The ICAEW, the Climate Disclosure Standards Board and The Prince's Accounting for Sustainability Project, together with 12 accountancy institutes around the world, have written an open letter to the political leaders attending the Copenhagen Convention on Climate Change this week calling for a single set of universally accepted standards for climate change related disclosures.
The signatories believe that an 80% reduction in greenhouse gas ( GHG) emissions by 2050, supported by the G8 summit in July 2009, can only be achieved by aligning the actions of governments and businesses so that they are mutually reinforcing.
The representation to be presented to political leaders at Copenhagen calls on policy-makers to build on and refine existing climate change initiatives and develop a single set of universally accepted standards for climate change disclosure in mainstream financial reports. To do this, the representation says, there must be established an independent, stakeholder-led standard-setting body with appropriate accountability to public authorities which is tasked with the development of a single set of universal standards.
Michael Izza, Chief Executive of the ICAEW said, "We believe that a single reporting standard for climate change related disclosure related to financial performance and mainstream financial reports is only the beginning of the process that will promote the provision of more trusted, accurate and reliable information to investors and stakeholders. enabling them to make better decisions and drive the scale of behavioural change necessary to achieve a low carbon economy."
Richard Samans, Managing Director, World Economic Forum commented,
"Thousands of global businesses are already showing leadership and innovation in making disclosures about their climate change related risks, opportunities and strategies. The development of a single set of universal standards on climate change related disclosure will bring some welcome order to the communication challenges that inevitably occur as the discipline of climate change reporting evolves. The active involvement of the accounting profession is essential to achieving this standardization."
Adding his support Paul Druckman, Executive Board Chairman of the Prince's Accounting for Sustainability Project, said, "In the face of the "sustainability revolution", it is increasingly important for organisations to understand how climate-change issues will impact on their continuity and long-term success, and to be able to clearly communicate both the impacts and the company's response to investors and other stakeholders. The development of a universal standard for the measurement of carbon and reporting of climate change-related information is a vital step towards achieving a sustainable economy."
The representation has been signed by authors;
Institute of Chartered Accountants in England and Wales (ICAEW)
The Prince's Accounting for Sustainability Project
The Climate Disclosure Standards Board
And by
American Institute of Certified Public Accountants
Association of Chartered Certified Accountants
Canadian Institute of Chartered Accountants
Chartered Accountants Ireland
Chartered Institute of Management Accountants
Chartered Institute of Public Finance and Accountancy
CPA Australia
Hong Kong Institute of Certified Public Accountants
Institute of Chartered Accountants in Australia
Institute of Chartered Accountants of Scotland
Japanese Institute of Certified Public Accountants
South African Institute of Chartered Accountants
The Representation to the Conference on Parties on Climate Change (COP 15) is available at www.icaew.com/corporateresponsibility