Accountants must hold board to account by accurately reporting non-financial info: Parekh

ICAEW President Julia Penny called for chartered accountants to play a leading role in securing a more sustainable future during a special members event, held last week in Mumbai, ahead of the opening of the World Congress of Accountants.

Deepak Parekh, Chairman of Housing Development Finance Corporation and the first ICAEW Member outside of the UK to receive the Outstanding Achievement Award also addressed delegates. 

“Today, sustainability is no longer about doing less harm but about doing better. As India transforms into the highest growth country in the world, our biggest opportunities lie in accelerating the transition to a low-carbon green economy. This is driving shareholder activism on environment, social and governance issues and it is the responsibility of accountants to hold board members to account by accurately reporting non-financial information like climate risk, emissions and anti-corruption measures, among others,” he said.

Leaders of the accountancy profession, including ICAEW partners – the Institute of Chartered Accountants of India (ICAI) and Chartered Accountants Worldwide (CAW) – joined more than 200 ICAEW members to discuss how accountants can help transform climate change risks into business opportunities. 

“The potential monetary costs of climate change represent a significant financial risk to economies and businesses globally, placing climate risk front and centre of finance’s remit. Being able to embed climate change and wider sustainability issues into business strategy and planning, risk management, procurement and performance management is now essential and chartered accountants possess the necessary skills to lead the sustainability charge,” said Julia Penny, ICAEW President.

ICAEW was the first major professional body to declare carbon neutrality in 2020. The Institute says changing the way business is done is essential for addressing the challenges of environmental degradation. More than just add up numbers, delegates heard how chartered accountants can add real value by getting to the heart of how business models function successfully against a backdrop of moving goalposts and changing climate risks and scenarios.

During the event, ICAEW encouraged members to incorporate ESG considerations when preparing financial statements and emphasised the importance of transparency and high-quality communication in reports.

The ICAEW event – its first in India since 2019 – was held on Thursday at the Taj Mahal Palace Hotel, Mumbai ahead of the opening of the 21st World Congress of Accountants. Considered the “Olympics of Accountants,” this year’s congress theme is “Building Trust Enabling Sustainability” and will explore the dual role accountants must hold as protectors of the public interest and influencers of sustainable economies for the future.