Sustainability is a growing topic of importance in the accountancy industry, with new laws and regulations progressively impacting how accountants do their jobs. This article summarises key points from the session where guest speakers, listed below, joined Gareth John to discuss sustainability in accountancy. Speakers discussed:
- How sustainability is affecting the Finance industry and why it is important
- What changes are being made and what is driving these changes
- What legal measures relating to sustainability are being introduced, and what do companies need to be aware of going forward
Speakers and panelists
- Jessica Richmond CEO & Co-Founder at Sumday
- Fran Ellington, Sustainability and Business Development Director at TBLA Ltd
You can watch the recording of the session below.
The Growing Importance of Sustainability in Finance
Speakers on the forum highlighted how sustainability is transforming the finance industry. Businesses are facing increasing pressure from stakeholders—including investors, customers, and regulatory bodies—to integrate sustainable practices into their operations. Accountants play a crucial role in this transition, ensuring that financial reporting reflects environmental, social, and governance (ESG) considerations.
Key Drivers of Change
Key drivers for change relating to sustainability:
- Regulatory Changes – Governments worldwide are implementing stricter sustainability reporting requirements.
- Investor Expectations – Companies with strong ESG credentials attract more investment and demonstrate long-term resilience.
- Consumer Demand – Customers are favouring businesses that adopt ethical and sustainable practices.
- Risk Management – Companies are mitigating financial risks associated with climate change and resource depletion.
Legal Measures and Regulatory Landscape
The emerging regulations shaping sustainability reporting include the IFRS Sustainability Standards—namely, IFRS S1 (covering all sustainability-related risks and opportunities) and IFRS S2 (focusing on climate-related risks and opportunities). These standards aim to provide a global baseline for sustainability disclosures, ensuring consistency across jurisdictions.
The UK’s adoption of IFRS sustainability standards is still evolving, with decisions on endorsement expected in spring 2025 and implementation possibly starting in 2026. Challenges remain, including uncertainty around which entities will be required to report and the scope of assurance requirements.
Implementation Challenges and Considerations
Experts highlighted key hurdles businesses face in implementing sustainability reporting:
- Ensuring fair presentation to avoid greenwashing and data being swayed by greenwashing.
- Identifying material risks and opportunities related to sustainability.
- Data quality and system controls, requiring robust data collection processes.
- Bridging the skills gap—accountants need sufficient ESG knowledge to engage effectively but don’t necessarily need to be sustainability experts.
The Role of Accountants in Sustainability Monitoring
Accountants are well-placed to support sustainability monitoring as it becomes an essential finance function. Many of the core skills that accountants possess—such as data analysis, financial reporting, risk assessment, and regulatory compliance—overlap with those required for sustainability monitoring. This creates an opportunity for accountants to expand their service offerings by providing sustainability reporting, carbon accounting, and ESG advisory services. Businesses increasingly seek expert guidance on sustainability compliance, and accountants can position themselves as valuable partners in this evolving landscape.
The Need for Carbon and Sustainability Literacy
As sustainability becomes embedded in financial decision-making, accountants must develop a fundamental understanding of carbon accounting and ESG principles. While they do not need to become sustainability experts, they should be sufficiently knowledgeable to ask the right questions, interpret sustainability data, and provide informed advice. Training and upskilling in carbon literacy and sustainability assurance will be crucial to ensuring that accountants remain competitive and capable of meeting new regulatory demands.
The Evolving Role of Accountants
With sustainability becoming integral to business strategy, accountants must adapt their skill sets to accommodate ESG reporting and advisory services. Key trends include:
- Carbon Accounting & ESG Advisory Services – Accountants can support businesses in measuring and reporting carbon emissions and other ESG metrics.
- Technology & Digital Tagging – New sustainability reporting apps and enterprise sustainability management (ESM) systems help streamline data collection and ensure compliance.
- Commercialisation of Sustainability Services – Firms are beginning to offer sustainability monitoring as an additional service for clients, particularly in carbon accounting.
Final Thoughts
The forum underscored the need for finance professionals to stay ahead of sustainability trends and regulatory developments. As sustainability reshapes the accounting profession, businesses that adapt will position themselves for long-term success.
First Intuition remains committed to supporting employers and accountants in navigating this evolving landscape, equipping them with the knowledge and skills needed to succeed in a more sustainable future.
Useful Resources and Slides
Professional Diploma in Sustainability – ACCA