Nearly half of Asia Pacific businesses lack emissions reduction plans - Report

SHAH ALAM - A new report has revealed that nearly half of Asia Pacific (Apac) businesses have yet to develop a plan for reducing their carbon emissions.

The report, titled "The role of the CFO and Finance Function in the Climate Transition: Driving Value and Sustainability," was conducted by the Association of Chartered Certified Accountants (ACCA), the International Federation of Accountants (IFAC), and PricewaterhouseCoopers (PwC).

It surveyed 1,000 senior finance professionals around the world.

"This compares with global figures of 46 per cent of respondents who have yet to prepare an emissions plan and 70 per cent of those say they currently have no intention of developing one," it said.

The report highlighted the crucial role of chief financial officers (CFOs) and finance teams in accelerating progress towards emissions reduction goals.

"CFOs and finance teams should embrace this responsibility because, although they may not always be the 'owner' of the sustainability agenda, they can embed climate transition priorities into business planning and resource allocation, and enable high-quality sustainability reporting internally and externally," the report read.

The research also highlighted the need for finance teams to develop the necessary skills and expertise to enhance their contribution to the climate transition.

For CFOs, the report stressed the importance of balancing addressing short-term operational priorities and upskilling their teams to support the organisation's long-term net-zero initiatives.

Commenting on the report, ACCA Chief Executive Officer (CEO) Helen Brand said the accountancy and finance profession could enable organisations to achieve their net-zero ambitions fairly and inclusively.

"They can also support the transition to a low-carbon economy by helping their organisations seize the associated business benefits.

"As COP28 begins, this report is a call to action for professional accountants everywhere to play their part in helping their organisations to reduce their carbon emissions and support the climate transition," she said.

Meanwhile, PwC's finance transformation leader David Russel said the report highlights a critical gap where some businesses lack a clear roadmap to meet their emissions targets and the ability to measure and report progress against their goals.

"It's imperative for finance leaders not just to drive the change towards sustainability but also to build trust in the reporting of progress towards sustainability goals.

"CFOs can play a pivotal role in integrating environmental considerations into strategy, planning and reporting – ensuring that businesses not only contribute positively to the climate agenda but also adapt and thrive in a rapidly changing economic landscape," he said.