CSR: Accountants play a vital role in meeting the green finance challenge

Professional accountants’ ability to understand the green finance options needed for the transition to net-zero is key to equipping organisations with this expertise. Having the skills to consider non-financial as well as financial business drivers will also leave the profession well placed to lead in training staff and developing the talent needed for enabling transformation and embedding sustainability.

According to the latest report from ACCA (the Association of Chartered Certified Accountants) and the Institute of Management Accountants (IMA) titled ‘Green Finance Skills: The Guide’, accountants play a vital role in meeting the green finance challenge.

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John Lelliott OBE FCCA, Non-executive Director of the Environment Agency and ACCA Sustainability Global Forum Chair, says, “The accountancy and finance profession’s knowledge and skills in evolving market trends, stakeholder requirements and regulatory changes will be key to transform organisations to operate in a net zero economy.”

The accountancy and finance profession’s knowledge and skills in evolving market trends, stakeholder requirements and regulatory changes will be key to transform organisations to operate in a net zero economy

John Lelliott OBE FCCA, Non-executive Director of the Environment Agency and ACCA Sustainability Global Forum Chair

At a time when access to cheaper capital is more vital than ever to an organisation’s long-term survival, green finance can be a lifeline to businesses. However, the research revealed that businesses are underinformed on climate finance opportunities and climate risk management. 59% of the respondents to the Global Economic Conditions Survey Q2 2022 said they are not considering using green finance products – an opportunity that must be addressed.

With lenders increasingly offering attractive ‘green rates’ to organisations able to meet sustainability requirements, green finance is cheap capital that can keep businesses in business.

In a world where key stakeholders are demanding more from companies and their net zero objectives, green finance is fast becoming the hot topic for the finance profession as it explores financing options

Emmeline Skelton, ACCA Senior Subject Manager – Sustainability

The report author, ACCA Senior Subject Manager – Sustainability, Emmeline Skelton, says, “In a world where key stakeholders are demanding more from companies and their net zero objectives, green finance is fast becoming the hot topic for the finance profession as it explores financing options. The profession needs upskilling, especially in volatile times, where access to capital including green finance is crucial for an organisation’s long-term survival.”

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ESG is the systematic consideration of environmental, social and governance factors alongside financial factors when making decisions about investments, business practices, and commercial relationships. If supported by the right technology, ESG can open new growth opportunities and competitiveness in the Indian market.

According to research from FIS, nearly all financial services companies in India (90%) view ESG as an opportunity to attract increased investment. Decision makers firmly believe (87% of financial services respondents) that ESG can improve their competitiveness in the market. Accordingly, 83% of financial services firms in India are developing new ESG products and services to tap into this growing demand.