ACCA has released “clear and practical” guides to natural capital management, which focuses on the “4Rs – restore, reduce, remove and reimagine success”.
The accountant’s role in managing natural capital is explained by ACCA in a new video and accompanying guides for business leaders, performance managers, corporate reporters and auditors and assurers.
The latest guide advises that accountants should “begin the journey to understanding their natural capital risks and opportunities by connecting their organisation’s value chain to its areas of natural capital dependency and impact”.
A strong sustainability governance framework should also be put in place, according to the body, which also notes that this should integrate with an organisation’s strategy, risk management, systems and staff development.
Sharon Machado, portfolio head of business reporting and author of the guides, said: “For many professional accountants, formulating and executing natural capital strategies is likely to be a new experience, and a journey, that involves several key steps.
“So this series helps professional accountants to change business for the benefit of the planet, by providing simple and practical explanations about the process. It includes case studies, alongside links to other helpful external resources from organisations such the Capitals Coalition and the Convention on Biological Diversity.”
She added: “Professional accountants and leaders have direct responsibility for an organisation’s long-term financial well-being, through sustainable value creation. To do this they must assess and drive the strategic decision-making, finance, risk management and control, together with leading performance reporting.
“For many organisations, natural capital is a material factor underpinning the organisation’s resilience – therefore financial well-being will be inextricably linked to good natural capital management.”