Presentation given by Stathis Gould, Senior Technical Manager at the International Federation of Accountants, on Business Models for a Green Economy for the Global Virtual Conference held by the Association of Chartered Certified Accountants (ACCA).

1. Business Models for a Green
Economy
Stathis Gould
Senior Manager
International Federation of Accountants
Global Virtual Conference
ACCA
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2. Context
Sustainability = Green + Inclusive
• Green: reducing natural resource consumption and
environmental impacts
• Inclusive: reducing poverty
• Strategies for inclusive growth and achieving
environmental sustainability should be interlinked
• From trade-off to synergy
– United Nations Global Compact
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3. Context
Global Context, Country and Company Specific
• Sustainability and environmental focus
– US: B Corps
– India: Paternalistic
– China
• Moving beyond compliance
• Opportunity: focus on clean tech investment
• All countries and organizations at different stages of
development
• Sector specific
• Large versus small
• Niche versus traditional
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4. Vision
A Sustainable (Green) Business Model
• What is required?
– A sustainable long term vision and sustainable leadership
• Resource efficient companies typically produce higher
returns
– Incorporating sustainability/green at strategy, operational, and reporting
levels
– Focusing on the longer term
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5. IFAC Sustainability Framework
Vision and Leadership
• A sustainable long term vision and sustainable leadership
– Example: Unilever
“Our vision is to create a better future in which people can improve their
quality of life without increasing their environmental footprint.”
• Reinforcing governance structures
– Example: ITC
A sustainability management structure that helps to mainstream
sustainability into business strategy.
• Example: Tata
Remuneration linked with the organization’s performance in sustainability.
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6. IFAC Sustainability Framework
Establish Goals and Targets
• Demonstrate commitment
• Show progress
• Setting strategic targets that are meaningful at various
levels
– Individual subsidiaries
– Divisions
– Departments
• Example: ITC
– Carbon, water and waste positive
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7. IFAC Sustainability Framework
Energy Efficiency and Waste Minimization
• Initiatives that reduce environmental impacts also generally
reduce operating costs
– Identify large environmental costs that could be reduced
– Monetize procedures for costs, savings, and revenues
– Small (and no cost) changes can lower energy costs and reduce carbon
emissions
– Carbon footprinting and accounting
• Example: Veriform
– High precision sheet metal and plate manufacturing (c50 people)
– Between 2006 and 2008 invested $46,186 in over 42 individual energy
saving projects: annual operating costs have been reduced by $89,152.
Expected savings to be around $1.5m over 10 years.
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8. IFAC Sustainability Framework
Embedding into Business Practices
• Embed into management control cycle
– Planning
– Performance management/measurement
– Internal control and audit
– Integrated systems
– Reporting
• Example: Proctor & Gamble
– Planning and Control System of Objectives-Goals-Strategies-Measures
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9. IFAC Sustainability Framework
Embedding Sustainability & the Role of Accountants
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10. Innovation Examples
• Interface (carpet tiles)
– Resource input
• Unilever
– Product
• Giveacar
– New business model
• PUMA
– Reporting
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11. IFAC Professional Accountants in Business
Questions?
• IFAC Sustainability Framework available at
www.ifac.org/PAIB
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