18 November 2020
The Prime Minister’s ten-point plan for a green recovery builds on last week’s announcement by the Chancellor Rishi Sunak of the UK’s intention to make climate disclosures mandatory for large companies and financial institutions by 2025. This is undoubtedly a positive step in the right direction. It highlights how finance can impact the world far beyond the economy and will be critical in measuring success.
If we are to build back better business and societies, we cannot afford to wait and must act now to encourage organisations to accurately start measuring and disclosing corporate climate-related risks and opportunities. As the saying goes “if you can’t measure it, you can’t manage it”.
Many businesses showed during the pandemic that they could pivot to a new normal. Let us not underestimate that they could start making positive changes now in response to the global shift to a greener economy and the Government’s desire to accelerate change.
Andrew Harding, FCMA, CGMA
Chief Executive — Management Accounting
The Chartered Institute of Management Accountants, part of the Association of International Certified Professional Accountants