19% of Singapore Businesses Have No emissions Plan in Place, Says Report

A plan to lower carbon emissions has not yet been developed by 19% of Singaporean respondents, according to the study titled “The role of the CFO and finance function in the climate transition: driving value and sustainability” was released by the Association of Chartered Accountants (ACCA), the International Federation of Accountants (IFAC), and the professional services firm PwC.

This is based on a survey that was conducted among 1,000 senior finance professionals worldwide.

The research revealed that 45% of respondents who do not currently have an emissions plan stated they do not currently intend to develop one, which is alarming. By contrast, 46% of respondents worldwide have not yet created an emissions plan, and 70% of those who have stated they do not currently intend to do so. Response rates are similar across the Asia Pacific region: 47% of participants have not yet created an emissions reduction plan, and 69% of those who have stated they do not currently plan to do so.

This is a significant problem given that successful transition planning to a low carbon business starts with the development of a robust emissions reduction plan.

The report also says that that involving CFOs and finance teams in the emissions reduction planning is likely to accelerate progress. They should embrace this because, although they may not always be the ‘owner’ of the sustainability agenda, CFOs can embed climate transition priorities into business planning and resource allocation, and enable high-quality sustainability reporting internally and externally.

The research recommends that finance teams need to develop the right skills and expertise to continue increasing their contribution to a climate transition. For CFOs, balancing the short-term operational priorities of the finance team whilst simultaneously upskilling and equipping the team to support the wider organisation’s net zero initiatives longer term must now be a critical imperative.

Helen Brand, chief executive of ACCA said: ‘The accountancy and finance profession can enable organisations to achieve their net-zero ambitions in a fair and inclusive way. They can also support the just transition to a low-carbon economy by helping their organisations to seize the associated business benefits. As COP28 begins, this report is a call to action for professional accountants everywhere to play their part in helping their organisations to reduce their carbon emissions and support the climate transition.’

Asmaa Resmouki, president of IFAC, commented: ‘The expertise of accounting and finance professionals in combatting climate change is absolutely essential if we are to make the progress the planet so desperately needs.’

‘This report corroborates IFAC’s prior research into corporate disclosures on emissions targets and transition plans for achieving them. Companies need to improve the decision-usefulness of their transition plans and how they communicate them to stakeholders.’

David Russell, finance transformation leader, PwC, added: ‘This report highlights a critical gap where some businesses lack a clear roadmap to meet their emissions targets and the ability to measure and report progress against their goals. It’s imperative for finance leaders not just to drive the change towards sustainability but also to build trust in the reporting of progress towards sustainability goals. CFOs can play a pivotal role in integrating environmental considerations into strategy, planning and reporting – ensuring that businesses not only contribute positively to the climate agenda but also adapt and thrive in a rapidly changing economic landscape.’

Green Finance Skills

At the recently held COP28, ACCA joined with technical services provider TUV Rheinland to explore how businesses of all sizes can be better supported to adapt, upskill and attract transition finance.

The session, Impact investing with purpose and precision based on sound accounting principles, also highlighted the critical role of accountants in supporting a just transition to a more sustainable world and driving forward equitable sustainability investment. Increasing sustainability and green finance skills across the world are a critical part of this, including for SMEs who are essential to a just transition.

Impact investors seek to generate positive and measurable social and environmental impact, alongside a financial return. Investing in businesses actively wanting to be part of climate-change solutions is essential to a sustainable future.

Helen Brand, Chief Executive, ACCA, who spoke at the event, said: ‘Both businesses and investors will gain from having high quality accounting and management information on climate-related issues. An important part of a just transition to a more sustainable world is ensuring that all businesses – whatever their shape or size – have access to the skills that are needed to enable this. It’s important that we build those skills across the world, and accountants are well-equipped to play a central role in this.’

She added: ‘The further development and adoption of consistent, comparable sustainability reporting standards will also be an important driver of change.’

The session – part of Private finance capacities day at COP28 – focused on the fashion and garment industry, exploring sustainable development funding opportunities, and what investors need and think.

Rakesh Vazirani, Head of Sustainability Services, Business Stream Products, TUV Rheinland, said: ‘Companies, especially SMEs are impatient to be resilient in the face of triple planetary crisis, and intent on avoiding greenwashing risks while on this journey. Harmonized due-diligence and impact measurement approaches that are context-sensitive but grounded in sound accounting practices can be the adrenaline for this decarbonisation-linked transition.’

Both business seeking investment and those with funds will gain from having clear, consistent accounting and management information which identifies, sets out and manages climate-related business risks.

Impact measurement and management (IMM) has become increasingly sophisticated over the last decade, driven by growing interest in impact investing and the need to address more stringent sustainability reporting requirements from regulators.

Saqib Sohail, Responsible Business Projects, Artistic Milliners, said: ‘At Artistic Milliners, green isn’t just a trend, it’s our responsibility. We invest in long term eco-initiatives because the planet can’t wait. We’ve explored various financing options, and co-financing shines brightest. It builds bridges for ambitious decarbonization projects. We have a vision to factor environmental impact into our manufacturing and sourcing decisions and hope for the same from retailers.’

19% of Singapore Businesses Have No emissions Plan in Place, Says Report

A plan to lower carbon emissions has not yet been developed by 19% of Singaporean respondents, according to the study titled “The role of the CFO and finance function in the climate transition: driving value and sustainability” was released by the Association of Chartered Accountants (ACCA), the International Federation of Accountants (IFAC), and the professional services firm PwC.

The is based on a survey that was conducted among 1,000 senior finance professionals worldwide.

The research revealed that 45% of respondents who do not currently have an emissions plan stated they do not currently intend to develop one, which is alarming. By contrast, 46% of respondents worldwide have not yet created an emissions plan, and 70% of those who have stated they do not currently intend to do so. Response rates are similar across the Asia Pacific region: 47% of participants have not yet created an emissions reduction plan, and 69% of those who have stated they do not currently plan to do so.

This is a significant problem given that successful transition planning to a low carbon business starts with the development of a robust emissions reduction plan.

The report also says that that involving CFOs and finance teams in the emissions reduction planning is likely to accelerate progress. They should embrace this because, although they may not always be the ‘owner’ of the sustainability agenda, CFOs can embed climate transition priorities into business planning and resource allocation, and enable high-quality sustainability reporting internally and externally.

The research recommends that finance teams need to develop the right skills and expertise to continue increasing their contribution to a climate transition. For CFOs, balancing the short-term operational priorities of the finance team whilst simultaneously upskilling and equipping the team to support the wider organisation’s net zero initiatives longer term must now be a critical imperative.

Helen Brand, chief executive of ACCA said: ‘The accountancy and finance profession can enable organisations to achieve their net-zero ambitions in a fair and inclusive way. They can also support the just transition to a low-carbon economy by helping their organisations to seize the associated business benefits. As COP28 begins, this report is a call to action for professional accountants everywhere to play their part in helping their organisations to reduce their carbon emissions and support the climate transition.’

Asmaa Resmouki, president of IFAC, commented, “The expertise of accounting and finance professionals in combatting climate change is absolutely essential if we are to make the progress the planet so desperately needs.”

“This report corroborates IFAC’s prior research into corporate disclosures on emissions targets and transition plans for achieving them. Companies need to improve the decision-usefulness of their transition plans and how they communicate them to stakeholders,” he said.

David Russell, finance transformation leader, PwC, added, ‘This report highlights a critical gap where some businesses lack a clear roadmap to meet their emissions targets and the ability to measure and report progress against their goals. It’s imperative for finance leaders not just to drive the change towards sustainability but also to build trust in the reporting of progress towards sustainability goals. CFOs can play a pivotal role in integrating environmental considerations into strategy, planning and reporting – ensuring that businesses not only contribute positively to the climate agenda but also adapt and thrive in a rapidly changing economic landscape.’

Green Finance Skills

At the recently held COP28, ACCA joined with technical services provider TUV Rheinland to explore how businesses of all sizes can be better supported to adapt, upskill and attract transition finance.

The session, Impact investing with purpose and precision based on sound accounting principles, also highlighted the critical role of accountants in supporting a just transition to a more sustainable world and driving forward equitable sustainability investment. Increasing sustainability and green finance skills across the world are a critical part of this, including for SMEs who are essential to a just transition.

Impact investors seek to generate positive and measurable social and environmental impact, alongside a financial return. Investing in businesses actively wanting to be part of climate-change solutions is essential to a sustainable future.

Helen Brand, Chief Executive, ACCA, who spoke at the event, said: ‘Both businesses and investors will gain from having high quality accounting and management information on climate-related issues. An important part of a just transition to a more sustainable world is ensuring that all businesses – whatever their shape or size – have access to the skills that are needed to enable this. It’s important that we build those skills across the world, and accountants are well-equipped to play a central role in this.’

She added: ‘The further development and adoption of consistent, comparable sustainability reporting standards will also be an important driver of change.’

Rakesh Vazirani, Head of Sustainability Services, Business Stream Products, TUV Rheinland, said: ‘Companies, especially SMEs are impatient to be resilient in the face of triple planetary crisis, and intent on avoiding greenwashing risks while on this journey. Harmonized due-diligence and impact measurement approaches that are context-sensitive but grounded in sound accounting practices can be the adrenaline for this decarbonisation-linked transition.’

“Impact measurement and management (IMM) has become increasingly sophisticated over the last decade, driven by growing interest in impact investing and the need to address more stringent sustainability reporting requirements from regulators,” he said.

Saqib Sohail, Responsible Business Projects, Artistic Milliners, said: ‘At Artistic Milliners, green isn’t just a trend, it’s our responsibility. We invest in long term eco-initiatives because the planet can’t wait. We’ve explored various financing options, and co-financing shines brightest. It builds bridges for ambitious decarbonization projects. We have a vision to factor environmental impact into our manufacturing and sourcing decisions and hope for the same from retailers.’