The Association of Chartered Certified Accountants (ACCA) used its annual Sustainability Conference on Earth Day to warn that companies stepping away from sustainability are exposing themselves to growing risk.
The online conference was attended by finance professionals from more than 100 countries.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The ACCA told delegates that businesses that downplay sustainability “aren’t just falling behind; they are taking on risk they haven’t priced in”. It added that the “cost of inaction is already showing up on the balance sheet”.
The professional accounting body pointed out that in an environment shaped by trade barriers, geopolitical challenges and changing rules, some organisations have eased off on earlier commitments.
According to the ACCA, this retreat includes deprioritizing net-zero plans, cutting back environmental, social and governance (ESG) initiatives and delaying action, “waiting for things to change”.
The organisation warned: “It may be the most expensive mistake they make.”
The opening session was chaired by Sharon Machado, the ACCA’s head of sustainable business.
Machado said: “Your sustainability strategy is not something that sits on the side. It is integrated within the business. It is about risk management.
“When businesses think about geopolitical disruption, supply chain fragility, commodity availability or the impact of extreme weather on operations, they are, whether they recognise it or not, thinking about sustainability.
“The language of risk management and the language of sustainable business describe the same terrain.”
The ACCA added that the consequences of sustainability decisions are already playing out in day-to-day business. Climate change has impacted the cost of insurance, while customers and procurement teams are increasingly asking suppliers to demonstrate credible decarbonisation plans.
At the same time, access to cheaper capital is becoming more closely linked to sustainability performance. Speakers at the session also argued that sustainability should be viewed as a source of financial upside as well as cost.
When embedded into strategy, they said, it can open new revenue opportunities, lower operating expenses, improve resilience, enhance brand value and create competitive advantage.
