ICAS convenes experts to tackle climate crisis

The Institute of Chartered Accountants of Scotland (ICAS) has revealed it held an event in Edinburgh that highlighted the value creation that businesses can unlock by prioritising sustainability, with panellists calling for policy certainty from the government to realise this.  

 The ICAS Sustainability Summit, hosted in association with Accounting for Sustainability (A4S), attracted over 100 ICAS members and professionals to inspire collective thinking and action. 

Discussions shed light on the challenges businesses face on their net zero journeys, with industry leaders and sustainability experts sharing insights across two panel sessions.  

 With 75% of UK investors now screening their investments for their sustainability or ESG credentials, Martina Tessari, head of Europe and Global Reporting lead at A4S, stressed that robust sustainability reporting can create value and help inform decision-making.

Meanwhile, director of Strategic Affairs and Capacity Building at the IFRS Foundation, Ravi Abeywardana, added that sustainability reporting is a communication tool that can “unlock a tremendous amount of capital”, as well as mitigate risks.

 Newly-elected ICAS president and group CFO at Vue International, Alison Cornwell CA, explained that getting customers to engage with a business’s green agenda can be used as a “virtue that resonates with customers”, encouraging positive behaviours as well as loyalty. She gave examples, including adding signs in toilets to explain to customers why their hand dryers have cold air instead of warm, providing a 95% saving on energy use.  

 Panellists agreed that economic incentives, and greater policy certainty from the government, are needed to encourage “real behavioural change and realise these opportunities”.

Other takeaways from the event included: 

• The urgency for all business sectors (including SMEs, who produce around 35% of all UK value chain emissions) to start their sustainability reporting journey now, regardless of the complexities of the different standards or imperfect data sources. 
• The vital role that the finance and accounting profession play in getting businesses ready for implementation, yet the need for extensive collaboration to build capacity and capability in this area, with only 9% of CFOs feeling fully equipped to transform their financial decision making to account for sustainability. 
• The essential role of technology in achieving “ESG 2.0”, so that sustainability data is financial-grade, auditable and decision-useful.