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The Chartered Institute of Management Accountants (CIMA) recently commissioned a worldwide survey of 1,100 Chartered Global Management Accountants (CGMAs) and 800 CIMA students, in a bid to understand how engaged management accountants are with sustainability at their workplace.
The study titled "Redressing the balance: How management accountants drive sustainable corporate strategies" found that CGMAs clearly understand the business case for sustainability, with more than two-thirds agreeing that there are significant financial and commercial benefits from integrating environmental and social factors into organisational decisions. The majority (60%) believe that it is their responsibility as management accountants to include relevant environmental and social factors in the information and analysis they give decision makers.
In practice only 45% of CGMAs currently include sustainability issues in their reports to decision makers. Three-quarters of these respondents do so because they believe sustainability impacts on cost, risk and value and, ultimately, on the company's financial performance.
There are distinct differences in the attitudes of management accountants across the globe, with those in Africa and Asia Pacific more likely to understand the business case for sustainability and to take responsibility for analysing environmental and social factors.
The resounding reason for not reporting on sustainability is a lack of corporate mandate, with 60% saying there is a lack of demand from decision makers and a third stating that it is not part of their role or job remit. However, demand from the top looks set to change as more companies recognise the importance of adapting to societal and environmental change. More than two thirds of CGMAs agree that their organisations will expect them to provide increasing amounts of environmental and social data in the next couple of years.
Geetu Ahuja, Head of GCC, CIMA, said:
"Sustainability issues affect all organisations regardless of size, presenting significant new risks as well as potential opportunities. The survey clearly shows that management accountants are poised to help their companies develop more sustainable business practices, but they frequently lack the mandate to do so.
However we are seeing a steady progress made on this front, as a growing number of C-level executives are taking active interest in corporate sustainability and adapting their strategies, business models and practices to respond to social and environmental challenges while creating financial success and value for shareholders."
Four key ways that CGMAs can influence sustainable decisions
- Raise sustainable business as a strategic issue
- Collect, analyse and measure environmental and social data
- Incorporate sustainability information and analysis into decision making processes
- Develop a reporting strategy and approach that integrates sustainability issues
For further information, kindly download report at http://www.cgma.org/Resources/Reports/Pages/redressing-the-balance.aspx
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About CIMA
The Chartered Institute of Management Accountants (CIMA), founded in 1919, is the world's leading and largest professional body of management accountants, with over 227,000 members and students in 179 countries, working at the heart of business. CIMA members and students work in industry, commerce, the public sector and not-for-profit organisations. CIMA works closely with employers and sponsors leading-edge research, constantly updating its qualification, professional experience requirements and continuing professional development to ensure it remains the employers' choice when recruiting financially-trained business leaders.
Professionalism and ethics are at the core of CIMA's activities with every member and student bound by robust standards so that integrity, expertise and vision are brought together.
CIMA has formed a joint venture with the American Institute of CPAs (AICPA) to establish the Chartered Global Management Accountant (CGMA) designation. CGMA is the global quality standard that further elevates the profession of management accounting. The designation recognises the most talented and committed management accountants with the discipline and skill to drive strong business performance.
CIMA is proud to be the first professional accounting body to offer a truly global product in the fast-moving area of Islamic Finance.
For more information about CIMA, please visit www.cimaglobal.com
About Chartered Global Management Accountant (CGMA)
Two of the world's most prestigious accounting bodies, AICPA and CIMA, have formed a joint-venture to establish the Chartered Global Management Accountant (CGMA) designation to elevate the profession of management accounting. The designation recognises the most talented and committed management accountants with the discipline and skill to drive strong business performance.
About American Institute of CPAs (AICPA)
The American Institute of Certified Public Accountants (AICPA) is the world's largest association representing the accounting profession, with more than 394,000 members in 128 countries and a 125-year heritage of serving the public interest. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting.
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© Press Release 2015
