25 February 2020

A4S: Call to action in response to climate change

13 chief executives representing 14 accounting bodies have signed a call to action in response to climate change. The statement includes eight actions which accountants are called upon to take in response to the climate emergency. It also includes commitments from the bodies themselves in support of their members.

The call to action highlights that climate change represents an economic, social and business risk – a risk that accountants from across the world must take action on. The impacts of climate change are already being felt throughout the world and urgent action is needed to limit its negative effects. With climate change come potentially profound negative economic consequences including impacts on production, financial stability, living standards and employment, and more widely on social cohesion and political stability. A4S recognizes that mitigation and adaptation will rely, to a very substantial degree, on both macro and micro economic policies and the associated market mechanisms into which accounting practices are embedded. Climate change nevertheless presents transformation opportunities. 

Better disclosure will facilitate more informed decision making while enabling market forces to drive efficient allocation of capital and support a smooth and just transition to a net zero greenhouse gas emissions economy. Accounting profession can play an important role in ensuring transparency and appropriate disclosure around climate related risks and opportunities, which in turn will help to maintain financial stability.

The regulatory framework in any jurisdiction needs to provide stability and future certainty to enable the necessary transition. To encourage and achieve business investment in technology and innovation, decarbonization strategies, budgets and targets must be established to allow for effective planning.

Call to the action on A4S

Related press release on Accountancy Europe