ACCA, KPMG and FFI ; A Natural Fit
In their most recent joint paper which dealt with the Natural Capital Accounting (NCA), three top most campaigning and professional business companies said that the accountancy profession has a very significant role to play in the promotion of the NCA concept among investors, businesses, the government and society at large.
The ACCA, KPMG and the FFI ( Flora & Fauna International ) said that the rising interest in NCA is driving various initiatives in developing frameworks and tools for both advisers and entities. The NC dependencies and impacts, opportunities and risks are increasingly being seen as possible material issues that can be managed by investors and businesses.
This has a relevance that is direct for the professional accountant. Besides playing a major part in developing approaches that are common to NCA, members of the profession help in embedding the decision making application in business matters. These three bodies contend that such participation is taking place already and presents a real chance of performance improvement with regard to NC. More could however be done.
The leader of the ACCA business insight Faye Chua, cites that even if the accountancy profession is playing a significant role already, there is still more that can be done. The modern accountant has got a responsibility of ensuring that today’s businesses are capable of operating way into the future. Therefore, it is important that the finance function is good to the financial systems potential weaknesses in their ability of protecting the natural capital.
Just like everything has its own business opportunities and risks, the finance professionals need to ensure that they facilitate management decisions of high quality with regard to Natural capital.
According to KPMG, the accountant’s role is crucial as it connects the complex NCA world and aligns leaders on how they make their decisions, operate and have their performances reported to stakeholders. From this report, knowledge, skills and experience are undoubtedly available within the profession of accountancy and there are steps being taken towards a new culture which has got NC incorporated together with other issues of sustainability. What is required now is for these activities to be scaled and further embedment. It is the hope of FFI that this report will play a crucial role in bringing the so much required change.