Accountants are increasingly expected to report on aspects not part of a traditionally annual report. We unpack what ESG is and how it could affect you.
1.What is ESG reporting?
Environmental, social, and governance reporting tries to capture costs and benefits that don’t make it into traditional annual reports.
Although not standardised, these could include aspects like a company’s air emissions, the measures a firm takes to prevent bribery and corruption or money spent on community outreach.
The idea of ESG reporting is not new, but it’s picked up momentum in the last few years, particularly after the Paris Climate Accords.
2. Which companies currently do ESG reporting?
Large listed companies. Typically private companies haven’t adopted ESG yet, but this is set to change as consumer demand for ethical transparency grows.
3. Are there any ESG regulations in South Africa?
Not yet. However, at the end of 2021, the JSE published draft corporate disclosure guidelines on sustainability and climate-related risks and opportunities. At this stage, they’re voluntary.
4. Why should I care about ESG?
ESG may soon care about you. Although ESG reporting is currently voluntary and done mainly by large listed companies, experts believe it will become more widespread.
Small companies won’t have the ability to hire a full-time ESG specialist, so we may see small practices specialising in ESG popping up.
5. How can I become an accredited climate accountant?
Stay relevant by investing your company’s training budget in Climate and Sustainability training.
SAIBA and Regenesys is offering an Executive Education Programme in Climate and Sustainability Reporting 3 times during 2022, with the following starting dates:
04 Jul, to 05 Aug 2022
15 Aug, to 16 Sep 2022
10 Oct, to 11 Nov 2022
The programme consist of 5 modules offered over 5 weeks that will require +/- 3 to 5 hours per week.
The 5 modules cover the following topics:
Unit 1 – Climate change and the Economy
Unit 2 – Climate Governance
Unit 3 – Risk Management
Unit 4 – Climate Reporting & Disclosures
Unit 5 – Climate change and the Financial Considerations
Book your spot here for our next Climate and Sustainability Licence course here.
Watch the Accountants Climate and Sustainability Summit below.