ACCA’s Plan to Help Accountants in Tackling Nature Reporting
In order to tackle sustainability-related issues, the Association of Chartered Certified Accountants (ACCA) is grasping the principles, challenges and opportunities of nature related reporting.
With the Convention on Biological Diversity (CBD) COP16 occurring this week, the push to be at “Peace with Nature” — the theme of the meeting — is primary.
CBD COP16 plays a crucial role in finalising biodiversity strategies and sustainable targets globally.
ACCA is issuing a paper, called Empowering business: navigating nature-related reporting, to engage with boards and management on these vital issues.
ACCA
Founded in 1904 and containing 526,000 global members, ACCA provides resources for continuing professional development (CPD), including courses, networking opportunities and access to research.
Being so vast and diverse, the company is dedicated to committing to UN Sustainable Development Goals (SDGs):
- Quality Education (SDG 4): Accessible finance and accounting education
- Gender Equality (SDG 5): Gender equality within its global community and ensure an equitable work environment
- Decent Work and Economic Growth (SDG 8): Sustainable economic growth, advocating for productive employment and inclusive opportunities
- Reduced Inequalities (SDG 10): Reduce inequalities via inclusive practices in education and employment
- Sustainable Cities and Communities (SDG 11): Promotion of sustainable practices within businesses and local communities
- Climate Action (SDG 13): Commitment to achieving net-zero carbon emissions by 2030
- Peace, Justice, and Strong Institutions (SDG 16): Ethical standards and responsible business practices, strengthening institutional transparency
- Partnerships for the Goals (SDG 17): Working with partners to achieve climate goals
- Responsible Consumption and Production (SDG 12): Encouraging responsible financial practices and reporting frameworks.
The Regional Policy and Insights Lead for ACCA Jessica Bingham, says: "Nature is the foundation for all life on Earth.
“Our research suggests that an overwhelming number of organisations do not effectively assess and communicate their impacts and dependencies on nature.”
What is CBD COP16?
CBD COP16 refers to the 16th meeting of the Conference of the Parties (COP) under the United Nations Convention on Biological Diversity (CBD).
Being held in Columbia, the focus of CBD COP16 is to solidify the last meeting, COP15 along with current SDGs.
If all goes to plan, CBD COP16 will reverse biodiversity loss, improve Climate change and sustainability by 2030 and achieve long-term goals by 2050.
The key aims of CBD COP16 are to:
- Implement the Kunming-Montreal Global Biodiversity Framework (KMGBF): Develop action plans and establish monitoring mechanisms to track progress towards halting biodiversity loss by 2030
- Integrate biodiversity into key sectors: Ensure biodiversity protection is mainstreamed into the food, energy and finance sectors to harmonise conservation efforts with economic growth
- Secure and enhance biodiversity financing: Increase funding commitments and establish new financial mechanisms to support global and local biodiversity initiatives
- Incorporate local and indigenous knowledge: Elevate the voices of indigenous peoples and local communities to ensure that traditional ecological knowledge is central to biodiversity strategies.
COP16 collaboration
Corporate Sustainability Reporting Directive (CSRD) requires organisations to disclose their impacts on nature and sustainability.
The International Sustainability Standards Board (ISSB) has recently announced that it plans to carry out research into biodiversity, ecosystems and ecosystem services as part of its work plan over the next two years as part of COP16.
These adaptations require accountants to increase their knowledge in biodiversity and sustainability.
Jessica says: "Nature-related reporting is increasingly recognised as an essential component of organisational reporting.
“The role of accountants in this domain is pivotal in driving sustainable business practices and ensuring long-term financial health and environmental stewardship.”
In collaboration with the University of Glasgow, ACCA discovered 95% of 183 early adopters of disclosures recommended by The Taskforce on Nature-related Financial Disclosures (TNFD) have policies or commitments to halt and reverse biodiversity loss.
However, only 35% have policies and commitments informed by 2030 and 2050 global diversity frameworks (GBFs).
Help for the future
Organisations already working with accountants on Task Force on Climate-related Financial Disclosures (TCFD) allow for a head start on being more sustainable.
TCFD allows development in nature related reporting, causing more resilience and sustainable impact management — perfect for the soon approaching Paris Agreement in 2030.
The rise of nature related reporting is an opportunity for individual accountants and the profession to improve on:
- Strategic planning and sustainability reporting
- Value creation
- Risk management
- Regulatory compliance
- Partnership development
- Decision financing advisory processes.
CBD COP16 will help accountancy firms by enhancing reporting standards, creating new biodiversity-related financial mechanisms and integrating biodiversity into financial practices.
COP16’s focus on biodiversity financing and aligning business practices with global biodiversity targets will offer opportunities for accountancy firms to expand their services in compliance, sustainability strategy and client advisory.
The goals of CBD COP16 are relevant to organisations globally and ACCA is a model example of the steps everyone should be taking.
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