Businesses and other organisations need to improve reporting of the interconnections between their business activities with sustainability if they are to survive and thrive in the future, says new research from ACCA
All professionals, and especially accountants, need to gather and use insights to better understand the relationship between sustainability-related matters and business activities if businesses are to survive, according to Making information connections for sustainable value creation, the latest release in ACCA’s sustainability reporting research series.
Those that fail to do so are at risk of not being alert to challenges impacting their resilience and future survival, and could also miss good opportunities, says ACCA.
Unfortunately, connectivity for sustainability-related matters is not common practice among organisations in their corporate reporting activities, including the publication of annual reports. Frequently the connections are not communicated – risking poor quality decision-making by all stakeholders. A survey of over 1,000 finance professionals from around the world (see notes to editors) revealed that only half (49%) of their organisations explain how sustainability is reflected in their operations and only 38% explain how they manage sustainability risks.
ACCA is recommending corporate disclosures build on the rules already laid down by the International Sustainability Standards Board (ISSB). This research has identified an opportunity for sustainable value creation by expanding the ISSB definition of connectivity and connected information in order to provide better information that will create more resilient business models.
Report author Sharon Machado, head of sustainable business at ACCA said: 'Successful organisations have always worked to make connections but if we're to make the progress on sustainability that the world needs then we're calling on businesses to supercharge those connections. Currently there is a real risk that progress will not be swift enough. Professional accountants are uniquely placed to connect sustainability-related information to financial information.'
The ISSB and some of ACCA’s network of business experts shared their valuable insights to help connect information for quality decision-making and sustainable value creation. Many of their recommendations call for professionals to leverage core ‘business as usual’ activities – but incorporate sustainability-related insights central to the organisation’s survival.
The research launches in the same month that ACCA was recognised with a special nomination in the international category of the UN Trade and Development (UNCTAD) International Standards of Accounting and Reporting (ISAR) Honours 2024. The award recognised ACCA’s 360-degree approach to building capacity for sustainable business through high quality, connected sustainability and financial information.
ACCA has shared the research and guidance it has produced on a range of sustainability issues at the COP29 climate summit in Azerbaijan.
The research includes real-life examples and suggested activities to help professional accountant to be the connectors that organisations need to create sustainable value. Read the research at the ACCA website.
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About ACCA
We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries.
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies.
Guided by our purpose and values, our ambition is to lead the accountancy profession for a changed world. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all.
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