As world leaders gather for COP 28, ACCA (the Association of Chartered Accountants), IFAC (the International Federation of Accountants) and professional services firm PwC released a new report: The role of the CFO and finance function in the climate transition: driving value and sustainability, based on a survey of 1,000 senior finance professionals around the world.

The research reveals that almost half of respondents (46%) have yet to produce a plan for reducing their carbon emissions. Alarmingly, 70% of those respondents without an emissions plan say they currently have no intention of developing one. This is a significant problem given that successful transition planning to a low carbon business starts with the development of a robust emissions reduction plan.

The report also says that that involving CFOs and finance teams in the emissions reduction planning is likely to accelerate progress. They should embrace this because, although they may not always be the ‘owner’ of the sustainability agenda, CFOs can embed climate transition priorities into business planning and resource allocation, and enable high-quality sustainability reporting internally and externally.

The research recommends that finance teams need to develop the right skills and expertise to continue increasing their contribution to a climate transition. For CFOs, balancing the short-term operational priorities of the finance team whilst simultaneously upskilling and equipping the team to support the wider organization’s net zero initiatives longer term must now be a critical imperative.

Helen Brand, chief executive of ACCA said: ‘The accountancy and finance profession can enable organizations to achieve their net-zero ambitions in a fair and inclusive way. They can also support the just transition to a low-carbon economy by helping their organizations to seize the associated business benefits. As COP28 begins, this report is a call to action for professional accountants everywhere to play their part in helping their organizations to reduce their carbon emissions and support the climate transition.’

Asmaa Resmouki, President of IFAC, commented: "The expertise of accounting and finance professionals in combatting climate change is absolutely essential if we are to make the progress the planet so desperately needs."

"This report corroborates IFAC’s prior research into corporate disclosures on emissions targets and transition plans for achieving them. Companies need to improve the decision-usefulness of their transition plans and how they communicate them to stakeholders."

David Russell, Finance Transformation Leader, PwC, added: "This report highlights a critical gap where some businesses lack a clear roadmap to meet their emissions targets and the ability to measure and report progress against their goals. It’s imperative for finance leaders not just to drive the change towards sustainability but also to build trust in the reporting of progress towards sustainability goals. CFOs can play a pivotal role in integrating environmental considerations into strategy, planning and reporting – ensuring that businesses not only contribute positively to the climate agenda but also adapt and thrive in a rapidly changing economic landscape."

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

Have you heard? We have a new standard for audits of less complex entities—known as ISA for LCE—coming on December 6. Learn more about it in our new video.

The International Federation of Accountants (IFAC) is pleased to announce Mr. Charles Tilley OBE, FCMA, CGMA of the UK, as the esteemed recipient of the 2023 IFAC Global Leadership Award, celebrating his influence and dedication to the global accountancy profession.

Charles Tilley, a renowned advocate for integrated reporting and integrated thinking, played a pivotal role in the development of the Integrated Reporting Framework, the conception of the International Integrated Reporting Council (IIRC), and later became CEO of the IIRC. He oversaw the merger of the IIRC and the Sustainability Accounting Standards Board (SASB) into the Value Reporting Foundation, which was subsequently integrated into the IFRS Foundation. His ongoing contributions to integrated reporting and thinking continued while chairing the IFRS Foundation’s Integrated Reporting and Connectivity Council, providing advice to the Foundation’s trustees and to its two standard-setting boards.

For 15 remarkable years, as the Chief Executive of the Chartered Institute of Management Accountants (CIMA), Mr. Tilley brought about transformation in the positioning of management accounting and professional accountants in business and the public sector within the profession and in society. His relentless efforts have elevated the relevance of the profession in the context of the needs of organizations and capital markets. His post-2008 global financial crisis endeavors focused keenly on fortifying trust in the capital markets, emphasizing ethics and good governance and the critical role of professional accountants in long-term value creation.

Mr. Tilley’s visionary leadership was further evident when he orchestrated a landmark partnership culminating in the formation of the Association of International Certified Professional Accountants and the inception of the Chartered Global Management Accountant (CGMA) designation. 

Throughout his career, Mr. Tilley has steered the direction of management accounting thought leadership. This encompasses developments in both external and internal reporting, performance management, and the progressive evolution of the CFO and finance function roles. Under his visionary leadership from 2014 to 2019, the Professional Accountants in Business (PAIB) Advisory Group underwent transformative changes, fostering enhanced collaboration and thought leadership on behalf of the global profession. His tenure witnessed the inception of significant initiatives such as the future-ready CFO series and the exploration of the CFO's role in value creation.

This designation now stands as a global hallmark of excellence in management accounting and finance leadership.

"Charles is not only a trailblazer in the accountancy realm but also an inspirational figure who has tirelessly championed change, innovation, and ethical practices," remarked IFAC President Asmaa Resmouki. "His commitment to the profession and his transformative initiatives, including the creation of the CGMA designation and his work in integrated reporting and advancing management accounting, underline his deservingness of this recognition."

On receiving this award, Mr. Tilley remarked “I am delighted and honoured to receive this prestigious award. Over a fifty-year accountancy career including partnership at KPMG and investment banking CFO roles, the profession has looked after me well and I am pleased to have contributed to its development. It has a critical role and needs to remain dynamic and responsive to the ever-changing needs of business and society.”

Instituted in 2017 by the IFAC Board, the IFAC Global Leadership Award in Honor of Robert Sempier celebrates individuals for their unparalleled contributions to the worldwide accountancy profession. The tribute salutes the legacy of Robert Sempier, IFAC’s inaugural executive director, who significantly shaped the profession's global landscape.

The honor was conferred during IFAC’s Council meeting held on November 15, 2023.

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.