Dubai: Research among 117 accountants and finance professionals across the Middle East reveals that just 14% say their organisations have set targets to be net zero compliant by 2050. However, looking ahead, a significant 69% say their organisation will be willing to invest much more than today in addressing climate change over the next three to five years.

These results are included in ACCA’s report Climate action and the accountancy profession: building a sustainable future, published ahead of the COP26 summit which begins on 31 October in Glasgow, Scotland.

The key findings and the opinions from participants from both the public and private sectors, in organisations large and small, reveal the gap between the good intentions of organisations, and the urgent and speedy need for climate action.

Helen Brand OBE, chief executive of ACCA, says: ‘There’s a critical need for leaders, whether in governments, the private or public sectors, to grasp the scale of this challenge and to respond to it. The accountancy profession has a critical role to play in this, both to lead long-term value creation in sustainable economies, and to champion responsible practices for the public good.’

The report highlights that accountancy and finance professionals can bring an integrated approach that places sustainability at the heart of organisational decision making, rather than it being an additional consideration. This approach links strategy and governance to data-driven decision making and rigorous measurement of performance using science-based targets, coherent reporting and trustworthy assurance of information used by stakeholders.

Fazeela Gopalani, head of ACCA Middle East comments: ‘Very few organisations are progressing at the pace and scale needed to counter the devastating and world-altering threats climate change is posing. Organisations must leverage the expertise of accountancy and finance professionals to increase the pace of climate action. This is needed to future proof their organisations and to deliver value while coexisting with natural ecosystems.’

Other findings for the Middle East show that:

  • Only 24% integrate climate key performance indicators (KPIs) into their business strategy and/or risk frameworks.
  • 40% say that climate change considerations play a significant role in financial decision-making in their organisation.
  • 49% say the impact will come through physical effects of climate change such as changing weather patterns, extreme heat or flooding.
  • 52% believe climate change regulation - in the form of climate pricing or new reporting requirements - will impact their organisation over the next five years.
  • 68% say it’s important that their future career involves taking action on climate change.
  • 76% say it’s important that accountancy and finance teams are involved in supporting their organisations to tackle climate change.

Despite the appetite of finance teams to support their organisations, they also feel that there are barriers to be overcome – the most cited one (52%) being an internal organisational perception that climate action was not viewed as the responsibility of the finance team. Lack of commercial incentive around climate action (50%), a lack of support from leadership (39%), poor data to work with (37%), and their own lack of professional skills in the area of expertise (14%) were also seen as barriers.

Fazeela Gopalani concludes: ‘While some of these findings are concerning, there are clear opportunities which our members in the Middle East see ahead. There is a new purpose for organisations, a new way for them to operate, and an opportunity for accountancy and finance professionals to provide leadership. Their ability to drive strategy and decision making by connecting financial and non-financial information into a coherent narrative, ethical lens, and trustworthy assurance of information will play a key role. Our report includes practical tips and guidance on reshaping organisations for a post-fossil fuel economy and the skills and mindset needed for this.’

As part of its commitment to the UN SDGs ACCA aims to become net zero by 2030. It will report on progress in its annual integrated report. As a member of the A4S Accounting Bodies Network (ABN), ACCA has also joined 12 other accountancy bodies to commit to achieve net zero greenhouse gas (GHG) emissions within their own organisations, as well as provide an enabling environment for their membership to do the same.

The report can be downloaded here: https://www.accaglobal.com/gb/en/professional-insights/pro-accountants-the-future/climate-action-accountancy-profession.html

-Ends-

About ACCA:

ACCA (the Association of Chartered Certified Accountants) is the global professional body for professional accountants. We’re a thriving global community of 233,000 members and 536,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.

ACCA offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies. Since 1904, being a force for public good has been embedded in our purpose. In December 2020, they made commitments to the UN Sustainable Development Goals which they are measuring and will report on in our annual integrated report.

ACCA believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities. And through our cutting-edge research, they lead the profession by answering today’s questions and preparing for the future. They are a not-for-profit organisation. Find out more at accaglobal.com

For media requests:
Ramla Shahid
TishTash PR
Email: ramla@tishtash.com 

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.