A new analysis from the International Federation of Accountants (IFAC), the Association of Chartered Accountants (ACCA), and professional services firm PwC indicates a worrying trend among Asia Pacific corporations as world leaders convene for COP 28. According to a report titled “The Role of the CFO and Finance Function in the Climate Transition: Driving Value and Sustainability,” which conducted a global poll of 1,000 senior finance professionals, 47% of those surveyed in the Asia Pacific area did not have measures in place to reduce their emissions.
Unbelievably, 69% of people without an emissions plan don’t intend to create one. This percentage is consistent with international data, since 46% of respondents did not have any intentions for emissions, and 70% did not have any plans to create any.
The importance of CFOs and finance teams in accelerating the achievement of carbon reduction targets is emphasized in the report. Essential stages include enabling high-quality sustainability reporting, empowering finance teams to support net-zero projects, and integrating climate change priorities into company planning and resource allocation.
The chief executive of ACCA, Helen Brand, highlights the role that finance and accounting professionals have in promoting sustainable practices. “The accountancy and finance profession can enable organizations to achieve their net-zero ambitions fairly and inclusively,” she said.
In line with this, Asmaa Resmouki, president of IFAC, emphasizes how important accounting knowledge is in the fight against climate change. “The expertise of accounting and finance professionals in combatting climate change is essential if we are to make the progress the planet so desperately needs.”
PwC’s David Russell, leader of financial transformation, emphasizes the importance of precise roadmaps and reliable measuring tools. “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.”
Businesses around the Asia Pacific area should take note of this study and act now to reduce emissions. Incorporating sustainability into corporate plans is crucial for CFOs and finance teams, as it guarantees long-term business resilience in addition to environmental responsibility.