Green skills a ‘must-have’
Companies can create value and foster company longevity by taking into consideration how they operate in ecological, social and economic environments. As the expectations on corporate responsibility increase and transparency becomes more prevalent, companies are recognising the need to act on sustainability.
However, research by ACCA and the Institute of Management Accountants (IMA) has found that businesses are underinformed on climate finance opportunities and climate risk management: 31% of respondents to ACCA’s Global Economic Conditions Survey said they are not considering using green finance products.
It is vital that finance professionals address this failure. Lenders increasingly offer attractive ‘green rates’ to organisations that meet sustainability requirements, which means green finance is cheap capital that can keep businesses in business. Professional accountants’ ability to understand the green finance options needed for the transition to net zero is key to equipping organisations with this expertise.
Skill up
In response, ACCA has published Green finance skills: the guide, as well as developing a climate finance course with CFA Institute.
‘In a world where key stakeholders are demanding more from companies and their net-zero objectives, green finance is fast becoming the hot topic for the finance profession as it explores financing options,’ says ACCA’s head of sustainability Emmeline Skelton.
‘We need to be one of the groups driving change by helping organisations adapt to build a more sustainable future. Sustainability is not a nice-to-have; it is quite simply a must-have. Green financing can supply organisations with the funding needed to make the net-zero transition, but tapping that financing requires finance professionals with the appropriate skills, expertise and know-how.’
More information
Find ACCA and CFA Institute’s CPD module on climate finance
See also the AB article ‘Accountants lead on green change’
This article was first published in AB magazine March 2023