Chapter 5 -Role of the professional accountant in sustainability

What are three ways accountants are involved in sustainability?

External reporting, providing assurance, and identifying risks/opportunities.

What is the purpose of sustainability reporting?

To communicate sustainability information to stakeholders and promote transparency and accountability.

What is financial, impact, and double materiality?

Financial = affects investors. Impact = affects people/environment. Double = both.

What frameworks cover risks and opportunities?

TCFD, IFRS S1/S2, and CSRD. All use four areas: governance, strategy, risk management, metrics and targets.

What frameworks cover impacts?

GRI (voluntary, wide stakeholders) and CSRD (mandatory, covers both impacts and risks/opportunities).

What is the EU CSDDD?

Requires companies to identify and address human rights and environmental risks across their value chain, and adopt a climate transition plan.

What are the benefits of sustainability assurance?

Adds credibility, improves investor confidence, reduces greenwashing risk, and supports compliance.

What is the difference between reasonable and limited assurance?

Reasonable = positive ("disclosures are reasonable"). Limited = negative ("nothing suggests they aren't"). Limited gives less certainty.

What are the Bribery Act 2010 and Modern Slavery Act 2015?

Bribery Act = strict anti-bribery law. Modern Slavery Act = requires supply chain scrutiny and a published Modern Slavery Statement.

How do accountancy bodies drive sustainability?

Education, advocacy, research, supporting members, and promoting transparency.

How can an accountancy firm be more sustainable?

Aim for net zero, apply the 4Rs, support employee wellbeing, promote diversity, and report transparently.