Issue link: https://resources.tangoanalytics.com/i/1522476
Sustainability & Energy Management Simplified INTRODUCTION In today's rapidly evolving business landscape, sustainability is no longer a niche interest but a critical component of strategic planning. With stakeholders, regulators, and consumers increasingly calling on businesses to report on relevant sustainability metrics such as Greenhouse Gas Emissions, a significant opportunity arises for the tax and accounting profession in particular. Corporations need financial-grade, auditable sustainability data to meet these reporting requirements. CPA firms are equipped to help determine the integrity of their clients' ESG accounting data and provide guidance on reporting procedures. For accounting firms, integrating sustainability into their own operations and service offerings can also enhance their competitive edge, attract and retain talent, and meet the increasing expectations of clients and regulators. Accountants are uniquely positioned to influence sustainable practices within their firms and client organizations. They have the expertise to measure and report on ESG performance, assess risks and opportunities related to sustainability, and integrate these into financial reporting and strategy. They bring the rigor and data mindset of accounting to the nuance and complexity of sustainability. Ultimately it comes down to data, which needs to be measured, reported, and assured and all these areas fall under accountants' remit. THE ROLE OF ACCOUNTANTS REPORTING One of the most significant roles accountants play in sustainability is through the development and verification of sustainability reports. There is a growing demand for accounting services related to sustainability reporting, ESG advisory, and assurance as sustainability reporting undergoes the shift from a voluntary endeavor to a required one with financial grade quality, and assurance of that data along with it. For context, the long-awaited SEC climate disclosure rule has been finalized and the ISSB and EU standards went into effect on Jan. 1, 2024. In addition, California has passed laws requiring sustainability disclosures for public and private U.S. companies, and the IFRS Foundation's International Sustainability Standards