In the pursuit of sustainability, businesses must navigate the intersection of profit and societal well-being. Susan Rossney, Sustainability Officer at Chartered Accountants Ireland, unravels the profound impact Chartered Accountants wield in shaping a resilient future
The word ‘sustainability’ means many things to many people, but there is a definition that the world agrees on. Set out in 1987 by the United Nations Brundtland Commission, sustainability is defined as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
For businesses, this means generating a profit while not having a negative impact on society and the environment.
For me, it means the capacity to endure.
There are many ways that Chartered Accountants contribute to the world at large, and achieving the UN Sustainable Development Goals is one of the more important tasks for the future.
Sustainability vs ESG
There is some confusion between 'sustainability' and 'environment, social and governance (ESG)' that needs to be understood before any work can be done. Sustainability is a principle; ESG is a framework.
While sustainability is broad, ESG is more like a lens which allows investors to examine a business in terms of how the environment, society and governance will impact that business.
It also allows other stakeholders – like customers, for example – to examine a business’s impact on the environment and society and its governance.
UN Sustainable Development Goals
The Sustainable Development Goals started as eight goals by the United Nations for the world to achieve at the turn of the 21st century, called the Millennium Development Goals (MDGs). All UN member states committed to help achieve them by 2015.
The MDGs focused on poverty, hunger, education, gender equality, child mortality, maternal health, diseases, environmental sustainability, and global partnership for development.
In 2015, these goals were succeeded by the Sustainable Development Goals (SDGs), which are the goals that drive international sustainability policy today.
The SDGs are 17 Goals that form the framework and are the blueprint to achieve a better and more sustainable future for all by 2030.
The 17 Goals are all interconnected, meaning that one goal can’t be achieved at the expense of another.
For example, economic growth can’t be achieved at the expense of clean water and sanitation.
Who are the UN SDGs for?
The UN SGDs are for governments, businesses and even individuals.
Ireland's progress against each SGD is measured using a set of United Nation and European Union agreed targets and indicators.
Businesses track their progress against the SGDs and report on them in their annual reports and/or in their sustainability reports.
Many professional associations, including Chartered Accountants Ireland, have embedded sustainability in their strategies.
UN SDGs and Chartered Accountants
The role of Chartered Accountants is changing, and accountants are now ideally placed to help companies achieve their own sustainable goals.
Chartered Accountants act in the public interest and are committed to protecting long-term value for organisations and society. This contributes to the sustainable advancement of today’s global society.
As Sustainability Consultant and CEO, Karen Sugrue Hennessy has commented, finance stands as a pivotal enabler in the acceleration of climate action and CFOs are stepping into a critical leadership role to achieve both corporate and national climate commitments.
And they are well-placed to do so: accountants work in practices and businesses of all sizes, and in a wide variety of roles throughout the public, private and not-for-profit sectors. Many take an active role in sustainability reporting, but even more are business owners, financial service providers and entrepreneurs. All are trusted advisors, who recognise risks and opportunities and act on them.
Chartered Accountants have a crucial role to play in helping businesses become more sustainable, not only by helping them develop processes that tackle sustainability issues, but also by driving a change in mindset and culture through an organisation.
Good data collection, for example, is fundamental to achieving the UN SDGs, and accountants are central to the design of data collection protocols, and their use throughout organisations.
Chartered Accountants’ training equips them with the skills, professional scepticism and a rigor in critical decision making. As trusted advisors, they have the potential to influence and encourage businesses to make sustainability-led choices. They can advise on procurement policies and procedures that focus on sustainability as much as cost control.
Chartered sustainability
Sustainability is the guiding principle of Strategy24, the vision for Chartered Accountants Ireland as a growing, evolving, modern organisation.
Our vision is to create a sustainable business model, supporting our members and profession in creating a sustainable society in this time of global uncertainty.
Our core values are underpinned by the principle ‘For Tomorrow, For Good’.
You can find out more in our
Sustainability Centre.
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