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Earthdaywebinarapril 2024 V 2

The document discusses the role of finance and governance in climate transition. It provides an overview of research conducted including surveys and interviews on the urgency of transition plans among organizations. The majority of organizations do not prioritize transition planning. Larger companies have more mature plans and processes compared to smaller firms. Finance is taking a more prominent role in emissions planning and data. Regulatory drivers and reporting are also discussed.

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10 views12 pages

Earthdaywebinarapril 2024 V 2

The document discusses the role of finance and governance in climate transition. It provides an overview of research conducted including surveys and interviews on the urgency of transition plans among organizations. The majority of organizations do not prioritize transition planning. Larger companies have more mature plans and processes compared to smaller firms. Finance is taking a more prominent role in emissions planning and data. Regulatory drivers and reporting are also discussed.

Uploaded by

lincolngadzi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The role of the finance function

and governance in the climate


transition

© ACCA Public
Panellists

Ira Poensgen Alan McGill


Transition Plan Taskforce PwC

Stathis Gould Emmeline Skelton


IFAC ACCA

© ACCA Public
A sustainable world
Sustainability
An organisation’s approach to creating long-
term value by taking into consideration how a
given organisation operates in the ecological,
social, and economic environments. It is built
on the assumption that developing such
strategies ensures an organisation’s longevity.

Just transition
A process that seeks to ensure that no-one is
left behind as we move to a net zero economy,
while the benefits are maximised in a way that
is fair and inclusive. This requires
management of financial, political and social
risks, while balancing complex trade-offs
between social, economic, environmental
issues and carbon reduction goals.

© ACCA Public
Areas of
research
§ Survey with 1,000
members
§ Roundtables in eight
regions
§ Interviews

© ACCA Public
Urgency of transition plans

§ A majority of organisations do not currently prioritise transition


planning, even in the face of the climate emergency
§ Lack of prioritisation is strikingly evident among smaller
organisations
§ Larger companies in North America have plans
§ European firms in the survey are more varied in size and show
a mix of maturity around ESG processes and data
§ African firms tend to be lagging behind in terms of the quality of
their ESG data and overall compliance of ESG regulations and
policies

© ACCA Public
An opportunity

§ Emission planning is the start point for wider transition


planning
§ Majority (56%) of respondents believe that an
emissions plan is a both costs and benefits.
§ Motivations including competitive advantage,
maintaining and enhancing reputation for developing
Transitions plans
§ 41% seeing the path to transition in turn creating long-
term value for the organisation

© ACCA Public
Is there specific board
level/committee level of
governance for a plan?

Two-thirds of the respondents indicated


that a specific board or committee had
been formed, and those respondents
from larger organisations were more
likely to state this was the case

© ACCA Public
The role of finance

• The transition is a complex challenge

• Lack of clarity regarding responsibility and accountability for carbon


reduction strategies, even among organisations with transition plans in
place will reduce chance of success

• Finance has increasingly taken on a more prominent role in planning


for climate change and stepping up as custodians of ESG data

• 46% of respondents report that their organisations have created new


finance positions dedicated to ESG and related responsibilities

© ACCA Public
The regulatory and reporting drivers for
emissions and transition planning

Ira Poensgen
Transition Plan Taskforce

© ACCA Public
Fireside chat Stathis Gould
IFAC

Alan McGill
PwC

Emmeline Skelton
ACCA

© ACCA Public
Final thoughts

Ira Poensgen Alan McGill


Transition Plan Taskforce PwC

Stathis Gould Emmeline Skelton


IFAC ACCA

© ACCA Public
Case study

© ACCA Public

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