Earth Day (April 22) and Finance Professionals

Yesterday, April 22 was ‘Earth Day’, an annual event to demonstrate support for environmental protection.

First held on April 22, 1970, it now includes a wide range of events coordinated globally by earthday.org including 1 billion people in more than 193 countries. EARTHDAY.ORG™ works in countries around the world to drive meaningful action for our planet across these issues: Climate Action, Science and Education, People and Communities, and Conservation and Restoration, and Plastic and Pollution. This year's theme is "Restore Our Earth" which focuses on natural processes and emerging green technologies that can restore the world's ecosystems.

For accountants and financial professionals the impact of Earth Day can be felt in the galvanising effect it is having on sustainable-finance developments in the EU, US and the UK this week alone. You can read about these in the Public Policy Bulletin here.

For Earth Day 2021,  The Prince's Accounting for Sustainability Project (A4S) has identified top ten tips for Chief Financial Officers in their vital role in achieving net zero greenhouse gas emissions:

1. Sign the A4S CFO Net Zero Statement of Support
   Join your peers and commit to playing your part in the transition towards a net zero emissions world.
   
   
2. Gain the buy in of the rest of your board and executive management team
   Demonstrate the business case for change. Finance can actively support executive management to adopt a sustainable business model that delivers sustainable outcomes.
   
   
3. Commit to a science-based target
   Set and validate a science-based target to reduce your greenhouse gas emissions in alignment with limiting global average temperature increases to 1.5°C.
   
   
4. Link incentives to your targets
   Integrate your climate targets into your organizational goals and incentive schemes to promote sustainable value creation.
   
   
5. Equip your finance team with the skills to respond
   Ensure finance professionals have the skills and competencies to support the business in delivering financial returns in the short and long term, while generating positive value for society and operating within environmental constraints.
   
   
6. Embed your net zero targets into your decision-making processes, including budgeting and capital investment
   Recognize the commercial value sustainability delivers in capital projects and decision making.
   
   
7. Incorporate sustainability into your financing strategy and investor communications
   Explore how treasury and investor relations activities can support the organization’s strategic sustainability goals, responding to growing interest from debt and equity providers on climate and other ESG risks and opportunities.
   
   
8. Publish your net zero emissions transition pathway
   Outline your trajectory towards net zero emissions, including interim targets and a clear roadmap.
   
   
9. Engage with your pension fund chair
   Work with your organization’s pension fund and other retirement plans to identify the practical steps to protect your employees' pension assets from climate risk.
   
   
10. Report annually against the TCFD recommendations
    Commit to implementation of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations by signing the A4S CFO TCFD Statement of Support and incorporate the recommendations into your annual report and investor communications.

Read more

Earth Day 2021 highlights

• a summit held by President Biden, live from leaders around the world on Earth Day

• a global youth climate summit led by Earth Uprising, in collaboration with My Future My Voice, OneMillionOfUs and hundreds of youth climate activists. 

• the "We Shall Breathe” virtual summit, a digital event examining climate and environmental justice, connecting the climate crisis to issues of pollution, poverty, police brutality, and the pandemic, all within a racial justice framework.

• Education International, a multilingual virtual summit spanning several time zones and featuring prominent activists from every continent, and representing 32 million educators, will lead the “Teach for the Planet: Global Education Summit”

• a second Earth Day Live digital event, a global show with workshops, panel discussions, and special performances will focus on Restore Our Earth™, covering natural processes, emerging green technologies, and innovative thinking that can restore the world’s ecosystems.