08 December 2009
Accountants must take ownership of corporate climate change initiatives
Accountants around the world must start taking ownership of their organisations’ climate change initiatives as they may ultimately be held accountable for the relevant targets. A report launched by CIMA (Chartered Institute of Management Accountants) today warns that without the full commitment of finance professionals to adapt to and mitigate climate change through clear and achievable goals, organisations risk running up higher costs and damaging their competitive edge. See the report, ‘Accounting for Climate Change’.
With the Copenhagen Conference, COP15, this week, there is a need for businesses to get prepared for a universal set of climate regulations. CIMA’s report outlines how accountants are critical to ensuring climate change strategy is properly embedded within mainstream business life. This may seem self-evident, but recent CIMA research shows that over half of the 900 international accountants and Corporate Social Responsibility (CSR) professionals surveyed say that their organisations do not see climate change as a strategic priority – with one in five saying that climate change is not on their organisation’s agenda at all.
CIMA’s report draws on a series of case studies and shows how, when finance departments are engaged with CSR experts within organisations, it is possible to embed good practice and to actually make significant cost savings from sustainability initiatives. One of the keys to achieving progress comes from finance and CSR departments working more effectively together. This was something CIMA observed in a number of companies that have adopted strong business partnering principles within their finance team and wider organisation.
Charles Tilley, chief executive at CIMA, says:
'CIMA believes that a clear set of targets needs to be reached at this month’s Copenhagen Conference and that organisations around the world must ensure their finance professionals are at the heart of climate change initiatives if they are to be successful. Whatever the result of the deliberations in Denmark, a clear set of internationally agreed climate change targets is a realistic prospect. Finance departments must start planning for such an eventuality now.'
Alongside launching ‘Accounting for Climate Change’ today, CIMA has joined forces with the Copenhagen Communique to issue a statement alongside hundreds of other organisations around the world calling for a credible deal to be reached at the Copenhagen Conference this month.
The Institute has further signed a letter by Accounting for Sustainability, a Prince of Wales initiative, calling for a single set of universally accepted standards for measuring, reporting on and monitoring greenhouse gases around the world.
https://www1.cimaglobal.com/cps/rde/xchg/SID-0AE7C4D1-4142362E/live/root.xsl/10675_36622.htm
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Accountants must take ownership of corporate climate change
Arun S
New Delhi, Dec. 1
Soon, Indian companies will have to compulsorily follow a cost-accounting standard on climate change.
The Corporate Affairs Ministry has asked the Institute of Cost and Works Accountants of India (ICWAI) to prepare such a Standard — the first of its kind even globally. This means companies will have to work out costs involved in adopting environment-friendly measures and disclose them.
The Government can use this data while taking policy decisions and for climate change talks.
The Ministries of Corporate Affairs and Environment will shortly hold discussions on this. The new cost-accounting Standard on environment-friendly measures will be high, but achievable by Indian companies. The Standard will be on costs incurred for reducing pollution, re-planting forests or restoring mined areas.
The ICWAI would seek International Federation of Accountants' inputs. The Standard on climate change could be stand-alone or part of other new cost accounting Standards.
Guidelines issued
ICWAI member Mr A. N. Raman said the Institute has released management guidelines on environment-related corporate strategies. The Government may link these guidelines to the Standard on climate change to make it mandatory and ask the Board of Directors to disclose if companies are complying.
“Climate change is the buzz word in management and cost accounting globally and India will take the lead. Environment-friendly companies will get good grades,” said the ICWAI President, Mr G. N. Venkataraman.
https://www.thehindubusinessline.com/2009/12/02/stories/2009120253300100.htm
the Management Accounting Guidlines 4 and 5 of the Institute are in the web site of the institute under the publications category coming under INSTITUTE tab.
27 cost audit standards in the works
By Ronojoy Banerjee Dec 02 2009 , New Delhi
The Institute of Cost and Works Accountants of India (Icwai) is evolving new cost audit standards for companies selling products. There are 27 new standards in pipeline that are set for launch by 2012.
At present, the cost auditors adhere to 12 standards. R Venkataraman, Icwai president, told FC, “We realise that a product cannot be totally audited based on just 12 standards. After consultations with all stakeholders, we have decided to add another 27 new standards to the existing ones.”
Under the Companies Act 1956 only 44 products need to undergo mandatory cost auditing. These include air conditioners, aluminum, caustic soda, cement, cycles, dyes and electricity among others.
These standards are basic parameters set by the institute based on which the cost accountants audit a company. Among the newer standards, even environment costs would be a part of it. “Salman Khurshid (minister for corporate affairs) has shown eagerness taking into consideration the environment costs,” Venkataraman said.
He added that the institute would shortly consult corporate affairs and environment ministries for developing cost audit standards on climate. A corporate affairs ministry official, however, said that MCA is yet to hold discussions with the environment ministry. “With Copenhagen coming up this is not the right time to broach a new subject. But, the idea will find a lot of support,” he said.
Some of the newer standards that are under consideration would include pollution control expenses, distribution and marketing overheads, depreciation, stock valuation and cost of conversion
https://www.mydigitalfc.com/knowledge/27-cost-audit-standards-works-949
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