Being a champion for the environment and invoking lasting community change is a lifestyle — and it’s important for many of us. Perhaps you only shop for brands that promote sustainability. Maybe you champion diversity and inclusion or volunteer to give back to your community.
Environmental, social, and governance (ESG) efforts that you prioritise likely align with priorities for small businesses and global organisations alike who are implementing ESG initiatives. As efforts are rolled out, tracking progress is key to success, and organisations need management accountants to create reports that not only meet requirements but also identify areas for improvement.
ESG reporting is where a management accountant shines.
Traditional finance and accounting skills can easily transfer into this global focus, and advanced knowledge on ESG gives the professional a competitive edge. When you, a management accountant, view business operations through an ESG lens, you use your skill sets in unique ways and unlock a rewarding and relevant career path built on your passion for creating tangible change.
The rise in importance of ESG
ESG is no longer a buzzword. ESG initiatives are must-haves in an organisation, greatly influenced by consumers and investors.
Changing consumer habits transform companies. Consumers want to support companies that provide affordable products and prioritise sustainability and ESG efforts. So, organisations and businesses are shifting. They’re taking steps to create sustainable business practices for greater impact.
Consumers and investors want transparency on sustainability activities and data through clear reports known as ESG reports or integrated reports.
As organisations implement ESG reporting, global standards are being drafted. International standards will create a baseline for ESG-related disclosures and general reporting requirements. Standardisation will allow organisations, investors, and consumers to trust the data they see and compare it with that of other companies.
Become fluent in all things ESG
Management accountants are no strangers to upholding standards and simplifying what’s complex. Many day-to-day responsibilities of a management accountant already involve ESG components. And your knowledge of technology, data analytics, and critical thinking are strong steps in the right direction.
ESG data tells an organisation’s story, and management accountants can gather the right information and get that story to shine.
Organisations could be unprepared to track and report progress if they don’t have clearly defined ESG goals.
You can spearhead the effort to identify ESG initiatives that the company could immediately implement. And because you know how the money flows in and out of the company, you can identify long-term changes. Perhaps you document the distance of vendors under contract that could potentially be replaced by more local vendors once the contract expires.
Great news if you have a keen eye for detail: As standards are set and guidance for ESG reporting becomes clear, you can apply your talents to creating transparent reports.
In-demand ESG skills for rewarding careers
The demand for high-quality and comparable ESG data is on the rise, and you can respond by being a champion for the environment as a management accountant.
Organisations want to document and share a complete picture of their business operations, and this requires financial and nonfinancial data. It’s not just an organisation’s leaders who want ESG data — customers, investors, employees, community members, and other groups demand it.
ESG is greatly changing the business landscape, and earning the Chartered Global Management Accountant® (CGMA®) designation can lead to a successful, meaningful career where you can positively influence a company’s strategic goals and priorities. In the growing ESG landscape, management accountants can get accurate information on initiatives and regulations through AICPA® & CIMA®.
