The journey from environmental protection to the broader sustainability agenda has been a long and evolving process. From early conservation efforts to the adoption of the Paris Agreement, the international community has steadily moved towards more formalised and coordinated frameworks to address the complex and interrelated challenges.

PAOs are influential in shaping business practices and governance.  They have a responsibility not only to their members but also to society at large to lead by example in the transition to a low-carbon economy. Through a combination of advocacy, education, and direct action, PAOs make meaningful contributions to the sustainability agenda.In October 2021, 14 chief executives of the Accounting Bodies Network (ABN) – a collaboration between Accounting for Sustainability, an initiative established by His Royal Highness The Prince of Wales (A4S) and PAOs across the globe – signed a commitment to achieve net zero greenhouse gas (GHG) emissions within their own operations as soon as operationally possible.This joint pledge emphasises the need for collective action to reduce carbon footprints and how PAOs can make meaningful changes in their own operations. Pursuant to the commitment, all ABN members signed up to five core principles:

1. Influence and inform
2. Lead by example
3. Drive thought leadership
4. Collaborate through the International Network
5. Incorporate accounting for sustainability within training and professional education

While the ABN commitment did not require signatories to adhere to a specific timeframe, the urgency of addressing climate change cannot be overstated. The true test lies in translating these commitments into meaningful actions.Transition to net zero is a lengthy and complex journey that demands consistent effort and adaptability over time. The ABN fosters a supportive network that accelerates the collective progress towards achieving net zero and serves as a platform for the PAO signatories, offering a collaborative space to share experiences and exchange insights.Read more about PAOs experiences towards net zero commitments from the A4S website “Our Journey: The Accounting Bodies Road to Net Zero”.

What is the progress?

At the recent CAPA Members Forum entitled “PAOs Sustainability Agenda and Net Zero Commitments” held in November 2024, several PAOs took the stage to share their experiences in the sustainability and net zero journey.

Reducing a PAO’s Own Emissions

PAOs can contribute to reducing GHG emissions by setting internal sustainability goals. The collective impact may not be significant in achieving overall global goals, but leading by example is. Establishing a carbon footprint baseline is essential, encompassing direct emissions (Scope 1), energy-related emissions (Scope 2), and supply chain emissions (Scope 3). For PAOs, Scope 2 and 3 are typically the largest contributors.

The Japanese Institute of Certified Public Accountants (JICPA) started to measure its carbon emissions in 2022 and the Roadmap towards Net Zero was developed. This aligned with Japan’s 2030 target as a country to cut GHG emissions by 46% from the 2013 level.

Key measures in the roadmap include improving energy efficiency in their headquarters[1], including adopting renewable energy and implementing paperless operations; promoting sustainable travel policies such as remote working and virtual meetings; and reducing emissions from purchased goods and services. These steps aim to achieve near-term Science-Based Targets initiative (SBTi) goals[2] and net zero emissions.

Whilst some PAOs have established plans, others remain at the start of the journey. Knowing others are progressing at pace, should encourage others to prioritise work in this space.

Establishing and Monitoring Commitments

Governance and ownership are essential for effective implementation, especially for PAOs where leadership terms can be limited.

The Malaysian Institute of Accountants (MIA) exemplifies this with the MIA Sustainability Blueprint for the Accountancy Profession. Conceptualised in 2022, the Blueprint was developed by a dedicated Task Force and is overseen by the MIA Council, supported by various committees.

A Sustainability Committee, comprising member volunteers and Institute personnel, takes ownership of integrating sustainability into the profession, with a dedicated department reporting to the CEO. This collaborative approachensures accountability and facilitates long-term ownership.

The Blueprint sets sustainability aspirations, addresses challenges, and enables accountants to lead in sustainability across industries. It identifies four key aspirations and provides principles tailored to three levels of sustainability maturity, guiding accountants in various sectors.

Tracking Progress on Sustainability

The Association of Chartered Certified Accountants (ACCA) achieved a significant milestone by becoming the first global accountancy body to have its net zero targets verified by the SBTi, aiming for a 50% carbon emissions reduction by 2030 and achieving net zero by 2045.

This achievement not only underscores ACCA’s leadership and commitment to sustainability, but also sets a benchmark for the profession.

ACCA has long been at the forefront of promoting transparent and forward-looking reporting practices. A pioneer in integrated reporting, ACCA introduced its first integrated annual report in 2011-12 as part of the International Integrated Reporting Council’s (IIRC) Pilot Programme and has maintained this practice, with the 2023-24 Integrated Report marking its 13th edition.

Advocacy, Support and Training

PAOs have an influential role in advocating for and establishing frameworks, standards and policies that drive national and global agendas for sustainability.

In India, a nation with 1.4 billion people and unique developmental challenges, the pledge to achieve net zero emissions by 2070 reflects a significant commitment.  In 2021, the Securities and Exchange Board of India (SEBI) launched the Business Responsibility and Sustainability Reporting framework, which is mandatory for the top 1,000 listed companies.

The Institute of Chartered Accountants of India (ICAI) has been instrumental in supporting this, working in collaboration with SEBI.  Through its Sustainability Reporting Standards Board (SRSB), ICAI has developed guidelines, resources, and training to equip accountants with the skills needed to manage climate and sustainability challenges. It also collaborates with national and international bodies to foster a sustainability reporting ecosystem, promoting a greener, low-carbon economy in India.

Capacity Building: A Cornerstone to Success

Recognising the growing importance of sustainability, many of the PAOs identified capacity building as a cornerstone for achieving impactful sustainability outcomes.

This commitment involves aligning professional competencies with global priorities by integrating sustainability education into professional programmes, promoting continuous learning, and collaborating with stakeholders. Effective capacity building relies on partnerships with trade associations, educational institutions, and global organisations to develop innovative tools, high-quality training resources, and tailored programmes that address emerging sustainability challenges.

These efforts position PAOs and accountants at the forefront of advancing sustainability on a global scale.