Diese Präsentation wurde erfolgreich gemeldet.
Die SlideShare-Präsentation wird heruntergeladen. ×

Sustainability and the role of the accountant

Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Wird geladen in …3
×

Hier ansehen

1 von 46 Anzeige

Weitere Verwandte Inhalte

Diashows für Sie (20)

Ähnlich wie Sustainability and the role of the accountant (20)

Anzeige

Aktuellste (20)

Sustainability and the role of the accountant

  1. 1. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Sustainability and the role of the accountant Francesca Sharp, Sustainability Executive, ICAEW
  2. 2. BUSINESS WITH CONFIDENCE icaew.com Agenda 1.What is Sustainability and why is it important? 2.What is the role of business? 3.What drives businesses to be sustainable? 4.What role do accountants play in sustainability? 5.What has ICAEW been doing?
  3. 3. BUSINESS WITH CONFIDENCE icaew.com 1. What is sustainability and why is it important to us all?
  4. 4. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Definitions – what is sustainability Sustainability: development that meets the needs of the present without compromising the ability of future generations to meet their own needs (The Brundtland Report) Sustainable development: the process by which sustainability is achieved and maintained Sustainable business: a sustainable business is one that adopts business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining and enhancing the human and natural resources that will be needed in the future
  5. 5. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Why is sustainability important: Costing the Earth All figures are 2010. Sources: Costanza et al, World Bank, Earth Policy Institute, There is a debate regarding the total economic value of ecosystem services
  6. 6. BUSINESS WITH CONFIDENCE icaew.com 2. What’s the role of Business?
  7. 7. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 The social responsibility of business is to increase profits. - Milton Freedman, New York Times, 1970
  8. 8. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 It may be in the long-run interest of a corporation that is a major employer in a small community to devote resources to providing amenities to that community or to improving its government. That may make it easier to attract desirable employees, it may reduce the wage bill, or lessen losses from pilferage and sabotage, or have other worthwhile effects. - Milton Freedman, New York Times, 1970
  9. 9. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 3. What drives businesses to be sustainable?
  10. 10. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Premium will increasingly be defined in terms of sustainability and environmental compatibility - Dr. Norbert Reithofer, Chairman, BMW board
  11. 11. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Businesses need to think about the way they can use their resources differently and their impact on natural capital. We are not talking about abandoning capitalism – we are talking about redefining the way business is done so that it has a viable future. Ian Cheshire, Group Chief Executive, Kingfisher
  12. 12. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 People always think that to do the right thing costs you more. That is not true at all. It can actually ignite innovation and lower your costs. Paul Polman, CEO, Unilever
  13. 13. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Corporate social responsibility is not just about managing, reducing and avoiding risk, it is about creating opportunities, improving performance, making money and leaving the risks far behind.” Sunny Misser, CEO, AccountAbility
  14. 14. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 How do markets work to drive sustainability?
  15. 15. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Market Activities
  16. 16. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Corporate Strategy Supply Chain Pressure
  17. 17. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Corporate Strategies Unilever •Proactively committed to a bold sustainability strategy, reaching the following targets by 2020: – Halve their greenhouse gas emissions, water usage and waste – Source 100% of agricultural raw materials, sustainably – Link more than 500,000 smallholder farmers and small-scale distributors into supply chain. Benefits •Drives consumer preference •Wins with customers (i.e. retailers, with sustainability agendas of their own) •Fuels sustainable innovation •Grows markets (developing countries, with domestic sustainability challenges) •Generates cost benefits (energy/waste reduction = save £) Source: Sustainable Living Plan Report, November 2010
  18. 18. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Supply Chains McDonald’s • The McDonald’s supply chain is a complex web of direct and indirect suppliers. • Whilst the company isn’t necessarily known for its sustainability credentials in other areas of its business it is in supply chain. • High standards for quality, safety, efficiency and sustainability are laid down for supplier, which are extended to their suppliers’ suppliers and so on. • Overall, McDonald’s and its suppliers are collectively focused on three areas of responsibility: ethics, environment, and economics. • To guide the creation and oversight of issues related to sustainability, an additional global governance structure was created in 2007 called the Sustainable Supply Steering Committee (SSSC). • The SSSC is responsible for guiding McDonald’s toward its vision for sustainable supply by identifying global priorities and ensuring progress in ways that complement local priorities and efforts. In addition, each of its global product leaders takes the lead to include product-specific sustainability initiatives in their strategies. • Because of its size and power McDonald’s is able to put pressure on suppliers to adopt more sustainable practice
  19. 19. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Stakeholder Engagement Voluntary Codes
  20. 20. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Stakeholder Engagement Coca-Cola •Built a bottling plant in India in 2006 •It heavily drained the aquifer and negatively affected the ecosystem •Affected the health of its own employees and local people •Effectively lost its licence to operate, sales fell off and share value declined •Coca-Cola learned hugely from this exercise and when the company entered the Chinese market they worked with local communities on water usage, sharing with them their lessons in efficiency. Source: www. googguide.com
  21. 21. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Voluntary Codes Supermarket Industry in the UK •In 2006, the UK supermarket industry collectively targeted to halve the use of plastic carrier bags by 2009 •In order to promote the use of reusable carrier bags: – M&S started charging 5p for each plastic bag – Tesco introduced a Green Club cards points scheme – Waitrose started selling ‘Bags for Life’ for 10p – Sainsbury gave away over 15 million ‘Bags for Life’ Benefits •After one company commits to reducing waste, competitors follow •Creates competitive pressure to cooperate Source: The Independent
  22. 22. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Rating and Benchmarking
  23. 23. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Rating & Benchmarking PUMA • Puma’s environmental profit and loss account: new way to rate and benchmark companies. • Forward looking – whilst arguably not the case yet but hopefully it will encourage more companies to head in that direction & then allow these companies to be compared. • This will enable investors and other stakeholders to see what environmental impact the companies they deal with have
  24. 24. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Taxes and Subsidies Tradable Permits Requirements and Prohibitions
  25. 25. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Taxes and Subsidies Green Car Subsidies •In 2009 Lord Madelson, (Business Secretary) and Geoff Hoon (Transport Secretary) announced a new subsidy for electric cars •Consumer subsidies of £2000 - £5000 for every hybrid or electric car purchased Benefits •Provides incentives for consumer adoption of low emission cars •Stimulates economic growth of the clean tech industry in the UK Sources: www.FT.com
  26. 26. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Tradable Permits European Union Emissions Trading Scheme Launched in 2005 it is the first large emissions trading scheme in the world, and remains the biggest It was launched in combat climate change and is a major pillar of EU climate policy. As of January 2013, the EU ETS covers more than 11,000 factories, power stations The installations regulated by the EU ETS are collectively responsible for close to half of the EU's emissions of CO2 and 40% of its total greenhouse gas emissions Benefits •Introduces effective market mechanisms to promote sustainability •Creates new markets for “allowances” •Requires cooperation among high impact public and private stakeholders Source: www.decc.gov.uk
  27. 27. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Requirements and Prohibitions Community Interest Companies •Community interest companies (CIC) are a new type of limited company designed specifically for those wishing to operate for the benefit of the community rather than for the benefit of the owners of the company. •Designed for “social enterprises” that want to use their profits and assets for the public good Benefits •Tax benefits •Unique legal identity for “social enterprises” •Rewards companies that are making positive social and environmental impact Source: www.cicregulator.gov.uk/
  28. 28. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 4. What role do accountants play in sustainability?
  29. 29. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 The role of accountants is to capture, report and communicate accurate and reliable decision-useful information and to assure that information so that people can trust it. Information and Reporting Assurance process
  30. 30. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014
  31. 31. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Can Accountants Save the World?
  32. 32. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Inspiring innovation and debate about the future of the profession
  33. 33. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 5. What has ICAEW been doing?
  34. 34. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Thought leadership programme
  35. 35. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Convening the debate: asking the right questions
  36. 36. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014
  37. 37. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014
  38. 38. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Natural Capital Coalition 1. Valuing Natural Capital in Business: Towards a Harmonized Framework - This outlines the Protocol project, provides a high level summary of the stock take and a proposed straw man/draft outline for the Natural Capital Protocol as a starting point. 2. Valuing Natural Capital in Business: Taking Stock- Existing Initiatives and Applications – This is a more detailed compilation summarising existing initiatives to provide a baseline on the existing landscape. This is intended to be a useful resource to demystify the growing volume of initiatives in this space. www.naturalcapitalcoalition.org
  39. 39. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Outside insights: other people’s views
  40. 40. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Turning questions into answers: guidance
  41. 41. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Qualifications
  42. 42. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Representation
  43. 43. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 ICAEW Sustainability Policy As a professional membership organisation, we represent a common voice for our members and the profession. We believe that the successful business of the future will be a sustainable business. As a profession we support economic development and prosperity and as an organisation our vision is to have a net positive impact on the economy, society and environment. We will achieve this by: • The way we work, embedding sustainability in everything that we do; • Making sustainability the cornerstone of our reputation and influencing others to adopt the same goal • Ensuring that sustainability is at the heart of our qualifications, our capacity building activities and the continuing professional development of our staff and members.
  44. 44. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 ICAEW Community of Interest www.icaew.comBUSINESS WITH CONFIDENCE www.icaew.com Getting our members to think about their work on social mo- supporting them in doing so. 10% reduction in paper consumption in 2011 Research-comparison (annually) between mem- bers and non members Disseminating messages about the support we give to members to achieve their sustainable goals. Using the shared values with/ in our membership and to ICAEW to support the development of key public policy issues. Financial capability community project ‘At house with Money’ Next Generation (ACA) Financial capability community project ‘At house with Money’ Unltd* Future (Sustainable Social Entrepreneurship Premium positioning of ICAEW as leaders in sus- Financial capability- Schods Programme ‘use your expertise’ The Finance Innovation Lab
  45. 45. BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014 Get in touch www.icaew.com/sustainability www.icaew.com/bsp www.thefinancelab.org www.auditfutures.org francesca.sharp@icaew.com
  46. 46. A world leader of the accountancy and finance profession BUSINESS WITH CONFIDENCE icaew.com© ICAEW 2014

Hinweis der Redaktion

  • Market-based approach to sustainability
  • Market-based approach to sustainability
  • Market-based approach to sustainability
  • Consumer engagement  information – how is it being distributed  reporting must be useful! Information age = consumers are more engaged
  • UK – Flipped – pressures = fixed; Business model effected (strategy and opportunity; Compliance and efficiencies are important  business = change if in the right direction; sustainability = opportunity
  • Market-based approach to sustainability
  • Market-based approach to sustainability
  • Price of carbon = tax; BUT if we know the volume and know where we want to get to  ration and let the market find the price
    BUT we don’t do rationing very well (Kytoto  airline excluded); UK = Carbon Reduction = fiscally neutral


    Theoretical model
    Challenges: Polictical/ practical issues; monitoring
  • LAW!
    Child Labour
    Morally unaccetable

    There are limits
    Social justice
    No growth becomes a challenge (2/3rd lives less than $2/day

    WEST = artificial manufacturing
    SOUTH = depend on ecosystem
    Complicated debate (Nike and child labour)
    Prohibition = complex debate

  • In order for these Market system work we need flows of information
    Complex adaptive systems = information and feedback loops = ability to adapt and change

    Accurate flows of trusted information so that decisions can be made
    Sustainability relies on TRUSTED Information
    Science of decision making
    Consumers cannot make decisions
    Investors can’t make decision unless they know impact

  • The second half of the 20th century was remarkable for the sheer number of individual entrepreneurs, thinkers and leaders. The first decade of the 21st century marked the birth of new social movements, new organisational dynamics and new ways for people to connect and work together. This new paradigm of social organisation will welcome modern networks of professionals – dynamic, open, responsible and progressive.

    AuditFutures aims at repurposing the role of the audit and accounting professions for 21st century society. We want to look beyond marginal and incremental changes in audit, mandated by the business and regulatory landscape. If audit has an aspiration to serve society and remain relevant to the public interest, it has to engage with a greater range of stakeholders and invite critical thinking and constructive debate.

    We hope to become the catalyst for change and to inspire the profession to take responsibility in determining it its own fate by leading the discussion on future society. By working across the audit and accounting professions at international level, we are building programmes to help and enable innovative thinkers and ‘tempered radicals’ to develop thinking and ideas on the future of audit.

    A fundamental aspect of our work is to invite diverse and divergent perspectives to the debate. No single organisation can tackle the wider systemic issues that we are facing today so we are working by building partnerships and collaborations. We believe that having an outside view will surface innovative ideas and perspectives. This can stimulate the debate beyond our comfort zone and can generate creative solutions. Our approach combines cross-sectoral and multi-disciplinary work that reflects the position and ambition of the profession.

    We focus on thought-leading ideas that have the potential to drive systemic effect and develop solutions for wider impact. By taking an action research approach, we are creating a community of practice to improve the way we work on specific issues.

×