Professional accountants must help drive the migration to sustainable economies and businesses by becoming experts in green finance, according to the latest report from ACCA titled ‘Green Finance Skills: The Guide’. 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.
A recent research by ACCA (the Association of Chartered Certified Accountants) and the Institute of Management Accountants (IMA) revealed that businesses are under informed 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, the report said.
Green finance is an engine of competitive advantage. By embedding sustainability into all activities, organisations will drive value creation.
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.
The research found that organisations worldwide are attaching more importance to environmental factors, with their leaders anticipating significant change in business practices to meet net-zero targets. Understandably they need more support from their finance professionals to increase their access to the green finance products that will underpin the transition to net-zero.
The report author, ACCA senior subject manager, sustainability, Emmeline Skelton, said, “Green finance is part of the fundamental narrative of ACCA’s research programme on net zero transition and the role of the accountancy profession. 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.”
John Lelliott OBE FCCA, non-executive director of the Environment Agency and ACCA Sustainability Global Forum Chair, added, “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.”
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