Businesses that delay or scale back sustainability efforts risk exposing themselves to increased financial challenges, the Association of Chartered Certified Accountants (ACCA) has said.
At ACCA’s annual Sustainability Conference, which was held on Earth Day (22 April) and attended by finance professionals from more than 100 countries, the role that sustainability plays in underpinning core business performance was top of the agenda.
As ACCA noted, sustainability is now far more than a moral issue – it is increasingly a financial one.
Risk management
“Your sustainability strategy is not something that sits on the side,’ commented Sharon Machado, head of sustainable business at ACCA. “It’s integrated within the business. It’s 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.”
Financial impact
Her sentiment was echoed by risk and finance specialist Andrea Amaize, who told the conference that the financial impacts of sustainability-related issues are becoming more immediate.
“Though the business case for sustainability remains strong today, organisations that have toned down or deprioritised their sustainability commitments are trying to balance long-term sustainability objectives against pressures for near-term results,” she said .
As the conference explored, sustainability, when properly understood and implemented, is not only a cost driver but also a profitability generator, ‘unlocking new revenue streams, reducing operating costs, improving resilience, strengthening brand value and creating competitive advantage’.
Overall, the discussion framed sustainability not as an external obligation, but as a factor that increasingly shapes financial decision-making and business viability.
The Association of Chartered Certified Accountants (ACCA) boasts members in more than 180 countries. Read more here.
