1、PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS 2021 Association of Chartered Certified Accountants September 2021About ACCA ACCA(the Association of Chartered Certified Accountants)is the global professional body for professional accountants.Were a thriving global community of 233

2、,000 members and 536,000 future members based in 178 countries and regions,who work across a wide range of sectors and industries.We uphold the highest professional and ethical values.We offer everyone everywhere the opportunity to experience a rewarding career in accountancy,finance and management.

3、Our qualifications and learning opportunities develop strategic business leaders,forward-thinking professionals with the financial,business and digital expertise essential for the creation of sustainable organisations and flourishing societies.Since 1904,being a force for public good has been embedd

4、ed in our purpose.In December 2020,we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.We believe that accountancy is a cornerstone profession of society and is vital helping economies,organisations and individuals to

5、grow and prosper.It does this by creating robust trusted financial and business management,combating corruption,ensuring organisations are managed ethically,driving sustainability,and providing rewarding career opportunities.And through our cutting-edge research,we lead the profession by answering t

6、odays questions and preparing for the future.Were a not-for-profit organisation.Find out more at About this report:This report explores the future of the accountancy profession,examining the drivers of change shaping sustainable organisations as we look ahead,and the next decade of work for finance

7、professionals as well as the capabilities and the skills most prized.Building on ACCAs global research programme over the past two years it also includes a survey of over two thousand responses of finance professionals further enriched by a wide ranging and extensive engagement programme of roundtab

8、les,interviews and focus groups across the globe which explored further the drivers of change,as well as informing the core capabilities needed in the future for professional accountants in whatever role they perform.In the decade ahead,this is the professional accountant playing an integral role at

9、 the heart of sustainable organisations of the future as the sustainable business and finance professional.ACCA forewordThis is the decade of the professional accountant as the sustainable business and finance professional,with a vital role to play in driving positive change its an opportunity the p

10、rofession has to grasp.Helen Brand Chief executive,ACCAThe amount of change were seeing across global markets in the wake of the Covid-19 crisis is unprecedented,and many of the trends that were already developing prior to the onset of the pandemic are accelerating.This new research identifies five

11、dynamic areas of change over the next decade that will affect how organisations from SMEs to large corporates to public sector bodies seek to deliver long term,sustainable value.All of this is compounded by the very significant challenges presented by the growing environmental emergency.These change

12、s will indelibly impact and shape the role of the professional accountant as the sustainable business and finance professional as they help organisations navigate through these challenges.The Covid-19 crisis has also put a spotlight on systemic societal challenges across the world which demand new t

13、hinking and recast the role of business within society.Organisations of all sizes must also continue to grapple with accelerating technological and extensive workforce change.PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|FOREWORDYet these developments also present brilliant oppo

14、rtunities for the accountancy profession over the coming years.A future path ahead that reinforces and widens the role of professional accountants,and opens new doors.Sustainable business and finance professionals will be essential in helping organisations in all sectors create long term value that

15、benefits all stakeholders,playing their part in building a more prosperous future for wider society.From driving good business decision-making,as business leaders,partners and analysts,and helping to execute better strategies and activities that deliver more sustainable value,through to championing

16、the ESG agenda.From emerging practices in audit that help strengthen the integrity of business performance,through to evolving assurance practices that support organisations in grappling with the challenges of climate change.The role of the sustainable business and finance professional in all organi

17、sations of the future will be vital.And as this research shows,to capitalise on new opportunities,theyll need to be equipped with a number of core emerging capabilities must-have skills and behaviours that are essential across all roles and at any career stage in the future which underpin profession

18、al competence and effective performance.4Global engagementIn developing this research and identifying the drivers of change and core capabilities needed for the future ACCA undertook an extensive global engagement process starting in October 2020.This included roundtables,focus groups,consultations

19、with ACCA expert groups and interviews held across the world.These activities were supplemented by a global member survey and qualitative research.We would like to thank everyone for their participation in these engagements that have supported the production of this report.Roundtable,focus group and

20、 interview locations:North America(US and Canada)MESA(Middle East and South Asia)Western EuropeIrelandUKSri LankaAfricaCentral&Eastern EuropeChinaASEANIndiaSingaporeMalaysiaNigeriaPakistanTurkeyVietnamACCA Technical expert groups:Accountants for Business Global Forum and Technology Global Forum(join

21、t session)Sustainability Global ForumPublic Sector Global ForumSME Global ForumExpert group audit and taxExpert group performance managementExpert group financial and risk managementExpert group corporate and business reportingTalent and HR leaderLeaders of tomorrow roundtable5It isnt the future we

22、perhaps expected when we last wrote a report envisioning what lay ahead for the accountancy profession in 2016.Who could have predicted this?Not many did,in truth.As the Covid-19 pandemic has raged across the planet,livelihoods have been turned upside down and governments have been rocked.Its true t

23、here have been some winners but mostly we have collectively lost;estimates abound in trillions of dollars of the financial impact from this unprecedented economic crisis.Beyond the money,the true social and health fallout is incalculable.As always,the poorest have been worst hit.PrefaceBut perhaps n

24、ot all is lost.The Covid-19(SARS-CoV-2)crisis has reminded us of the role of business in society:organisations large and small will play an essential role in forging a better world for the longer term beyond the ravages of the pandemic.There is a growing appetite to address prevailing socio-economic

25、 injustices exacerbated by the crisis:growing income disparity,unequal access to employment opportunities;and inadequate provision of public services,to name a few.Yet while the lessons from the pandemic are profound and wide ranging,its impacts and consequences are simply dwarfed by the menaces of

26、an even worse humanitarian crisis on the horizon:climate change.As the G7 leaders meet in the UK in 2021,and with the UN Climate change(COP 26)scheduled for later this year,climate change is a call to arms like no other as governments,businesses,institutional investors and asset managers across the

27、world race to reduce carbon emissions.In the face of this looming environmental emergency,disruption is all around,markets are shifting,workplaces are transforming,stakeholder activism is increasing,and capital is increasingly drawn to organisations that are trusted,ethical,and environmentally frien

28、dly;organisations that seek to create long-term value for all,not just for the selected few.But what has this to do with the future of accountancy?PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|PREFACEORGANISATIONS LARGE AND SMALL WILL PLAY AN ESSENTIAL ROLE IN FORGING A BETTER W

29、ORLD FOR THE LONGER TERM BEYOND THE RAVAGES OF THE PANDEMIC.6PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|THE HUMAN TOUCH IN THE DECADE AHEADOne of the more acute observations from the Covid-19 crisis is that those organisations that had invested in digital transformation befor

30、e the onset of the global pandemic were better placed to weather the economic outfall and respond.Technology has been key to helping organisations execute their crisis management responses and grapple with an unfolding risk landscape.The crisis then further accelerated technology adoption as busines

31、ses large and small rapidly reassessed their value chains,explored new channels to market,fast-tracked and switched new services or product offerings and reconfigured their operating models.This digital change is now laying the foundations for the future as we look towards the next decade.New techno

32、logies will change work.The human touch in the decade aheadYet the true impact of this disruption is most glaringly obvious not through the lens of technology transformation,but through the narrative of workforce change.The pandemic has turned on its head many prevailing work orthodoxies and raised

33、fundamental questions about the purpose of work,how work gets done,where it gets done,and who does it.Its unleashed the art of the possible for remote working,virtual collaboration and work beyond the 95,with productivity measures soaring in some casesyet employee anxiety and mental health challenge

34、s are at an all-time high,working days are longer,job security concerns are escalating and detractors of the new normal claim innovation has been stifled.The paradox is this:in a world of work so innately technology led,the pandemic has exposed that work remains above all else a deeply human experie

35、nce.This is particularly true of the accountancy profession as we look towards the next decade.The work change we will see for accountants isnt just a transition to hybrid work,a question of redesigning office spaces or finance teams with distributed footprints.Its much more fundamental.This is abou

36、t a renewed sense of human connection and purpose,the opportunity for the profession to make a real difference that necessitates human as well as digital ingenuity.Its a story of skills transformation as jobs are re-imagined,work constructs are changed and careers are disrupted,and where technology

37、advances either complement human endeavour,or where the current limitations of digital capabilities remain exposed.THE PARADOX IS THIS:IN A WORLD OF WORK SO INNATELY TECHNOLOGY LED,THE PANDEMIC HAS EXPOSED THAT WORK REMAINS ABOVE ALL ELSE A DEEPLY HUMAN EXPERIENCE.7REPORT VALUE:Helping organisations

38、 report value externally in meaningful and transparent waysCREATE VALUE:Helping organisations execute the right business decisions to create sustainable valuePROTECT VALUE:Helping organisations establish and execute processes that protect sustainable valueThe 2020s in accountancy are a decade in whi

39、ch the accountancy profession is integral to building sustainable organisations that generate both financial returns and long-term value for society.This is the decade of the professional accountant as the sustainable business and finance professional.PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAIN

40、ABLE ORGANISATIONS|THE SUSTAINABLE BUSINESS AND FINANCE PROFESSIONALTheyll be essential to driving positive business change and supporting economies and organisations across the world to build back better.From ensuring the strong governance and sustainable financial development of organisations,thro

41、ugh to taking a leading role in critical challenges facing businesses today,such as responding effectively to the imperatives of climate change or championing the natural capital and environmental,social and governance(ESG)agenda,theyll use their skills,ethics and professional judgement,acting in th

42、e public interest to help create new value opportunities for organisations in all sectors across the world.It presents an opportunity to make real,impactful change at the heart of sustainable organisations by helping businesses take the right decisions to create long term value,as well as ensuring t

43、hat value is protected and externally reported in meaningful ways.This is the sustainable business and finance professional bringing to bear their technical mastery and digital know-how to support organisations to deliver long term sustainable societal value.The decade ahead presents brilliant emerg

44、ing opportunities for the sustainable business and finance professional at the heart of sustainable organisations.Introducing the sustainable business and finance professionalTHIS IS THE DECADE OF THE PROFESSIONAL ACCOUNTANT AS THE SUSTAINABLE BUSINESS AND FINANCE PROFESSIONAL.CAREER ZONE 1:CAREER Z

45、ONE 2:CAREER ZONE 3:CAREER ZONE 4:TRANSFORMATION DRIVERSENTERPRISE ANALYSTSASSURANCE PROVIDERSSTAKEHOLDER REPORTERS8REPORT VALUE:Helping organisations report value externally in meaningful and transparent waysCREATE VALUE:Helping organisations execute the right business decisions to create sustainab

46、le valuePROTECT VALUE:Helping organisations establish and execute processes that protect sustainable valueReport overview:PART 1:Drivers of changeTrends that are impacting the sustainable organisation of the future and the role of sustainable business and finance professionals:1.Economy2.Environment

47、5.Workforce4.Technology3.SocietyPART 2:Core capabilitiesThe must have skills needed in all future roles:SustainabilityDigitalExpertiseEthicsDriveInsightCollaborationPART 3:Future career opportunitiesThe contribution sustainable business and finance professionals will make to sustainable organisation

48、s of the future:CAREER ZONE 1:CAREER ZONE 2:CAREER ZONE 3:CAREER ZONE 4:TRANSFORMATION DRIVERSENTERPRISE ANALYSTSASSURANCE PROVIDERSSTAKEHOLDER REPORTERS9PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|1.DRIVERS OF CHANGE1.Drivers of changeKey trends that are impacting the sustain

49、able organisation of the future and the role of sustainable business and finance professionals(Figure 1).101.Global productivity on the rise but emerging markets face a challenging decade2.Government takes a bigger role3.Global supply chains are reconfigured4.China and the US decouple5.Globalisation

50、 recedes,protectionism risesFIGURE 1:Drivers of change shaping the sustainable organisation of the future and the role of sustainable business and finance professionals over the next decade 1.Economy2.Environment5.Workforce4.Technology3.SocietySUSTAINABLE ORGANISATION1.Economy2.Environment5.Workforc

51、e4.Technology3.Society21.The future of professional work is hybrid22.Innovation and collaboration drive growth23.Career paths transform24.Well-being heads the agenda25.Continuous learning is centre stage6.Climate emergency accelerates7.Business models go circular8.Natural capital management is a gro

52、wing priority9.Taxation reform accelerates10.ESG reframes the risk and reporting agenda11.Leadership trust is in the spotlight12.Inclusivity makes business sense13.Demographic shifts change talent strategies14.Education is technologically transformed15.New business models expedite16.Datasphere expan

53、ds17.Cloud transforms scalability18.Smart technology accelerates19.Cybersecurity is big business20.Collaborative technology changes connectivity*Click on the tabs or arrows,to navigate to each relevent chapterDRIVERS OF CHANGE11PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|2.COR

54、E CAPABILITIES OF THE FUTUREWe see a number of emerging core capabilities that will be needed by the sustainable business and finance professional of the future.These core capabilities are a direct response to changing organisational needs in the face of the drivers of change we have identified,as o

55、rganisations seek to create sustainable long-term value.2.Core capabilities of the futureThey reflect the skills,knowledge and behaviours required for an ACCA-qualified accountant to meet the future needs and demands of the profession.Individuals will need to balance these core capabilities to fit t

56、heir role and stage of career.The core capabilities are at the heart of ACCAs new Career Navigator(Figure 2),which supports ACCA members in navigating their own career route,enabling them to explore potential career destinations,acquire new skills and connect with the latest jobs and talent.THESE CO

57、RE CAPABILITIES ARE A DIRECT RESPONSE TO CHANGING ORGANISATIONAL NEEDS IN THE FACE OF THE DRIVERS OF CHANGE WE HAVE IDENTIFIED,AS ORGANISATIONS SEEK TO CREATE SUSTAINABLE LONG-TERM VALUE.12FIGURE 2:The career navigator and core capabilities*SustainabilityEthicsInsightExpertiseDigitalDriveCollaborati

58、onExpertiseKey competencies identified:nCorporate and business reporting nTaxation nRisk management nAdvisory and consultancy nAudit and assurance nPerformance management nFinancial managementCollaborationKey competencies identified:nEngagement nCommunication nInclusion nInfluence nStakeholder focus

59、InsightKey competencies identified:nCritical thinking nPlanning and project management nInnovation nBusiness acumen nGovernance and controlDriveKey competencies identified:nLifelong learning nDetermination nChange orientation nAuthenticity nLeadership*Click on a square,to navigate to each relevent p

60、age or chapter13PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|3.FUTURE CAREER OPPORTUNITIESOur latest research identifies four new emerging career zones of opportunity for the sustainable business and finance professional where they can make vital contributions to ensure organis

61、ations are sustainable for the future through the type of jobs they perform.3.Future career opportunitiesThe zones represent brilliant areas of accountancy jobs in all sectors and industries across the globe,in which finance professionals will help create new organisational value,protect existing or

62、ganisational value or communicate that value to the outside world through their reporting activities.These new jobs go way beyond signing off a set of financial accounts or producing a variance report.Theyre much more multidisciplinary and call into play the broader skills,capabilities and knowledge

63、 that complement finance and accountancy skills.These future roles are much more data and technology driven,providing finance professionals with purposeful jobs and great career options for the future(Figure 3).REPORT VALUE:Helping organisations report value externally in meaningful and transparent

64、waysCREATE VALUE:Helping organisations execute the right business decisions to create sustainable valuePROTECT VALUE:Helping organisations establish and execute processes that protect sustainable valueCAREER ZONE 1:CAREER ZONE 2:CAREER ZONE 3:CAREER ZONE 4:TRANSFORMATION DRIVERSENTERPRISE ANALYSTSAS

65、SURANCE PROVIDERSSTAKEHOLDER REPORTERS14PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|3.FUTURE CAREER OPPORTUNITIESThe transformation driver thinks ahead.The roles they perform are essential to delivering organisational change to create and protect long term sustainable value.Ca

66、reer zone 1:The transformation driverThis is the sustainable business and finance professional bringing new vision and transformational capabilities to the organisation as calls grow to build back better and businesses change to meet growing ESG commitments.They could be exploring new consulting or

67、advisory roles in the face of rapid technological innovation and business change.They may be more specifically working as business advisers leading brilliantly innovative smaller and medium-sized accountancy practices(SMPs)that are transforming their client organisations.They could be entrepreneurs

68、using their finance and accountancy skills to establish start-up businesses at the heart of sustainable local economies,or they could be driving major business change initiatives in global business service operations.They may be digital leaders seeking to introduce new technologies or drive enhanced

69、 data capabilities to transform businesses,or they may have already reached a chief financial officer(CFO)role/C Suite role,driving organisational change as part of the leadership team across the organisation.They may even be in education roles,helping transform the talent pipeline for the future.Wh

70、atever role they perform,their skills and capabilities are essential to driving transformational change in organisations as a catalyst for creating long term sustainable value.Theyre always thinking ahead to improve the organisation understanding of the future.They could be finance business partners

71、,the commercial advisers to organisations who partner across businesses using strong data skills to analyse investment cases,run the numbers on new channels to market or helping deliver new products or services to meet changing customer demands.They may be performance managers or financial analysts

72、transforming performance management and planning processes at the heart of the sustainable business of the future,helping organisations make commercial and financial decisions that increasingly have environmental or social implications,or driving more accountability in public sector decision making.

73、They could be project or programme accountants,brought in to support agile project teams by analysing the financial implications of major business programmes as organisations seek to innovate in the face of rapid disruption.They could be treasury professionals,using data skills and advancing technol

74、ogies to help secure the organisations funding and helping manage increasing financial risks as the business world is further disrupted.The enterprise analyst brings data to life.This is the sustainable business and finance professional helping organisations create and protect value in various roles

75、 using their brilliant data and future insight skills.Career zone 2:The enterprise analyst15PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|3.FUTURE CAREER OPPORTUNITIESThe assurance provider is the sustainable business and finance professional bringing new levels of governance to

76、 organisations by helping protect and report on value in the different roles they perform.Career zone 3:The assurance providerAssurers roles are essential for providing confidence to capital markets as well as giving assurance to investors and wider stakeholder groups.Their roles are critical for de

77、monstrating to the outside world that the organisation is well controlled,ethically led,and attractive for investment and securing capital.Roles in this career zone may focus on enterprise risk management,helping businesses think ahead and understand the growing risks that are emerging and threateni

78、ng longer-term business performance.The assurance provider could be at the forefront of shaping forward-looking audit practices to meet the assurance needs of the organisations stakeholders as auditing practices transform through technology.They could also be moving into the exciting and fast-growin

79、g area of ESG assurance to bring greater confidence in,and transparency to,organisations management of ESG risks or the way they capitalise on ESG opportunities.Or the assurance provider may be playing a critical role in public sector audit teams to help bring more accountability and trust to govern

80、ments and public sector organisations in the wake of stretched finances from the Covid-19 crisis.The stakeholder reporter may be working in corporate reporting or public sector reporting,leading change in the way organisations report their value creation story within the financial statements and bey

81、ond.Here they could be playing an increasingly important role in supporting wider reporting initiatives such as carbon or ESG reporting,responding to growing stakeholder demands for more transparency on organisational impacts and outcomes.Or they could be employed in financial controllership roles,w

82、orking at the heart of sustainable organisations to ensure strong governance and stewardship over organisational finances.They may be involved in more specialist roles such as leading tax compliance and reporting initiatives as tax regulation continues to evolve.Or they could be leading investor rel

83、ations activities,helping businesses respond to the changing investor landscape with an increasing focus particularly on ESG issues as investors become more aware and engaged,wishing to invest capital in organisations that have purpose and that are environmentally and socially aware,and that seek to

84、 produce sustainable returns with positive societal impacts.The stakeholder reporter is the sustainable business and finance professional at the heart of the organisation,reporting performance externally in more meaningful ways in the face of growing stakeholder demands.Career zone 4:The stakeholder

85、 reporter16FIGURE 3:20 future key roles identified at the heart of sustainable organisations*KEY ROLES FOCUSED ON CREATING AND/OR PROTECTING VALUEKEY ROLES FOCUSED ON PROTECTING AND/OR REPORTING VALUEFinance business partnersProject/Programme accountantsPerformance managers/analystsTreasury professi

86、onalsCorporate finance expertsAdvisersGBS professionalsEducatorsTechnology and data leadersEntrepreneursCFO/C-SuiteCorporate reportersTax expertsControllersInvestor relationsPublic sector reportersExternal auditorsPublic sector auditorsESG assurersIA/Risk professionals617181920

87、REPORT VALUE:Helping organisations report value externally in meaningful and transparent waysCREATE VALUE:Helping organisations execute the right business decisions to create sustainable valuePROTECT VALUE:Helping organisations establish and execute processes that protect sustainable valueTRANSFORMA

88、TION DRIVERSCAREER ZONE 1:ENTERPRISE ANALYSTSCAREER ZONE 2:ASSURANCE PROVIDERSCAREER ZONE 3:STAKEHOLDER REPORTERSCAREER ZONE 4:*Click on the boxes,to navigate to each relevent page or chapter17PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGEDrawing on ACCAs collec

89、tive research over the last two years and a new ACCA member survey,as well as interviews,global roundtables and third-party research,what do we see as the key drivers of change potentially affecting sustainable organisations of the future and the role of sustainable business and finance professional

90、s?Drivers of change1.Economy2.Environment5.Workforce4.Technology3.Society*Click on the tabs,to navigate to each relevent chapter18PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:1.ECONOMYSustainable organisations need to survive and thrive in the face of economie

91、s that are constantly evolving and undergoing structural change.But it is shocks,including recessions,technological shifts and energy transitions,that tend to bring about the greatest changes.The Great Depression of the 1930s changed attitudes about the role of government,paving the way for a perman

92、ent expansion of the state.The switch from steam power to electricity triggered a vast reorganisation of manufacturing.The Covid-19 pandemic and its associated recession have created the biggest challenges to the global economy since the Great Depression yet even before the onset of the crisis the g

93、lobal economy faced a number of systemic challenges from rising income inequality,increasing unemployment,and technological upheaval,together with escalating USChina trade tensions and growing concerns over protectionism and regionalisation threatening global supply chains.In the immediate wake of t

94、he pandemic,the International Monetary Fund(IMF)is predicting the strongest(if uneven)post-recession recovery in 80 years(World Bank 2021a)but concerns prevail on the disparity between developed and emerging economies.The short-term outlook is precariously dependent on the efficacy of the vaccine ro

95、ll out and challenged by the debt burden many economies now face from their response to the crisis.In the longer term,much depends on the capacity of policymakers to generate sustainable growth and respond to the climate emergency by creating new low-carbon jobs.Building critical green infrastructur

96、e and lowering the cost of international trade will be key priorities.All these issues will be key to determining how the world economy will look by 2030 and beyond.Sustainable organisations will need to react to,and manage,these economic challenges,which will as a consequence impact in different wa

97、ys the roles of professional accountants.1.Economy1.Economy2.Environment5.Workforce4.Technology3.Society19Trend 1:Global productivity on the rise but emerging markets face a challenging decadeThe pandemic will cast a long shadow over the global economy but a likely positive effect over the coming ye

98、ars is a major boost to business investment,productivity,and real wages(Economist 2021).During the recession of 2020,business investment overall fell in line with wider GDP falls.But within this,spending on technology was transformational,with the pandemic forcing rapid surges in digital investment.

99、Companies spent the equivalent of approximately US$15bn extra a week on technology,making this one of the biggest spends on technology investment in history(Business Wire 2021).The sudden onset of the Covid-19 crisis and subsequent lockdowns forced rapid changes in business operations;technology was

100、 adopted,particularly,to facilitate safe remote working.Global business investment could be 10%to 20%above pre-pandemic levels by the end of 2022 and real wages growth is therefore expected to improve,given wages high positive correlation with productivity.The impact of the Covid-19 crisis on nation

101、al economies has been uneven,however,with some countries making a faster return to longer-term economic projections.Its a particularly challenging situation for many emerging market(EM)economies,with a lack of progress in market reforms,existing challenges in infrastructure gaps,poor governance stru

102、ctures and health care challenges as well as inadequate social safety nets exposed by the crisis.For the first time since the 1990s,the global middle class shrank and the number of global poor is estimated to have been 131 million higher because of the economic outfall as people slipped further down

103、 the socio-economic ladder(Kochhar 2021).The next 10 years will probably see incomes per head in many EMs falling,relative to those in advanced economies a reversal of the trend in recent decades with increased numbers(possibly 150 million more people)living in extreme poverty in these regions by 20

104、21(World Bank 2020).As the growth outlook for the US economy improves,tighter monetary policy interventions may be made to control the speed of US growth and inflationary pressures,but these could have significant knock-on impacts on EMs with substantial debt.Excerpt from the Global Economic Prospec

105、ts publicationWorld Bank,June 2021The world economy is experiencing an exceptionally strong but highly uneven recovery.Global growth is set to reach 5.6 percent in 2021its strongest post-recession pace in 80 yearsin part underpinned by steady but highly unequal vaccine access.Growth is concentrated

106、in a few major economies,with most emerging market and developing economies(EMDEs)lagging behind:while about 90 percent of advanced economies are expected to regain their pre-pandemic per capita income levels by 2022,only about one-third of EMDEs are expected to do so.In low-income countries,the eff

107、ects of the pandemic are reversing earlier gains in poverty reduction and compounding food insecurity and other long-standing challenges.The global outlook remains highly uncertain,with major risks around the path of the pandemic and the possibility of financial stress amid large debt loads.Controll

108、ing the pandemic at the global level will require more equitable vaccine distribution,especially for low-income countries.In addition to the necessary efforts to pursue widespread vaccination,policy makers face a difficult balancing act as they seek to nurture the recovery through efficiently alloca

109、ted fiscal support while safeguarding price stability and fiscal sustainability.Policy makers can also help entrench a lasting recovery by undertaking growth enhancing reforms and steering their economies onto a green,resilient,and inclusive development path.Prominently among the necessary policies

110、are efforts to lower trade costs so that trade can once again become a robust engine of growth.(World Bank 2021a)PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:1.ECONOMY1.Economy2.Environment5.Workforce4.Technology3.SocietyCOMPANIES SPENT THE EQUIVALENT OF APPRO

111、XIMATELY US$15BN EXTRA A WEEK ON TECHNOLOGY,MAKING THIS ONE OF THE BIGGEST SPENDS ON TECHNOLOGY INVESTMENT IN HISTORY(BUSINESS WIRE 2021).20PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:1.ECONOMYTrend 2:Government takes a bigger roleGovernments are looking at l

112、ong-term pathways out of the crisis.The Covid crisis resulted in one of the most dramatic increases in government spending across the global economy in history,particularly in G7 countries as an innovative range of fiscal policies were adopted that are likely to be used by governments in future down

113、turns(Figure 4).They included generous wage subsidies,furlough schemes and direct transfers to households.There are growing challenges facing economies,from ageing populations in Western economies to increased pressures on governments to spend on health and social care,as well as infrastructure spen

114、ding,partly in response to efforts to achieve net zero by 2050.But there are even bigger longer-term questions relating to the broader role of government,its future role in providing public services as well as its responsibilities for creating fair and just societies in the future.Key priorities inc

115、lude transforming peoples skills to fit them for the global digital economy,making technology investments,developing green infrastructure,legislating for evolving social work contracts,rebuilding communities,addressing inequality and inclusivity challenges,pursuing more private sector collaborative

116、participation and supporting start-ups.Broadly,we can expect to see governments take a bigger role in the state as we look forward over the next decade.We have seen the government play a much larger role during the pandemic,particularly with grants,incentives,and tax changes.ASEAN CFO roundtableAnot

117、her very important point in terms of drivers of change is the changing role of government.Today there is a lot of pressure on government to evolve and more pressure to be accountable.The public sector is under pressure to partner with the private sector.Public sector roundtableThe future will requir

118、e dialogue and engagement,where the government understand the priorities of business,so business and government can work together to drive value.Talent leaders roundtableTheres a change in landscape for us with the funding available,and in a central government funding.I know our funding across the p

119、ublic services will be squeezed and we(as accountants)have to be more commercially and business minded.Public sector roundtableI think theres an increasing demand now for business to have non-financial performance indicators as a way of understanding their business.And I think that if the finance fu

120、nction within the public sector doesnt get involved,somebody else will.Because thats what business is demanding.Public sector roundtableWe have started the process of moving to accrual accounting.But that is a big challenge for us in Malaysia in terms of the skills required.Interviewee quoteFIGURE 4

121、:Comparing the size of selected economies 20092020 fiscal stimulus packages,as share of economy(GDP)Source:WEF 2020a 1.Economy2.Environment5.Workforce4.Technology3.Society21PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:1.ECONOMYSPOTLIGHT ON:Sustainable public f

122、inances through Covid-19After the crisis,governments are likely to want to stabilise their spending first and then begin to rebuild their balance sheets.In the current environment,some combination of public spending cuts and tax increases will be required over time in many countries but governments

123、can minimise their reliance on these two measures by taking a balance-sheet approach to fostering sustainable public finances.This can be achieved through maximising the return on public assets,focusing on value for money in the use of public resources,and taking a multi-capital approach by expandin

124、g the scope of the public sector balance sheet.The central recommendation of this report is that governments must take a balance-sheet approach to managing their finances through this crisis.Balance sheet information can improve decision making,should act as the benchmark for new fiscal targets,and

125、will support governments in using sufficient fiscal firepower to rebuild the economy for a more inclusive and greener future.The balance-sheet approach is founded on accrual accounting but even governments operating on a cash basis can apply the mindset of balance-sheet management to their decision

126、making.All public sector organisations maintain some form of accounting data and can consider this information when deciding whether a change represents value for money and what its implications are for net worth even where reliable accrual information does not exist.To be credible,public sector bal

127、ance sheets must be properly prepared,audited and disclosed.Public finance professionals clearly have an important role to play in preparing the balance sheets.They can also contribute to transparency and accountability by providing clear,understandable narratives to help non-experts make decisions

128、at a time when many countries will need to navigate a series of difficult policy choices.(Metcalfe and Taylor 2020)Trend 3:Global supply chains are reconfiguredIts estimated that as much as a quarter of the worlds goods could shift production location by 2025(Sneader and Singhal 2021),partly because

129、 of risk mitigation as organisations look to balance profitability and cost savings with operational agility.Businesses are shifting more to just in case supply chains,diversifying production centres and supply chain partners not only to build greater resilience across the supply value chain but als

130、o because manufacturing cost differences between developed and emerging markets continue to fall.The importance of collaboration with trusted partners across the supply chain in the future will also rise as companies increasingly form partnerships to drive efficiencies.They may seek to innovate in t

131、he face of changing societal or regulatory demand,for example in relation to environmental developments and green supply chain transparency.Technology too is another key factor explaining why we will continue to see supply chain transition even long before the onset of the global pandemic,new techno

132、logy platforms were having a big impact on global supply chains from delivery route optimisation analytics to forecasting customer demand,from the automation of production line processes using clever robots to driverless vehicles.Growing data insight and management capabilities are transforming the

133、capacity of organisations to optimise their supply chains,drive process efficiencies and increasing quality control processes and enhancing supply chain traceability.Our clients whove had international supply chain relationships,theyre now looking to develop alternate supply chain relationships,whic

134、h are closer to home,albeit more expensive,or not as efficient,but theyre looking to diversify from a risk management perspective.MESA roundtableThe whole role of the supply chain.its a governance issue,but particularly in terms of environmental and sourcing impacts,human trafficking,modern slavery

135、issues.the cost of that to society is hugeand the impact from a reputational point of view to a company is huge.Sustainability global forum roundtable1.Economy2.Environment5.Workforce4.Technology3.Society22PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:1.ECONOMY

136、Trend 4:China and the US decoupleAccording to the Centre for Economics and Business Research,China will overtake the USA to become the worlds biggest economy in 2028.Both economies recovered strongly and quickly from Covid-19-induced recessions and the crisis has done little to change trend rates of

137、 growth of around 3%in the US and 5%to 6%in China.There are policy intentions for further economic reform and opening up of Chinas economy,for example the Regional Comprehensive Economic Partnership agreement made at the end of 2020.Yet the transition from middle income to high income(ie a developed

138、 economy)may be particularly challenging for China,given its population demographics and decreasing working age population,as well as broader geo-political issues.Trade tensions between the US and China wont help,with extensive tariffs continuing to remain in place.This has been extended to US restr

139、ictions on Chinese access to certain advanced technologies,often under the guise of security.Consequently,a process of some de-coupling between the US and China is in prospect over the next decade.By the early 2030s it should be apparent whether the China model of economic development will be a succ

140、ess,but a further deterioration in the relationship will damage the resilience of the global economy.The Conference Board economic forecast for the US economy(July 14,2021)The Conference Board forecasts that US Real GDP growth will rise to 9%(annualised rate)in Q2 2021 and 6.6%(year-on-year)in 2021.

141、Following solid economic growth in Q1 2021,we expect the recovery to continue through the remainder the year.Looking further ahead,we forecast economic growth of 3.8%(year-on-year)in 2022 and 2.5%(year-on-year)in 2023.The global economy:on track for strong but uneven growth as Covid-19 still weighsG

142、rowth among emerging market and developing economies is expected to accelerate to 6%this year,helped by increased external demand and higher commodity prices.However,the recovery of many countries is constrained by resurgences of Covid-19,uneven vaccination distribution,and a partial withdrawal of g

143、overnment economic support measures.Excluding China,growth is anticipated to unfold at a more modest 4.4%pace.In the longer term,the outlook for emerging market and developing economies will likely be dampened by the lasting legacies of the pandemic erosion of skills from lost work and schooling;a s

144、harp drop in investment;higher debt burdens;and greater financial vulnerabilities.Growth among this group of economies is forecast to moderate to 4.7%in 2022 as governments gradually withdraw policy support.Source:World Bank 2021b1.Economy2.Environment5.Workforce4.Technology3.SocietyI think going fo

145、rward in the next five to 10 years,geopolitical tension is likely to increase.We have been seeing challenges with the(US-China)relationship.I think there may be a lot of geopolitical tensions which will transform global business and increase risk.Expert group financial and risk management roundtable

146、I would say that its more of the geopolitical issues-its quite relevant in our work here,the conflict between different countries and the issues that we have to take into consideration when our clients are operating.A lot of CFOs are facing a lot of issues about even say,setting up a business or pla

147、nts in particular jurisdictions.Expert group performance management roundtable23Trend 5:Globalisation recedes,protectionism risesProtectionism had been increasing in global trade even before the Trump administration began imposing tariffs on Chinese imports in 2018.But USChina trade tensions since t

148、hen have increased fears that the long post-war era of greater globalisation is over and may soon be in full retreat.The onset of the Covid-19 pandemic introduced a temporary surge in protectionism as countries particularly restricted the export of personal protective equipment(PPE)and other medical

149、 supplies deemed necessary for dealing with the health crisis.Although temporary,such measures highlighted a protectionist attitude in many countries.A more permanent trade effect of the pandemic may be the shortening of supply chains as emphasis is switched towards resilience rather than lowest cos

150、t,a reversal of the development and extension of global supply chains that was a factor of increased globalisation in the 1990s and 2000s.Trade flows may become even more regionalised than they are already,with blocs centred on the US,EU and Asia.Geopolitical issues between the US and China may give

151、 this trend an extra boost.An increasing emphasis on domestic resilience in certain sectors suggest that globalisation measured as the share of world exports in global GDP could well be on a declining trend in coming years.In the next 10 years,the focus will switch from America and Europeto Chinaand

152、 Sub Saharan Africa.And that is really going to change the dynamic of how we look at the world in Ireland.I think its going to have a big impact.Ireland roundtable So youre seeing a lot of companies having to totally relook at the way they actually go to market and who theyre selling to.And thats al

153、so related to a more general economic points about new trade deals and opening up particularly regionalised trade deals.Talent leaders roundtableIn Sri Lanka there are still restrictions on some exports,and restriction on foreign exchange.No matter what technology you have access to,it puts pressure

154、 on how companies can survive,how they structure and how they grow.Sri Lanka roundtableKEY DATA POINTSTo what extent do you believe global economy challenges post Covid-19 will impact the role of sustainable business and finance professionals?Responses to ACCA member survey,impacts over the next fiv

155、e to ten years(Scale of 110 where 1=no impact,10=very significant impact)To what extent do you believe an increase in economic protectionism by countries will impact the role of sustainable business and finance professionals?Responses to ACCA member survey,impacts over the next five to ten years(Sca

156、le of 110 where 1=no impact,10=very significant impact)PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:1.ECONOMY1.Economy2.Environment5.Workforce4.Technology3.SocietyGlobal economic challenge post COVID-19 8.1An increase in economic protectionism by countries7.12

157、24How drivers of change in the global economy affect the sustainable business and finance professional of the future(some examples)nProductivity:Finance professionals will play a key role in supporting sustainable organisations to weather potential economic challenges and drive productivity through

158、many of the roles that they perform to help sustainable organisations create value or protect value.Improving organisational productivity is particularly relevant to roles such as those in finance business partnering or analysis.(Further reading:ACCA 2021a)nGovernment finances:Public sector accounta

159、nts will play a big role in supporting governments and public sector organisations to rebalance their finances and ensure careful public sector financial management in the long legacy from the Covid-19 crisis.Recent ACCA research has identified a critical role for public sector finance professionals

160、 in building back public finances for a greener and more inclusive future.(Further reading:Metcalfe and Taylor 2020)nGlobal trade:trade is a fundamental pillar on which sustainable organisations of the future will create long-term value.Finance professionals can support their organisations by encour

161、aging the development of international trade,and clients can tap into advisory advice across different themes relating to trading across borders.Previous research by ACCA has identified a number of key areas in which finance professionals can support global trade ambitions,from assisting with unders

162、tanding foreign regulation and customs duties through to foreign exchange,domestic regulation implications and access to finance.(Further reading:ACCA 2018a)nSupply chains:new areas of opportunities will prevail in supporting organisations to restructure their operations and providing more efficient

163、 and environmentally friendly supply chains.For finance and treasury teams,issues of working capital and liquidity across supply PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:1.ECONOMYchains will remain important,but there are broader contributions for finance

164、professionals to make in areas such as understanding how to re-engineer supply chains to drive organisation value,or how new forms of partnerships can drive new business value streams.In the public sector,future finance professionals have emerging opportunities to make sustainable long-term differen

165、ces in areas such as public procurement.(Further reading:ACCA 2020b)The government has made an initial to transition from cash based to accrual-based accounting,and with this implementation,we are realising that theres an emerging skills gap between your traditional accountant to start being able to

166、 support government in public finance.We need to be able to account more accurately to support the financing challenges particularly in Africa economies.Africa roundtableFurther related reading from ACCA:1.Economy2.Environment5.Workforce4.Technology3.SocietyFinance functions:seizing the opportunityA

167、CCAs report explores the future journey of the finance function post-Covid.Growing globally:how SMPs can unlock international ambitionsAn analysis of the ways in which small and medium sized accountancy practices can support their clients to expand internationally and facilitate global trade.New mod

168、els of public procurement:a tool for sustainable recoveryThe role of public procurement and finance professionals in helping the public sector respond in the aftermath of the Covid-19 crisis.25PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:2.ENVIRONMENTGlobal in

169、itiatives in response to the environmental crisis are transforming the economic,social,financial,technological,governance and political landscape.The ramifications from global warming extend to a multitude of ecosystem challenges from flooding,water shortages,intense storm damage and wildfires,throu

170、gh to humanitarian conflicts and displacement of populations.Pollution from fossil fuels in 2018 is estimated to have cost the global economy US$2.9 trillion,equating to 3.3%of world GDP,from ill health and reduced ability to work(Myllyvirta 2020).By 2075 the negative impacts from CO2 emissions are

171、estimated at$30trillion at current rates(Howard et al 2021).Beyond the specific threat of global warming,the United Nations Sustainable Development Goals(SDGs)and targets to 2030 are a universal roadmap for governments,business,investors and civil society to follow to transform their economies and b

172、uild prosperous societies,providing a framework for understanding risk and the external environment in a way that is suited to the new nature of the global economy and the future of global growth.For organisations,the 10 principles of the United Nations Global Compact accord provide the roadmap for

173、businesses wishing to advance the SDG agenda as they face increasing pressure from activist investors and ratings agencies to demonstrate their green credentials and positive impact on society.To report more transparently and more consistently to governments and wider stakeholders and to the impacts

174、,externalities and risks they are creating.Corporate reporting frameworks are broadening out in response to changing societal needs,as legislative requirements shift and reporting advice evolves while organisations grapple with understanding whom they are truly accountable to and how long-term value

175、 to society is created,measured and reported.2.Environment2.Environment1.Economy5.Workforce4.Technology3.Society26PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:2.ENVIRONMENTTrend 6:Climate emergency acceleratesThe internationally binding legal treaty on climate

176、 change in 2015 targeted a global warming limit of 1.5 degrees higher than pre-industrial levels.As COP 26 approaches,leading economies are challenged by the aim of shifting to a net zero emissions economy by 2050,yet world leaders are pledging more aggressive targets(World Meteorological Organizati

177、on 2021).In June 2021,the European Union(EU)set a greenhouse gas emission target of a reduction of 55%by 2030 and made total elimination by 2050 legally binding(European Commission 2020).Businesses are now setting their own goals,aiming to decarbonise ahead of the legal targets and to become net zer

178、o businesses,transforming their business models and managing their response to climate change as a systemic risk with potentially enormous financial consequences(Rughani 2021).Theres also growing scrutiny from the investor community,reflected in this years letter to CEOs from Larry Fink,chairman of

179、BlackRock,suggesting that companies need to disclose a plan for how their business model will be compatible with a net zero economy(Fink 2021).In June 2021,G7 leaders met and agreed that nations will mandate climate reporting in line with the recommendations of the Task Force on Climate-related Fina

180、ncial Disclosures(TCFD)although timescales are still to be confirmed.This reflects broader moves to mandate sustainability reporting across jurisdictions(Figure 5).Along with the most recent report from the Intergovernmental panel on climate change(IPCC)in summer 2021,it sets the tone for the decade

181、 ahead.Carbis Bay G7 Summit Communique The Leaders of the Group of Seven pledged to Protect our planet by supporting a green revolution that creates jobs,cuts emissions and seeks to limit the rise in global temperatures to 1.5 degrees.We commit to net zero no later than 2050,halving our collective e

182、missions over the two decades to 2030,increasing and improving climate finance to 2025;and to conserve or protect at least 30 percent of our land and oceans by 2030.We acknowledge our duty to safeguard the planet for future generations.White House,June 13 2021Were building skills around environmenta

183、l considerations in valuations,how to avoid greenwashing by companies,climate uncertainties,to build them into estimates,water consumption metrics,nature loss indicators.Expert group audit and tax roundtable2.Environment1.Economy5.Workforce4.Technology3.SocietyFIGURE 5:Geographical spread of mandato

184、ry sustainability reporting requirementsSource:A4S 202127PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:2.ENVIRONMENTTrend 7:Business models go circularTheres a growing necessity for businesses to operate in a much more environmentally friendly manner by leverag

185、ing technology and reducing carbon footprints.Circular business models are attracting more interest as stakeholders demand more environmentally friendly approaches to business production and service delivery across the value chain.They have three fundamental principles,namely 1)waste and pollution s

186、hould be designed out of the business model;2)materials used should be kept in use;and 3)the natural ecosystem should be regenerated.Here,theres an increasing switch from traditional non-environmentally friendly use of natural resources extracted in their raw form to renewable or recoverable materia

187、l that reduces extraction requirements or uses recyclable waste in the production of new materials.Businesses are also focusing more on product life extensions,by developing products with significant durability,extending the use of products by customers and thereby in effect slowing the rate of extr

188、action of new raw materials to produce repeat products.Organisations are also looking to retain final ownership of products rather than selling to customers,thereby retaining control of these products at the end of their useful life and managing them much more effectively from an environmental persp

189、ective.This is symptomatic of a broader push from organisations to be eco-credible across the value chain.You know,its a great selling point if you can persuade a young person who cares about the environment that you can contribute to that in an accountancy career.Its almost about a selling piece on

190、 our part to bring that passion in and build it into the qualification and therefore into a specialism going forward.UK roundtableHaving businesses with purpose that serve collaborative communities,its growing businesses that are in line with the UN sustainable development goals,its about building o

191、rganisations that have a much better and bigger impact on the earth in terms of sustainability.Interviewee quote Essentially we are pushing for sustainable finance.We are pushing for more carbon free energy resources.The costs of these things have to measured and this is where finance can contribute

192、.Interviewee quoteTrend 8:Natural capital management is a growing priorityNatural capital management and biodiversity are growing priorities for businesses,as organisations look to adopt tools such as the natural capital protocol decision framework to improve identification,assessment and valuation

193、of their direct and indirect impacts on natural resources.Here,business leadership will be essential to managing the potential reputational,organisational,regulatory and supply chain risks that prevail if organisations misuse natural resources.Effective natural capital management strategies are esse

194、ntial to securing investment,as asset management organisations and institutional investors incorporate environmental considerations into their risk valuations.Customers and clients of organisations are asking similar questions about the environmental impacts of the take-make-waste model.More broadly

195、 for governments,in March 2021,the 52nd United Nations Statistical Commission adopted a new framework the System of Environmental-Economic Accounting Ecosystem Accounting(SEEA EA)to ensure that natural capital,such as forests,wetlands and other natural ecosystems,is recognised in economic GDP report

196、ing,with the intention that this will underpin decision making at both COP 15 and COP 26 later this 2.Environment1.Economy5.Workforce4.Technology3.Societyyear(UN Statistical Commission 2021.Its estimated that approximately 50%of current global GDP depends on natural capital extraction(Russo 2020).Ho

197、w do you remain profitable not at the expense of people and planet.This is a key challenge.I am a true believer of the triple bottom line.Interviewee quoteYou need team-work with sustainability issues.No one person or department can know everything.Interviewee quoteFor my business ESG is becoming mo

198、re and more prominent.Our clients are asking more about our own policies.And when we look out at the market,we are seeing that theres more sensitivity from investors as to where they invest their money and the type of companies they invest their money in,and so on.And I see a very important role for

199、 accountants in that whole new dynamic,because in terms of measuring companys compliance with ESG.I see accountants being able to almost build a new line of accounting new,sorry,a new type of Accountancy,which is not so much focused on just analysing the balance sheet,but basically looking way beyon

200、d the balance sheet.Expert group corporate and business reportingTrend 9:Taxation reform acceleratesThe possible rebalancing and reform of the tax system as governments seek to respond to the pressures of globalisation,workforce transition and broader societal challenges will potentially have a majo

201、r impact on sustainable organisations over the next decade.There are challenges ahead for many national institutions in securing taxation revenues in the face of shifting workforce and employment practices and changing demographics.This will be exacerbated as populations age and become more 28PROFES

202、SIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:2.ENVIRONMENTdependent on government resources,rather than working and paying taxes.Therell also be significant shifts in how governments leverage technologies to improve the administration of taxation policies,with a maj

203、or push for automation and digital developments using technologies such as AI and machine learning.These developments are presenting tax collection authorities with new opportunities to query masses of data and identify potential areas of tax non-compliance.In particular,national institutions and go

204、vernments will step up their use of fiscal policy interventions to help curb greenhouse gas emissions,environmental pollution and biodiversity loss,either through cap-and-trade systems that cap the total level of greenhouse gas emissions,allowing those with low emissions to sell their extra allowanc

205、es to large emitters,or by imposing direct carbon taxes on emissions(Groothuis 2018).We can expect further developments in carbon tax implementation strategies or changing government practices in relation to tax credits that continue to support fossil fuel consumption and production.Carbon pricing r

206、equirements will continue to change and the practice of internal shadow pricing by leading businesses to support shifts to investment decisions in low-carbon options will continue.Carbon taxes,in particular,could increase government revenues,while also providing an incentive for firms to use and dev

207、elop more environmentally friendly production processes and encourage investment in renewable energy,but they are really only the starting point for taxation as a policy lever in the decade ahead to drive best use of natural capital,particularly more responsible water use,the discouragement of defor

208、estation,as well as more broadly providing incentives for businesses to shift to more circular and environmentally business models.A clear example of policy interventions designed to use tax to help economies transition to more environmentally friendly growth include,for example,the European Green d

209、eal.Yet there remain hurdles to be overcome.While carbon taxes may induce energy innovation and efficiency,they may also reduce business profitability and investment in certain sectors.As ever,care needs to be taken not to stem economic growth,which is in itself vital to repairing finances and avoid

210、ing the type of deep public spending cuts that followed the global financial crisis of 20072008.What we see in Poland right now is a lot of digitalisation and technology going into the regulation of taxes.The government and Ministry of Finance are bringing in new tools,and you need good technology s

211、ystems to meet those requirements.CEE roundtableTrend 10:Sustainability reframes the risk and reporting agendaThe Covid-19 crisis has irreversibly changed organisations approaches to risk management,and exposed significant shortfalls in prevailing risk-management practices.Too often,these practices

212、operated in isolation,focusing too heavily on financial risks,or didnt effectively identify the interrelationships of different risks confronting the organisation.The crisis has particularly highlighted the importance of managing related ESG risks in creating and protecting long-term value as busine

213、ss uncertainty increases,the speed of business change accelerates,and as investor communities increasingly build ESG risk assessments into company valuations.Organisations need to be better placed to establish metrics,monitor and measure ESG and wider business value driver-related risks and understa

214、nd the materiality of these factors(ACCA 2021b).This convergence of enterprise risk management(ERM)and ESG continues to be a priority as standard setters and regulators increasingly require companies to report against ESG metrics.There is growing momentum for a shift to a single global standard,part

215、icularly for climate risk reporting but also to achieve the broader harmonisation,simplicity and clarity needed for non-financial and ESG reporting.In 2020,the five major non-financial reporting organisations2 published a statement of intent committing them to working together towards more holistic

216、and comprehensive corporate reporting.2.Environment1.Economy5.Workforce4.Technology3.SocietySystem of Environmental-Economic Accounting Ecosystem Accounting(SEEA EA)(UN 2021)In March 2021,the 52nd United Nations Statistical Commission adopted the System of Environmental-Economic Accounting Ecosystem

217、 Accounting(SEEA EA)(UN 2021),a new statistical framework that will enable countries to measure their natural capital and understand the immense contributions of nature to our prosperity,and the importance of protecting it.On the adoption of the SEEA EA framework,the Secretary-General of the United

218、Nations,Antnio Guterres,said:The adoption of this economic and environmental framework is a historic step towards transforming the way how sic we view and value nature.No longer will we allow mindless environmental destruction to be considered as economic progress.Natures resources still do not figu

219、re in countries calculations of wealth.The current system is weighted towards destruction,not preservation.The bottom line is that we need to transform how we view and value nature.We must reflect natures true value in all our policies,plans and economic systems.The rewards will be immense.Quoted in

220、 UN 20212 The Global Reporting Initiative(GRI),the Sustainability Accounting Standards Board(SASB),the International Integrated Reporting Council(IIRC),the Climate Disclosure Standards Board(CDSB)and the Carbon Disclosure Project(CDP).29PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATI

221、ONS|DRIVERS OF CHANGE:2.ENVIRONMENTThis was followed by the recent merger of the Sustainability Accounting Standards Board(SASB)and the International Integrated Reporting Council(IIRC)into the newly created Value Reporting Foundation(VRF)(VRF n.d.).There are other developments too:as announced in Ap

222、ril 2021,the EU is updating its Non-financial Reporting Directive,which requires large public-interest companies with more than 500 employees to disclose information on a wide range of issues from environmental and social matters to human rights,anti-corruption and bribery(European Commission n.d.).

223、This extends the scope of companies that will have to report,requires audit assurance over the information and introduces requirements to report to mandatory EU sustainability reporting standards(European Commission 2021).Additionally,the World Economic Forum(WEF)has released its new standards on co

224、mmon metrics and consistent reporting for sustainable value creation(WEF 2020b)defining 21 core metrics,the Stakeholder Capitalism Metrics with significant big company take up(Ward 2021).Further,the International Financial Reporting Standards(IFRS)Foundation consultation(IFRS 2021)on establishing a

225、global sustainability standards board to deliver high-quality international sustainability-related reporting standards is on track with potential plans to publish its first set of standards in the middle of next year(Jones 2021).There is a big change in terms of the expectation of people wanting a h

226、olistic view from an ESG and financial standpoint and ESG information is just as important as financial information particularly with their associated materiality concepts.Expert group audit and taxExternal factors such as economic,natural,social and the environment may lead to a global business rev

227、olution,which will ultimately and more directly lead to changes in accounting.China roundtable2.Environment1.Economy5.Workforce4.Technology3.SocietySPOTLIGHT ON:Rethinking risk for the futureACCAs report Rethinking risk for the future examines the future of enterprise risk managementCovid-19 has tri

228、ggered the biggest crisis in a generation,having caused not only a global pandemic but also unprecedented disruption to businesses and economies worldwide.While we have seen how the awareness of risk management and its scope evolve with previous crises,the Covid-19 pandemic is unique.It has extended

229、 longer than any of us ever imagined and was not sparked by a financial crash or political event.It has hit everyone between the eyes and accelerated many existential risks that were already emerging but had nevertheless been neglected by even the most mature risk frameworks around the world.Most be

230、st-practice risk frameworks saw either a highly transmissible virus or the next economic crisis on the horizon but not the disruption of the two combined.No one could have predicted the extent of the lockdowns and other associated geopolitical risks.The question now is how we can rethink risk in thi

231、s new fast-changing,complex world.ESG:the new frontier of ERMAs ESG issues intensify and increasingly interconnect,the need for proper integration is essential to an organisations long-term success.An enterprise-wide view is necessary to attain the mindset needed to integrate ESG-related risks effec

232、tively.Hence,the convergence of ERM and ESG continues to be an important focus for accountants as regulators and other stakeholders increasingly require companies to report their ESG impacts.Integrating treatment of ESG risks makes sense to do from an enterprise-wide perspective because it allows th

233、e company to deal with them in a structured and more strategic way as part of its aggregate risk management.Organisations with an enterprise-wide view of their aggregate risk can monitor and report on KPIs and KRIs more efficiently and accurately and leverage existing metrics by repurposing them tow

234、ards ESG goals.ERM allows the organisation to reduce the downsides more effectively while also capturing opportunities and enhancing long-term performance.(ACCA 2021b)We have just finished our AGM a few minutes ago.And some of the questions that were asked by shareholders is,what is the proportion o

235、f your green financing versus your total assets?These questions are coming up from shareholders,from analysts,and various other stakeholders.So this is where the finance person plays a huge role in(producing relevant)reports,for ESG purposes.Theres also green tax and the use of carbon taxes.There ar

236、e lots of areas where the finance person can play a role.ASEAN CEO roundtableWe are looking at ESG from a risk mitigation and risk adaptation perspective.These are the key issues that the board are interested in.We are prudent about the metrics we target.Interviewee quoteRisk management is going to

237、be an increasingly important issues for accountants,to understand the dimensions of strategic risks and to analyse and understand their implications.Interviewee quote30PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:2.ENVIRONMENT2.Environment1.Economy5.Workforce4

238、.Technology3.SocietyKEY DATA POINTSTo what extent do you believe the implementation of environmental business practices will impact the role of sustainable business and finance professionals?Responses to ACCA member survey,impacts over the next five to ten years(Scale of 10 where 1=no impact,10=very

239、 significant impact)To what extent do you believe carbon taxes and other environmental policies will impact the role of sustainable business and finance professionals?Responses to ACCA member survey,impacts over the next five to ten years(Scale of 110 where 1=no impact and 10=very significant impact

240、)To what extent do you believe the changing nature of business risk will impact the role of sustainable business and finance professionals?Responses to ACCA member survey,impacts over the next five to ten years(Scale of 110 where 1=no impact and 10=very significant impact)To what extent do you belie

241、ve growing stakeholder interest in the climate agenda will impact the role of sustainable business and finance professionals?Responses to ACCA member survey,impacts over the next five to ten years(Scale of 110 where 1=no impact and 10=very significant impact)To what extent do you believe wider compa

242、ny disclosures on non-financials will impact the role of sustainable business and finance professionals?Responses to ACCA member survey,impacts over the next five to ten years(Scale of 110 where 1=no impact and 10=very significant impact)Implementation of environmentally friendly business practices7

243、.29Use of carbon taxes and other environmental policy mechanisms7.12Changing nature of business risk 7.99Growing stakeholder interest in the climate agenda7.39Wider company reporting disclosures on non-financial issues 7.7631PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS

244、OF CHANGE:2.ENVIRONMENT2.Environment1.Economy5.Workforce4.Technology3.Society nInvestor focus for enterprise value:the new board would focus on information that is material to the decisions of investors,lenders and other creditors.nSustainability scope,prioritising climate:due to the urgent need for

245、 better information about climate-related matters,the new board would initially focus its efforts on climate-related reporting,while also working towards meeting the information needs of investors on other ESG(environmental,social and governance)matters.nBuild on existing frameworks:the new board wo

246、uld build upon the well-established work of the Financial Stability Boards Task Force on Climate related Financial Disclosures(TCFD),as well as work by the alliance of leading standard-setters in sustainability reporting focused on enterprise value.The Trustees will consider the prototype proposed b

247、y the alliance for an approach to climate-related disclosures as a potential basis for the new board to develop climate-related reporting standards.To prepare for this work,the IFRS Foundation will initiate a process of structured engagement with the relevant organisations.nBuilding blocks approach:

248、by working with standard-setters from key jurisdictions,standards issued by the new board would provide a globally consistent and comparable sustainability reporting baseline,while also providing flexibility for coordination on reporting requirements that capture wider sustainability impacts.Source:

249、32GRIGlobal Reporting Initiative(2020)PurposeProvides organisations with standards to report on their sustainability impacts relating to environmental,social and governance issuesWho for?Companies of any size,sector or location as well as investors and policymakersDISCLOSURESDisclosures?Governance,s

250、takeholder and reporting practices?Economic performance,market presence,procurement practices?Natural capital emissions,biodiversity,water,energy?Social including workforce relations,employee inclusivity,community engagementIIRC&SASBValue Reporting FoundationPurposeA framework and set of tools from

251、the recent IIRC and SASB merger that supports business and investor decision making to create long term valueWho for?Relevant to companies in any sector or locationDISCLOSURESDisclosures?Uses the integrated reporting framework for multi-capital corporate reporting around material issues impacting an

252、 organisations strategy,governance and performance to produce integrated reports?Uses SASB standards to provide industry-specific disclosure topics and metrics to inform and strengthen what should be include in the integrated report?Disclosure across 5 core areas of environmental,social,human,busine

253、ss model and innovation and leadership and governanceTCFDTask Force for Climate Related DisclosuresPurposeBusiness led framework with the premise that climate risk has financial implications and must be considered as part of normal business,investment and strategic planning decisionsWho for?Becoming

254、 mandatory in the UK for listed companies,UK registered large private companies and financial institutions,insurance companies and asset managers and particularly relevant to those with large climate risk activitiesDISCLOSURESDisclosures?Primarily around the core areas of how climate related risks a

255、nd opportunities impact governance,strategy and financial planning,risk management,as well as disclosing climate related metrics and targetsCDSBClimate Disclosure Standards BoardPurposeFramework for reporting environmental and climate change impacts in mainstream corporate reportsWho for?Relevant to

256、 companies in any sector or locationDISCLOSURESDisclosures?Range of environmental impacts from governance and management of environmental policies and targets,risks and opportunities,performance and comparative analysisFIGURE 6:Summary of key non-mandatory reporting standards2.Environment1.Economy5.

257、Workforce4.Technology3.Society33How environmental drivers of change affect the sustainable business and finance professional of the future(some examples)Further related reading from ACCA:PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:2.ENVIRONMENT nClimate risk

258、reporting:As more organisations under different jurisdictions are required to report on global energy use and greenhouse gas emissions,there are increasing opportunities for finance professionals to be involved in supporting organisations on wider climate risk reporting and assurance,as well as havi

259、ng a specific role in ensuring that climate-related risks affecting the financial statements are properly disclosed.The sustainable business and finance professional could be helping calibrate the financial impacts on the organisations of shifting business practices to net zero.These include impacts

260、 on cash flows,balance sheets and market valuations from continued used of non-green assets and associated climate-change risks,or evolving audit practices to ensure that such risks are appropriately discussed in audit opinions.(Further reading:Baboukardos et al.2021)nNatural capital management/Circ

261、ular business models:There is increasing need for finance professionals to support organisations in the management of natural capital.From improving control environments that capture and help mitigate natural capital risks or advising their clients and employers on the risks,liabilities and reputati

262、onal fall out arising from corporate activity that exacerbates climate change,through to the development of performance-management frameworks that help organisations understand their natural capital risks and opportunities as well as capturing,measuring and reporting on natural capital activities.(F

263、urther reading:Machado 2021)nCarbon taxes/Cap-and-trade systems:Increasing legislation for green taxes to support carbon emission cuts or new policy measures relating to cap-and-trade systems present businesses with an array of options in terms of how they wish to manage their responsibilities in re

264、lation to carbon emissions,as well as the need to assess the strategic,financial and operational implications of the strategies they choose to adopt in response.Here sustainable business and finance professionals can play a critical role in helping businesses calibrate the impacts of the choices the

265、y make as they seek to reduce costs and mitigate the adverse reputational impacts.This includes,for example,helping apply internal carbon pricing policies to redirect investment initiatives into greener alternatives,or analysing and calibrating the financial and business impacts of these decisions.2

266、.Environment1.Economy5.Workforce4.Technology3.SocietyClimate change risk-related disclosures in extractive industriesA review of the 2020 report of leading organisations in the extractive industries to assess the quality of disclosures in relation to climate change.Professional accountants changing

267、business for the planet:a guide to natural capital managementAn analysis of the future role of professional accountants in helping organisations manage and report on natural capital initiatives and impacts.Technology tools and the future of tax administrationA report that considers the future of tax

268、 administration and the impact of digitalisation.34Accountants and the low-carbon transitionWith the climate crisis now at code red,finance teams must step up to help their organisations decarbonise.Sanjay Rughani is chair of IFACs Professional Accountants in Business Advisory Group,and CEO of Stand

269、ard Chartered Bank Tanzania.PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|CASE STUDY:ENVIRONMENTAs COP26 finance adviser and UN special envoy Mark Carney made clear at the IFAC and ACCA Climate Week event in September 2020,the accountancy profession is essential to the worlds ac

270、hievement of a low-carbon economy.Of course,the contribution of individual accountants to the transition will depend on their role,but there are few activities that accountants undertake that do not require them to think about climate impacts and their financial consequences.The transition to a net-

271、zero world capable of keeping global warming below 2C requires climate-literate accountants who can:nadvise their clients and employers on the risks,liability and reputational damage arising from corporate activity that contributes to climate change nsupport the strategic,operational and financial a

272、ssessment of climate change,and steer their organisation towards the opportunities that decarbonisation brings nprovide management and investors with the information they need to understand the current and prospective impact of climate-related matters on an organisation,and its financial position an

273、d prospects.Government commitmentsIt may have been slow to start,but a low-carbon transition is underway.It will change how economies operate,creating both uncertainty and,at the same time,significant opportunity.Governments and businesses are rapidly setting net-zero emissions targets.Some jurisdic

274、tions such as the EU,US and China are setting increasingly aggressive targets.In total to date,about 120 governments and a fifth of the worlds 2,000 biggest listed companies have made net-zero commitments.However,these ambitious commitments disguise the reality:that business-as-usual remains prevale

275、nt.Sad realityThe MSCIs Net-Zero Tracker gauges the progress of the worlds public companies toward reducing emissions.It shows that without any change in their current emissions(which remain at 2013 levels),listed companies will deplete their remaining emissions budget,based on meeting the Paris Agr

276、eements target of limiting global warming to 1.5C,in just five years and eight months.Companies have 21 years before they use up the emissions budget to limit global warming to a less ambitious 2C.Net-zero emissions commitments give a clear signal of intent to achieve the targets of the Paris Agreem

277、ent,but there is significant work to be done in particular,companies putting in place targeted strategies and robust short and medium-35PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|CASE STUDY:ENVIRONMENTInadequate informationA major challenge for investors and the capital marke

278、ts is that climate risk disclosure globally is inadequate.For climate risk to be fully reflected in company valuations,every company,bank,insurer and investor needs to disclose their climate-related risks on a standardised basis.Company valuations in a 2C or lower world will likely be very different

279、 given the potentially significant implications on future cashflows.Climate change can only be fully taken into account in valuations when companies have incorporated climate-related risks in their financial planning and performance.As climate is increasingly integrated into corporate decision-makin

280、g and reporting,valuations will better reflect the actual and potential climate impacts.Accounting and finance professionals have a critical role in achieving global net-zero emissions.In particular,CFOs and finance teams provide the information needed to drive decisions and allocate capital,and typ

281、ically interface with the capital markets.Accounting4Sustainabilitys Net zero a practical guide for finance teams highlights the key activities of finance teams in helping to achieve net zero in their organisations.Quantifying impactsWe heard from KPMG at IFACs recent Professional Accountants in Bus

282、iness Advisory Group meeting that a significant challenge in climate-risk assessments and disclosures is that climate impacts are not quantified and monetised.Quantification helps to drive medium and long-term planning,and is where accountants involved in financial planning and analysis can signific

283、antly contribute by providing financial-related information about profits and valuations that reflect climate-related risks and events.Without quantification of climate risks and opportunities,companies will find it hard to compare climate change against their wider enterprise risks,and investors wi

284、ll be unable to make informed decisions about the allocation of their capital.There is also a critical link between internal financial planning and external reporting,of which accountants need to be aware.Carbon pricing is essential to understanding climate risk and a companys economic outlook.Conse

285、quently,carbon pricing assumptions from internal financial planning need to carry through to financial reporting.Inconsistent use of carbon pricing assumptions in asset and liability valuations for accounting and public disclosure hides from investors the potential for adverse effects of lower asset

286、 values,higher impairment losses,shorter estimated useful lives,and earlier asset retirement costs.Rising to the occasionUnderstanding and communicating how their company is becoming net-zero compatible will be part of any finance leaders conversations with boards,investors and other stakeholders.Th

287、ey will need to explain risks and opportunities,targets and KPIs,prioritisation of capital investment,and financial impacts,including how climate change relates to accounting estimates and judgements used in the preparation of financial statements and reports.For climate reporting to move beyond bei

288、ng a marketing exercise to providing information that boards and investors need to enable decarbonisation,accountants need to be part of the equation and rise to the occasion.term targets,and ensuring,where possible,that future investments are clearly aligned.Climate Action 100+has put in place a ne

289、t-zero company benchmark to help track business alignment with the Paris Agreement.More than 40 asset managers,including Vanguard and BlackRock,signed up to the Net Zero Asset Managers Initiative,pledging to make their portfolios net-zero by 2050 or earlier.In his annual letter,BlackRock CEO Larry F

290、ink calls on all companies to disclose a plan for how their business model will be compatible with a net-zero economy.Capital markets have started to make decisions about the transition to renewable and sustainable energy,with the cost of capital for fossil fuel options increasing.Financial capital

291、is seeking solutions to reduce greenhouse gas emissions.Meanwhile,driven by the significant threat of climate-related stranded assets,central banks and financial supervisors are assessing their role in ensuring the resiliency of the financial system and the solvency of financial institutions.36PROFE

292、SSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:3.SOCIETYSustainable organisations of the future understand they are part of the very fabric of society,but rapid shifts in communities across the world at an extraordinary pace will have profound implications for how bu

293、sinesses operate in the future.Stakeholders now demand greater accountability,inclusivity and transparency from corporations on how they are run and the wider societal impacts they create,and organisations across the globe increasingly understand that they have to be good corporate citizens,provide

294、social value to their communities,treat their employees,customers and other stakeholders appropriately,as well as providing financial return to shareholders.In the wake of the Covid-19 crisis there is an almost inexhaustible list of societal challenges to face as the pandemic raised new existential

295、questions on the role of government in society.The crisis raised new concerns on trust,intrusion,data privacy and ethical leadership,as well as an appreciation of the disproportionate impact the pandemic had on marginalised groups in society.It also exposed further underlying systemic social and rac

296、ial equality challenges across the world.And there are other longer-term societal trends also shaping and changing the global economy too.These include shifting global demographics due to ageing populations and changing fertility rates;transformation in the global education landscape,which has the p

297、otential to transform livelihoods in poorer countries;and rapid business model change responding to changing consumer needs.For businesses across the world that seek to be at the heart of the communities they serve,these issues present risks as well as opportunities as the workplace transforms.3.Soc

298、iety3.Society2.Environment1.Economy5.Workforce4.Technology37PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:3.SOCIETYTrend 11:Leadership trust in the spotlightTrust in long-established institutions across society has been waning but was already declining before t

299、he Covid-19 crisis,spurred by a technology revolution and job displacement as well as major social challenges.The 2021 Edelman Trust Barometer(Edelman 2021)reveals widespread mistrust of social institutions and leaders across the world,within an environment of information bankruptcy.While the good n

300、ews for business leaders is that trust in organisations has slightly improved,the broader narrative is one of challenge for organisations as they seek to serve multiple stakeholder interests and produce social as well as financial value,in an environment where demands for organisational transparency

301、 is growing and where corporate reputations are increasingly vulnerable as corporations are held to account.In addition,there is a tide of regulation such as the General Data Protection Regulation(GDPR)in the EU and the California Consumer Privacy Act imposing customer data privacy rules on organisa

302、tions.Businesses must increasingly recognise that poor data management damages their brand,revenue and customer loyalty.As corporate purpose,equity and social inclusion come to dominate the business agenda,this means a greater focus on ethical leadership.There will be growing emphasis on connecting

303、desired social outcomes with tangible business outcomes and performance,otherwise trust in corporate organisations and the people who lead them will diminish further.I feel going forward the younger generation that are coming through that they will only work for companies who have a purpose aligned

304、to sustainability and ethics and they will walk with their feet,they wont work you know.Ireland roundtableThe new currency will be trust,as citizens demand more.Professional accountants(working in sustainable organisations)must have this at the back of their minds.Talent leaders roundtableI see ethi

305、cs as a foundational facet to our profession no matter what service were delivering.Talent leaders roundtableTrend 12:Inclusivity makes business senseThe diversity and inclusion agenda has been catapulted into prominence by the Covid-19 crisis,with women,ethnic minorities and the younger generation

306、disproportionately disadvantaged by the economic impact on the labour market.At the same time,governments have promised to leave no one behind and build back better for the future,as demands grow for wider social justice.There is growing evidence that the most diverse companies are now more likely t

307、han ever to outperform their less diverse peers in profitability(Dixon-Fyle et al.2020).But diversity doesnt matter just for business performance a lack of diversity in organisations creates significant reputational risk in different ways and damages everything from talent recruitment to employee af

308、filiation to customer relations.In response organisations are seeking to evaluate and address their working practices,cultures and organisational biases as an emerging priority.One recent survey indicated that over 70%of business leaders said they have never in their entire careers felt more pressur

309、e to engage with social justice issues(Porter Novelli 2020),as the issues of diversity,including discrimination,come to dominate the corporate agenda.Reporting requirements relating to diversity and inclusivity measures in the workplace will also continue to grow.In 2020 the US Securities and Exchan

310、ge Commission(SEC)3.Society2.Environment1.Economy5.Workforce4.TechnologyFIGURE 7:The business case for diversity in executive teams remains strongSource:Dixon-Fyle et al.202038PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:3.SOCIETYapproved additional reporting

311、recommendations for publicly traded companies,including for a wide range of human capital indicators such as diversity and inclusivity measures,but there are calls for it to go further(Reuters 2021).Theres also growing interest from the investor communities as more transparency is demanded from busi

312、nesses on how they are addressing diversity issues through evolving inclusivity practices,including metrics.Our 2019 analysis finds that companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth

313、quartile up from 21 percent in 2017 and 15 percent in 2014.Dixon-Fyle et al.2020Diversity is an area that perhaps in the past would have been well outside the remit of a qualified accountant and probably wouldnt have touched the finance function at all,but now its absolutely part of their role.I thi

314、nk its because for some organisations,the accountant is often the only professionally qualified member of a global awarding body that lays out ethical standards and guidance on some of these principles.So,I actually think accountants have a responsibility and moral imperative to step up and guide th

315、eir organisations in a direction that we all know is necessary.Talent leaders roundtableWhether its sustainability or diversity issues,or some other non-traditional non-financial areas I think theres going to be huge challenges for accountants in these areas,but also huge opportunities for accountan

316、ts to really play a powerful role.Talent leaders roundtable3.Society2.Environment1.Economy5.Workforce4.TechnologyTrend 13:Demographic shifts change talent strategiesBy 2030,the global population will have risen to approximately 8.5 billion from its current level of approximately 7.8 billion today(Wo

317、rldometer n.d.).However,population growth is slowing from about 12 per cent per annum to approximately 0.5 per cent(Cilluffo and Ruiz 2019),primarily because of falling birth rates and ageing populations.In addition,longevity is increasing.By 2050 it is estimated that the number of people over the a

318、ge of 65 years will triple and the number of those over 80 will quadruple,mostly in mature markets.The global working-age population is expected to grow at a much slower pace over the next decade,and half as fast in the years to 2030 as in the last 15 years(ILO 2021).This is a particular issue in ma

319、ture economies,with dwindling workforce populations,access to talent will be even harder to obtain as economies transition and skill gaps emerge across the workforce.For many mature economies,this relative transition to an older workforce has profound implications for reskilling and inter-generation

320、al workforce strategies.In countries with rapidly ageing populations we Long Slide Looms for World Population,With Sweeping RamificationsNew York Times,22 May 2021 Fewer babies cries.More abandoned homes.Toward the middle of this century,as deaths start to exceed births,changes will come that are ha

321、rd to fathom.All over the world,countries are confronting population stagnation and a fertility bust,a dizzying reversal unmatched in recorded history that will make first-birthday parties a rarer sight than funerals,and empty homes a common eyesore.Maternity wards are already shutting down in Italy

322、.Ghost cities are appearing in north-eastern China.Universities in South Korea cant find enough students,and in Germany,hundreds of thousands of properties have been razed,with the land turned into parks.Like an avalanche,the demographic forces pushing toward more deaths than births seem to be expan

323、ding and accelerating.Though some countries continue to see their populations grow,especially in Africa,fertility rates are falling nearly everywhere else.Demographers now predict that by the latter half of the century or possibly earlier,the global population will enter a sustained decline for the

324、first time.A planet with fewer people could ease pressure on resources,slow the destructive impact of climate change and reduce household burdens for women.But the census announcements this month from China and the United States,which showed the slowest rates of population growth in decades for both

325、 countries,also point to hard-to-fathom adjustments.The strain of longer lives and low fertility,leading to fewer workers and more retirees,threatens to upend how societies are organized around the notion that a surplus of young people will drive economies and help pay for the old.It may also requir

326、e a reconceptualization of family and nation.Imagine entire regions where everyone is 70 or older.Imagine governments laying out huge bonuses for immigrants and mothers with lots of children.Imagine a gig economy filled with grandparents and Super Bowl ads promoting procreation.(Cave et al.2021(extr

327、act)39PROFESSIONAL ACCOUNTANTS AT THE HEART OF SUSTAINABLE ORGANISATIONS|DRIVERS OF CHANGE:3.SOCIETYmay see skills shortages in particular areas,or an increased focus on automation strategies to augment labour.One of the other critical ways in which organisations will be affected by shifting demogra

328、phics is through global urbanisation.In 2018,55%of the worlds population lived in urban areas.This is expected to grow to 60%by 2030(Migration Data Portal 2021).Here,the pandemic is an inflection point for thinking differently about the future of cities and the ways they are designed and developed i

329、n the future.From a talent perspective,major cities have always had a monopoly on high-paying jobs and metropolises serve as talent and innovation hubs.Their success,or lack of it,in the wake of the Covid-19 crisis will have an impact on future talent acquisition strategies,particularly in a world o

330、f work where knowledge workers,in particular,may be more distributed away from metropolitan areas.The demographics for me are going to be a huge,huge change over the next couple years just in terms of what we as a society want and how we behave.So thats impacting on our business,and our activity thr

331、ough our hospitals.And thats having an impact on my team of accountants and how we support the organisation.Public sector roundtableTrend 14:Education is technologically transformedAccess to digital economy skills and education will be essential to businesses over the next decade as the global econo

332、my transforms and the demand for new workplace capabilities emerges.The transition to remote working and social distancing requirements has been made possible by growing internet connectivity across the world.This is also transforming education,increasing its accessibility and affordability through

333、online distribution,although some regions of the world remain challenged FIGURE 8:The future of training and education Source:HolonIQ 20213.Society2.Environment1.Economy5.Workforce4.Technologyin Wi-Fi connectivity.In 2020 the education technology market size was valued at US$89.4bn but is expected to grow at an annual compound rate of 19.9%a year between 2021 and 2028(Grand View Research 2021)(Fig