmentofreportingstandards(suchasthe

proposedIFRSS1andS2)thatrequiredisclosuresaroundsustainability.Internally,organisationsneedtodefine

howtheirstrategyaddressesthesustainabilityagenda:whatarethegoalsanddesiredoutcomes?

Thisstrategycanbetranslatedintomeasurable

objectivesthatformpartofinternalperformance

managementprocesses.Theseactivitiesmaybenon-financial,butfinanceplaysastrong,ifnotintegral,roleinthem.Astheguardianofreporteddataacrossan

organisation,financeneedstobeinvolvedinthe

end-to-endprocessestocollectandanalysethedata.

Withplanningnowrequiringintegrated,cross-functionalactivityratherthanafinance-onlyfocus,thesiloed

financefunctionisobsolete.

Chapter1ofthisreportexplainshowtoestablishpolicies,procedures,methodsandpracticestocollectESGdata

insightsrelevanttoassessingandreportingonstrategy.Chapter2setsouthowtoenhanceawarenessofgreen

financeproducts.Chapter3coverstakingaleadrole

indrivingthegreenfinanceagendaandthenet-zero

journey.AndChapter4explainshowtodevelopaclimatefinancestrategyandoperatingmodel,andasustainableinvestment/financingapproach.

FIGUREE2:Thesustainabilityjourney

8.

Developa

sustainablefinance

framework

7.9.

Define

transitionfinance

requirements

6.

Adopt

greenfinance

products

4.

Createa

transitionplan

Establish

ESGprotocolsandcontrols

EnableESGdata

management

Settargets

3.

5.

THESUSTAINABILITYJOURNEYTHATORGANISATIONSNEEDTOEMBARKONINVOLVESDEFININGNET-ZERO

STRATEGIESANDSETTINGTIME-BOUNDTARGETSRELEVANTTOTHEVALUECHAIN.

GREENFINANCESKILLS:THEGUIDE|EXECUTIVESUMMARY

8

14%

Greenfinanceandnet-zeroambitions

Theprecisecostsofclimatechangeandthenet-zero

journey–nottomentionhowthosecostswillbeallocatedbetweenandwithincountries–arehighlyuncertain,butitisonlytooclearthatalleconomiesandorganisationswillfeelaheftyimpactoverthecomingdecades.

Whilethevalueandimportanceofnet-zerotargetsarewidelyunderstood,organisationsarestillfirefightingcurrentoperationalchallenges.

AmongourGECSQ22022respondents,25%thinktheywillhavetoextendtheirtimelinetoreachnet-zero,while51%thinkcostinflationwillforcethemtochangetheirstrategyforreachingnet-zero(FigureE3).

Thegreentransitiondemandslong-termfinancing.

Greenbonds,carbonpricingandsustainability-linked

loanswillallplayanimportantroleifwearetoreachnet-zeroby2050.Yet59%oftheGECSrespondentssaidtheyarenotconsideringusinggreenfinanceproducts:thisisanopportunitythatneedstobeaddressed.

FIGUREE3:Haveorganisationalstrategiesforachievingnet-zerogoalschangedinlightofthefollowingevents?

UKRAINIAN

CONFLICT

28%

57%

15%

Source:ACCAandIMAGECS(2023)

COST

INFLATION

51%

35%

YesNoUnsure

ABNORMALLYHIGH

SUMMERTEMPERATURES

19%

65%

16%

GlobalEconomicConditionsSurvey(GECS)

ACCAandIMAregularlyasksmall,medium-sizedandlargebusinessesaroundtheworldtoconsiderthecostsandopportunitiesofthebusinesschangesneededforthemtoplaytheirpartindecarbonisingtheeconomy.InQ22022,asetofgreenfinancequestionswasputtoourGECSparticipants(AppendixB).

Somekeyresultsareshownbelow.

Net-zerotransition

33%saidtheircountry’sheavydependenceonfossilfuelsandtheextractionsectoristheirmostimportantgreen

financeconcern

46%saidenvironmentalopportunitieswerethemost

importantconsiderationsfortheirregion(egcarbon

emissionsreduction,circulareconomyinnovation,energyandwaterefficiency,sustainablematerials)

41%saidasignificantchangeinbusinesspracticesisneededacrosstheirorganisationorregiontoachievenet-zero

38%sawthenet-zerotransitionasanopportunitytocreatetangiblesocialimpacts(eggreenjobscreation,trainingand

skillsdevelopment,employeeretention,productqualityimprovement,enhancedcustomerengagement,

andmeaningfuldiversity,equalityandinclusion).

Net-zerotimeline

25%ofrespondentsexpecttohavetoextendtheir

timelineforreachingnet-zero

51%saidcostinflationwillmeantheywillnowneed

tochangetheirstrategiesforreachingnet-zero.

Accesstogreenfinance

63%havestartedtheirgreenfinancejourney

(22%arelikelytousegreenfinance,withafurther

41%potentiallyusinggreenfinance)

33%saidalackofinfrastructure,technologyand

skillsisthemostimportantconcernaboutgreen

financetoaddress.

GREENFINANCESKILLS:THEGUIDE|EXECUTIVESUMMARY

9

CALLTOACTION:Howprofessionalaccountantscandriveorganisationstonet-zero

1.Helpdefinetheorganisation’snet-zerostrategiesandtargets.

2.DevelopESGstrategiesandsustainablebusinessmodelsbuiltongreenfinancingandinvestment.

3.Helptoidentifyandadviseonthecosts,benefits,challengesandopportunitiesofyourorganisation’s

net-zerotransition.

4.EnhanceyourunderstandingofgreenfinanceproductsandhowtheycanbeusedfortangibleESGandeconomicimpacts.

5.SetpoliciesandproceduresforenhancedESGdatainsightsandsustainabilityaccounting/disclosures.

GREENFINANCEISAN

ENGINEOFCOMPETITIVE

ADVANTAGE.BYEMBEDDING

SUSTAINABILITYINTOALL

ACTIVITIES,YOUWILL

DRIVEVALUECREATION.

GREENFINANCESKILLS:THEGUIDE|1.THETIMETOACTISNOW

10

1.Thetimetoactisnow

Financingclimateadaptationandthetransitiontonet-zero

Drought,famine,speciesdie-off,andariseinsealevels

thatshrinksproductivelandanddenselypopulatedareas.It’sascience-groundedvisionofanapocalypticfuturethatmanyofusarelikelytolivetoexperienceunlesstheworldcancheckglobalwarmingtonomorethan1.5Cofpre-

industriallevels(Figures1.1and1.2)andreachnet-zeroby2050.TheIntergovernmentalPanelonClimateChange’s

SpecialReportonGlobalWarmingof1.5C(2018)madetheseriousnessofthesituationclear,andundertheParisAgreement,countrieshavelegallyboundthemselves

toreducethegreenhousegas(GHG)emissionsthataredrivingglobalwarming.

Greenfinanceisapotentialsuper-weaponinthebattle

fornet-zero–whentheadditionofgreenhousegasestotheatmosphereisbalancedbytheirremoval.Itwillenablecarbon-intensiveindustriesandcompaniestoreduce

theiremissionsandmeetnet-zerotargets,andfitswithin

thepowerfulfinancialreportingframeworkofagreed

standards,third-partyauditingandregulator-policed

compliance.Financiers,investorsandpolicymakerswillplayakeyroleinscalingupclimatetransitionfinancetounderpinamassshiftbyorganisationstosustainableactivities,greenerassetsandeconomies.

Long-termscience-basedtargetsdevelopedbythe

ScienceBasedTargetinitiative(SBTi)indicatethatmost

companieswillneedtoreducetheirgreenhousegas

emissionsby90–95%toachievenet-zeronolaterthan

2050(2040forthepowersector).SBTI’sNet-ZeroStandardprovidescorporateswithguidanceforslashingtheir

emissionsoverthenextfiveto10years.

Achievingnet-zeroemissionswillrequire:

.significantGHGreductionsinlinewithscience-baseddecarbonisationtrajectories

.permanentremovalofresidualGHGemissionsthatitisunfeasibletoreduceoravoid.

FIGURE1.1:Globalaveragesurfacetemperatureshavebeenrisingstronglysincethe1970s

Source:USNationalOceanicandAtmosphericAdministration(2022)

GREENFINANCESKILLS:THEGUIDE|1.THETIMETOACTISNOW

11

5%

46%47%

38%38%

1%

FIGURE1.2:Long-termtrendofanthropogenicCO2emissionssources

Source:IPCCSixthAssessmentReport(2022a)

Whilethecomplexnatureofclimatechangemakes

exactoutcomes,timehorizonsandfuturepathways

uncertain,thereisahighdegreeofcertaintythatphysicalandtransitionriskswillmaterialise.AccordingtoanIPCC2022report:

.betweenaround3.3and3.6billionpeopleliveinareashighlyvulnerabletoclimatechange,withunsustainableuseofnaturalresources,inequityandmarginalisation

.globally,lessthan15%ofland,21%offreshwaterand8%oftheoceanareprotectedareas,leavingahighproportionofspeciesvulnerabletoclimatechange

.theincreasedfrequency,severityanddurationof

extremeeventswillplacemanyterrestrial,freshwater,coastalandmarineecosystemsathighorveryhighriskofbiodiversityloss.

Opportunitiesinthegreeneconomy

MarkCarney,theUNspecialenvoyonclimateactionandfinance,explainsthenet-zerotransitionas‘thegreatestcommercialopportunityofourage’,onethatwillusherinnewglobalindustriesandsupplychains.

It’sanopportunitythatoverhalftherespondentstoourGECSQ22022researchfailedtorecognise:

54%DIDNOTIDENTIFYANYOPPORTUNITIES

INENVIRONMENTAL

ACTION,AND62%SAWNOPOTENTIALSOCIAL

BENEFITSFORTHEIRREGION.

FIGURE1.3:Whichofthefollowingopportunitieswouldbeimportantforyourglobalregion?

50%

40%

30%

20%

10%

0%

Environmental

Social

Noneoftheabove

/notapplicable

GovernanceEconomicOther

Source:ACCAandIMAGECS(2023)

GREENFINANCESKILLS:THEGUIDE|1.THETIMETOACTISNOW

12

Informationasset

Digitalisedcustomers

Supplychains

Talent

Greenjobsandgenderinequality

Notonlyarewomenmorevulnerablethanmentoclimatechange,butthemuchvauntedgreenjobs

economy–theInternationalLabourOrganizationreckonson24millionnewrolesgloballyby2030–islikely

topassthemby.

Sectorssuchasagriculturethataredisproportionately

Ensuringwomenarenotleftbehindinthetransitiontonet-zeroispartofthesocialequitydomainin

sustainability’striplebottomline(FigureE1).

Governmentsandbusinessesneedtoworktogetherto:

.embedagenderperspectiveinclimateinvestments

–globalinvestmentineffortstoachievenet-zero

shouldtotalUS$100–150trillionby2050(BCG2021)

.ensureequityingreeneconomyjobs–byincreasingthenumberofwomeneducatedandtrainedin

science,technology,engineeringandmathematics(STEM)subjectsandsustainability-relatedfields,andbyincreasingfemalerepresentationinindustriesthatrequirereskillingforthegreentransition.

affectedbyextremeweatherconditionshaveworkforces

mainlycomposedofwomen.AccordingtoUnitedNations

agencies,80%ofpeopledisplacedbyclimatechange

arewomen(UNEnvironment2022),andwomenare14

timesmorelikelythanmentodieduringenvironmental

disasters(UNWomen2018).

Meanwhile,thesectorsthatwillbenefitmostfrom

thetransitiontonet-zeroareutilities,construction

andmanufacturing–whichhaveoverwhelminglymale

workforces.Ifcurrenttrendsinareassuchaseducation

andemploymentcontinue,theclimatemitigationand

adaptationstrategiesdesignedtodaycouldsetgender

equitybackby15to20years,accordingtoa2021

BostonConsultingGroup(BCG)analysis.

Organisationaltransformation

EscalatingESGchallengesarenowuppermostin

themindsofinvestorsandmanyotherstakeholders,presentingorganisationswithabroadersustainabilitychallenge.Asgovernmentsrecognisetheneedto

addresstheclimateemergency,soorganisationsmust

respondwiththeirownplanstoaddresscarbonneutrality,net-zeroorsimilardefinedtargets.Figure1.4illustrates

thefactorswithwhichbusinessmustnowcontend.

Forthefinanceteam,thechangesandchallengesare

reflectedingreaterstressbeinglaidoninsightand

forward-lookingconsiderationsratherthanonjust

reportingpastevents.Changeisneedediffinance

professionalsaretoremainrelevanttotheirstakeholders.

ACCAandIMAmembersrecognisethis:81%of

respondentstoGECSin2022thinkorganisationsandregionswillneedtochangetheirbusinesspracticestomeetthenet-zerotarget(Figure1.5).

Forfinancetoplayaneffectiveroleinorganisations’

greentransition,itmustfirsthaveclarityaboutitsown

purpose.Valueisthemeasurementofanorganisation’spurpose:itrepresentsboththefinancialreturnacrossthesustainabilityagendaanditscontributiontosociety.

Onlyoncethisisestablishedcanfinancedeliverthe

organisationaltransformationitsstakeholdersdemand.Transformationitselfisamovefroman‘as-is’toa‘to-be’statethathasmanydimensionsacrossorganisations.

SeeACCA’s2021reportTransformationaljourneys:financeandtheagileorganisationforfurtherdetails.

CHANGEISNEEDEDIF

FINANCEPROFESSIONALSARETOREMAINRELEVANTTOTHEIRSTAKEHOLDERS.

FIGURE1.4:Factorscontributingtoorarisingfromcontinuousbusinesschange

Climateandsustainability

Continuoustransformation

GREENFINANCESKILLS:THEGUIDE|1.THETIMETOACTISNOW

13

41%

40%11%5%3% 42%11.5%7%3.5% 50%9.5%6%3%

43.5%14.5%4%1%

36%

31.5%

37%

29%

54%

5%

39%

55.5%

6%

29%

47%6%18%

FIGURE1.5:Howmuchdoyouthinkyourorganisation/regionwillhavetochangeitsbusinesspracticesinordertomeetthenet-zerotarget?

TOTAL

NorthAmerica

MiddleEast

AsiaPacific

Central&EasternEurope

SouthAsia

WesternEurope

Africa

Caribbean

SignificantchangeSlightchangeNochangeatallDon’tknowNotapplicable

14%

57%

24%

17%

43%

8.5%

9.5%

29.5%5%4%

0%20%40%60%80%100%

Source:ACCAandIMAGECS(2023)

FIGURE1.6:CreatinganESGframework

Develop

•Createatransitionplan–egifclimateisamaterialrisk,setanet-zerotargetandatransitionplan

•DevelopanESG

frameworkwithtargetsandmetrics

•Createanorganisationalplantodrivethisagenda,includinganassessmentofthedatarequirement.

Deine

•Understandsustainabilityinthecontextofcreatinglong-termvalueforthe

organisation

•Validatewithstakeholders

•PrioritiseESGsthathaveamaterialimpacton

theorganisation.

Communicate

•CommunicateESG

performancetointernalandexternalstakeholders

•MakeESG-related

disclosurestofulfill

regulatoryrequirements

•Communicateprogressagainsttransitionplan.

ESGframework

Buildinglong-termvaluethroughsustainabilityisa

no-brainer.ThefirststepfororganisationsinthisprocessistodevelopaframeworkforincorporatingESGfactorsintotheiroperations(Figure1.6).

ACCA’s2022reportPlanningandperformance

managementparadigmshowsthatsustainabilityand

non-financialdisclosuresmustbeembeddedinthe

planningandperformanceprocesses.Itaddresseshowbusinesspartneringskills,supportedbyrobustdataandefficienttechnology,canenablefinanceteamstotakeamoreholisticapproachtocross-organisationplanning.

ESGinvesting

ESGinvestingisahighlyeffectivetoolforaddressingclimatechangebecauseitallowscompaniestoreducethecostofcapitalandtoattractinvestors.

Organisationsneedaccountancyandfinance

professionalswhocangiveinvestorsESGclaritybydevelopingandbuildingaframeworkforESGbondissuances,andcanguidethebusinessinaccessingfundsforgreentransitioning.

GREENFINANCESKILLS:THEGUIDE|1.THETIMETOACTISNOW

14

.providebusinessstrategicandfinancialinvestmentdecisionsbasedonin-depthanalysis,tocreateaportfolioofgreenerassets

.identifyESGrisksandopportunities,andtheasso