The Role of Accountants in Sustainability Reporting

Did you know? 

Accountants have a pivotal role in fighting climate change.  

As companies continue to experience mounting pressures to comply with environmental regulations, accountants are expected to see a higher demand for sustainability reporting in the next 10 years. 

What is sustainability accounting? 

Sustainability accounting is the process of measuring, reporting and improving a company’s environmental, social and governance (ESG) impacts. One of its key objectives is to increase the company’s economic growth while reducing its negative environmental impact. 

Role of accountants in sustainability reporting 

As an accountant, you’re expected to assist your company in driving forward its sustainable agenda. You must work closely with decision-makers to mitigate risks, add value and develop sustainable financing strategies. Here’s how. 

1. Sustainability reporting

You must deliver accurate corporate reports based on your company’s ESG initiatives. This information can help executives assess the impact of their business operations on society and the company’s bottom line.

2. Measurement and assessment 

You can also assist companies in measuring and assessing the:  

1. Benefits they can obtain from sustainable accounting practices 

1. Actual costs these activities can generate 

1. Potential damages and costs of activities that are harmful to the environment and society 

These pieces of information are essential for value creation. It will guarantee that your organization uses its resources properly. Moreover, it also prevents issues about “greenwashing”.

3. Assurance 

Your heavy reliance on data and appropriate methodology makes you a trustworthy source of information. With this quality, decision-makers can count on you to: 

1. Verify the accuracy of third-party information 

1. Identify sustainable investments from unsustainable ones 

1. Give assurance on the reliability of decisions made for the company’s ESG efforts 

1. Audit sustainability processes

4. Identifying opportunities 

Combining the roles we’ve discussed so far, it’s evident how you can help companies in the following areas: 

1. Reducing business costs 

1. Creating long-term value 

1. Improving investment portfolios 
   
   

Applying sustainable accounting practices is a win-win scenario for everyone — the environment, investors, businesses, government and all living beings. 

Reduce your carbon footprint through sustainable accounting 

Do you need help assessing your environmental impacts? Our accountants at D&V Philippines are at your service. We have paperless accounting solutions for CFOs and professional services firms. Download our whitepaper, Finding the Right Talents: D&V Philippines’ Solutions to Modern Accounting Firms, for more information. 

You can also contact us via email: marketing@dvphilippines.com.