ACCA-可持續(xù)性報(bào)告：風(fēng)險(xiǎn)和重要性 SUSTAINABILITY REPORTING – RISK AND MATERIALITY 2025

SUSTAINABILITYREPORTING–

RISKAND

MATERIALITY

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|CONTENTS

Contents

AboutACCA 3

Introduction 4

Step1:Identifyingtheorganisation’sSRROs 5

Scanningtheenvironment 6

Leveragingtheexistingrisk-managementprocess 7

Leveragingtheknowledgeandexpertiseofpeople

acrossdifferentfunctions 8

Step2:AssessingwhetherSRROscouldreasonablybe

expectedtoaffecttheorganisation’sprospects 9

Step3:Determiningmaterialinformationfordisclosure 13

Conclusion 17

Glossary 18

Acknowledgements 20

References 21

AUTHOR

AaronSaw

HeadofCorporateReportingInsights–Financial

7

2

AboutACCA

WeareACCA(theAssociationofCharteredCertifiedAccountants),agloballyrecognisedprofessionalaccountancybodyprovidingqualificationsandadvancingstandardsinaccountancyworldwide.

Foundedin1904towidenaccesstotheaccountancyprofession,we’velongchampionedinclusionandtodayproudlysupportadiversecommunityofover252,500membersand526,000futuremembersin180countries.

Ourforward-lookingqualifications,continuouslearningandinsightsarerespectedandvaluedbyemployersineverysector.Theyequipindividualswiththebusinessandfinanceexpertiseandethicaljudgementtocreate,protect,andreportthesustainablevaluedeliveredbyorganisationsandeconomies.

Guidedbyourpurposeandvalues,ourvisionistodeveloptheaccountancyprofessiontheworldneeds.Partneringwithpolicymakers,standardsetters,thedonorcommunity,educators,andotheraccountancybodies,we’restrengtheningandbuildingaprofessionthatdrivesasustainablefutureforall.

Findoutmoreat

?2025AssociationofCharteredCertifiedAccountantsFebruary2025

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|INTRODUCTION

Introduction

Identifyingrelevantsustainability-relatedrisksandopportunities(SRROs),andthenthekeyinformationfordecision-makingrequirestimeandresources.Tohelpyoudothis,ACCA

outlinedthethreestepsinChapter3ofthe

SustainabilityReporting–theGuidetoPreparation

(theGuide)(Machadoetal.2023).Fordetailsofthethree-stepapproach,readChapter3intheGuide:‘Determiningthematerialsustainability-relatedinformationtobereported’.

Inthisarticle,wesupplementthesestepswithfurtherillustrative,anonymisedreal-life

examples,includingafewthatdemonstratethepracticesoflesser-resourcedorganisations,suchassmallandmedium-sizedentities(SMEs).1Theexamplesaretheretoinspireour

communityofaccountants,financeandbusinessprofessionalstolearn,adaptandimprove

theirapproachestoidentifyingandcommunicatingrisksandopportunities.Theexamplesarebiasedtowardsclimate-relatedriskasthisiswheremostorganisationsarebeginningtheir

journeys.Thisisunsurprising,giventhesevereoperationaldisruptionsthatclimate-related

eventsarecausingmany.Theseeventsemphasisetheurgentimportanceofaddressing

bothphysicalandtransitionalclimate-relatedrisksandtheirimpactonbusinesscontinuity,

withstrategiesthatincludemanagingandmitigatingrisksandadaptingtotakeadvantageofemergingopportunities.ACCAwillfeatureexamplesthatgobeyondclimate-relatedriskin

ourfuturework,asthepracticedevelops.Continueengagingwithourworkandreadothercomplementaryresourceson

ACCA’ssustainabilityreportinghub

.

BepragmaticabouttheinformationtobedisclosedaboutSRROsandthestrategiesformanagingthem;providethemost

relevantinformationyoucanandcontinueimprovingthereportingprocess.

TermsdefinedintheGlossaryareinitalicsthefirsttimetheyappearinthisarticle.

1Theseexamplesarebasedondeskresearchandinsightsfromroundtableparticipants.SeeAcknowledgements.Thisarticle

andalltheexamplesinthisarticlearenotinterpretationsof,oramendmentsto,therequirementsinanysustainabilityreportingframeworkorstandard.

4

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP1:IDENTIFYINGTHEORGANISATION’SSRROS

Step1:Identifying

theorganisation’sSRROs

5

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP1:IDENTIFYINGTHEORGANISATION’SSRROS

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Identifyingasustainability-relatedriskoropportunityrequiresathoroughknowledgeoftheorganisation’sbusinessactivities,theresourcesandrelationshipsonwhichitdependsandthosethatitaffects,aswellasitsregulatoryenvironment.

Establishingthecontextoftheorganisation’srelationshipswiththenaturalenvironmentand

thesocietyonwhichitdependswillguidetheorganisationinidentifyingthekeystakeholdersandtheinformationthatcouldinfluencetheirdecisions.

Scanningtheenvironment

PartoftheinitialprocessofidentifyingSRROsisunderstandingthecurrentregulatoryandreportinglandscapeofthejurisdiction(s)wheretheorganisationoperates,includingthe

jurisdictionswherekeycustomersandsuppliersoperate.Potentialshiftsintheregulatoryandreportinglandscapemayaffecttheorganisation’sactivities,itsbusinessmodelandits

businessstrategy,andthereforeitsfuturecashflows,accesstofinanceandthecostofcapital.Anorganisationmaybeaffected,indirectly,bytheSRROsaffectingitskeycustomersand

suppliersinthevaluechain.

EXAMPLEA:Possiblechangesinlegislationinfluencingaccesstofinanceandcostofcapital

Evolutionoffinancialregulationandstandardscouldchangetheexpectationsoflendersandborrowersaboutprovidingsustainability-relatedinformation.Inthenearfuture,information

aboutgreenhousegas(GHG)emissions,aswellasfinancialratios,couldberequiredindebtcovenants.

ManagersandstaffofCompanyAengagewithcustomers,suppliers,lenders,investors

andchambersofcommerceatdifferenttimesthroughoutayear.Thecompany’sriskand

governancefunctioncollatesinsightsgatheredbyitsbusinessdevelopment,customer

relationsandpublicrelationsfunctionstosupplementitshorizonscanningforpossible

changesintheregulatoryandcorporatereportingenvironment.Separately,theriskand

governancefunctionalsomonitorsnewsandannouncementsbythegovernmentthatmayaffectthecompany’sbusiness.TheseinsightscollectivelyenableCompanyAtoidentify

SRROsamongotherrisksoropportunitiesfacingthecompany.

EXAMPLEB:Identifyingclimate-relatedtransitionrisksfromshiftsintheregulatorylandscape

CompanyBisalenderbasedinajurisdictionoutsideEurope.ThemanagersandstaffofitsfinanceandbusinessdevelopmentfunctionsattendedapresentationontheCarbonBorderAdjustmentMechanism(CBAM).3Uponanalysingitscustomerrelationshipmanagement

(CRM)system,CompanyBobservedthatsomeofitscustomers(borrowers)aretradingwithEuropeanorganisationsandsocouldbeaffectedbytheCBAM.Thecompanyrealisedthatitneedsnewdataandnewskillstoquantifytheriskandassessthepotentialeffectsontherecoverabilityofamountsoutstanding.

2Exploretheimportanceofproactiveclimate-riskassessmentinsupportingorganisationalsurvivalin

‘WeatheringtheStorm:BuildingResilienceAgainstClimateDisruptions

’(Skelton2024).

.

3The

CarbonBorderAdjustmentMechanism

(CBAM)putsapriceonthecarbonemittedduringthecarbon-intensiveproductionofgoodsthatareenteringtheEuropeanUnion(EU)toencouragecleanerindustrialproductioninnon-EUcountries(EuropeanCommission2024)

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP1:IDENTIFYINGTHEORGANISATION’SSRROS

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Leveragingtheexistingrisk-managementprocess

Tip

Anorganisation(aparent)thatidentifiesSRROsasagroupwouldneedtoextendthisexercisetoitssubsidiaries.Thereafter,itshouldextendtheexerciseasfaraspossiblethroughthe

valuechain,dependingonavailableskillsandresources.AnalysingwhereanSRROmaybeconcentratedintheorganisation,inthesubsidiaries,orinthevaluechains,wouldbehelpfulassessingtheextenttowhichtheriskoropportunitycouldaffecttheorganisation’sprospectsSection3.2ofthe

Guide

exploresidentifyingSRROscentrallyoratasuitablecomponent.

Sustainability-relatedrisksshouldbemanagedtogetherwithotherrisksfacedbythe

organisation.Manyorganisationshavesiloedmanagementandreportingoffinancialand

sustainability-relatedmatters.Asaresult,theydon’trealisetheyalreadyhaveaccessto

insightsrelatedtoSRROsthatmightberelevantforreporting.Tostreamlinecostandeffort

in

andtoproduceconnectedinformation,itmakessensetoleverageexistingrisk-managementprocessestoidentifyandmanagesustainability-relatedrisks.Roundtableparticipants

.

indicatedthattherisk-managementprocessesmayneedcustomisationtoreflecttheuniquecircumstancesofeachorganisation,includingthetimingandnatureofinformationtobe

presentedtotheorganisation’sgovernancebody,suchastheboardofdirectors,fordecision-making.Forexample,anorganisation’semissionsplanning(apartoftransitionplanning)in

responsetoitsclimate-relatedrisksandopportunitiesisaniterativeprocessleveragingrisk-managementprocesses,amongotherfunctionsintheorganisation.4

OrganisationscanbeoverwhelmedbythesheereffortofgarneringinsightonSRROs

necessarybeforeidentifyingthosethatcouldaffecttheorganisation’sprospects5andthen

decidingthematerialinformationtobecommunicated.Tomanagethiseffort,organisations

canusequalitativeassessmentsbeforeprogressingtoquantitativeassessments.Thelatter

areoftenperceivedasmoresophisticated.Thisapproachrequirestheorganisationtothink

aboutitsactivitiesandtherelatedresourcesandrelationships,essentiallyitsbusinessmodel

andstrategy,whilenotbeingoverwhelmedwithdetails.Qualitativeratingsystems,forexamplered,amberorgreenratings,areespeciallyusefulasriskindicatorswhenprovidingquantitativeinformationislessfeasible.6Asidefromrevealingrisks,aqualitativeassessmentmayunveil

newbenefitsoropportunitiesfrommanagingtheorganisation’ssustainability-relatedrisks.

EXAMPLEC:Identifyingnewopportunities

Whileassessingthefirm’sownclimate-relatedriskinLocationC,apartnerinasmalland

medium-sizedpractice(SMP)realisedthatSMEclients,includingmid-sizedbusinessesin

thefirm’svicinityandinotherlocations,arefacingsimilarchallenges.Theseclientswould

beaskingsimilarquestionsandlookingforsolutions.Therewereopportunitiestodevelop

solutionsforcommonissuesfacedbythefirmanditsclients.Thisprompteddiscussionswithotherpartnerstoevaluatetheprospectsofofferingclimate-riskassessmentasaservice.

4Youcanexploretheneedforstrategiesandtransitionplanstocombatclimatechangein

TheRoleoftheCFOandFinanceFunctionintheClimateTransition:DrivingValueandSustainability

(ACCA,IFAC,PwC2023).Chapter2ofthisreportexploresbuildingrobustemissionstransitionplans.

5Werecommendreading

IFRSS1GeneralRequirementsforDisclosureofSustainability-relatedFinancialInformation

(IFRS2023a)tounderstandtheconceptof‘sustainability-relatedrisksandopportunitiesthatcouldreasonablybeexpectedtoaffecttheorganisation’sprospects’.

6YoucanfindfurtherdetailsonqualitativeassessmentsandproductlifecycleassessmentsthatwouldbehelpfulinidentifyingSRROswithintheorganisationandinthevaluechaininthisreport,

ProfessionalAccountantsChangingBusinessforthePlanet:AGuidetoNatural

CapitalManagementforPerformanceManagers

(ACCA2020).

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP1:IDENTIFYINGTHEORGANISATION’SSRROS

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Leveragingtheknowledgeandexpertiseofpeopleacrossdifferentfunctions

WhenidentifyingSRROs,involvestaffwhoareclosertothedailybusinessactivities,from

operationstomanagement,suchascustomer-facingstaff,thoseontheshoporproductionfloors,andthosemanagingproductionprocesses,suppliersanddeliveries.Thesestaffinteractwiththevaluechaindailyandtheyprobablyknowtheirpartsofthevaluechainbetterthananybodyelse.

Encouragecollaborationamongsuchstafftoidentify‘whatcouldgowrong’inthevaluechain,andthustherisks,aswellasopportunities.Suchcollaborationwillsupportabetterappreciationofthedependenciesof,andimpactson,theworkofotherswithintheorganisation.

Traininginriskandopportunityassessmentandanimplementationplanwillsupportthiscollaboration.Section7.3.1ofthe

Guide

providesmoreguidance.

Videoresource:Watchthisvideoforacasestudyonidentifyingsustainability-relatedrisks

andopportunitiesandmaterialinformationtobedisclosedbyaconglomerate

(SawandIllangasekeran.d.).

EXAMPLED:IdentifyingSRROsthroughqualitativeassessment:climatechange

AfterbeingbriefedbytheheadofsustainabilityaboutLocationD’sclimate-risk

assessment,thechieffinancialofficer(CFO)ofCompanyDsuspectedtheproperty,plantandequipment(PPE)atLocationDcouldbeatrisk.TheplantinLocationDproducesa

keycomponentforthecompany’sproducts.Climatechangewillbringhigherrainfallto

LocationD,increasingthelikelihoodoffloodingofsomeofitsareas.CompanyD’splantislocatedinoneoftheaffectedareas.Floodingwouldseverelydamagesomeoftheplant’sequipment,disruptoperationsandendangerthelivesofemployees.

TheCFOinitiatedanimpairmentassessmentofthePPE,aswellasinvestigatingthe

company’svaluechaininthatlocation,toidentifyandquantifytheeffectsofclimateriskonCompanyD’sfinancialperformanceandposition.Theresultsofthisassessmentwillinformthecompany’sdisasterrecoveryandbusinesscontinuityplan,anditsbusinessstrategyforthemediumtolongterm.Thecompanyalsoplanstocooperatewiththelocalauthoritiesonimprovingthelocation’sfloodmanagementsystem.Tominimisethepotentialdisruptionintheshorttomediumterm,datafromthelocalmeteorologicaldepartmentwillbeusedintheplant’sproduction,procurementandlabourplanning.

EXAMPLEE:IdentifyingSRROsinthevaluechainthroughqualitativeassessment

CompanyEsourcesmaterialsfromvarioussuppliersinfivejurisdictions.Thelawsin

CompanyE’shomejurisdictionprohibitmodernslavery.7TheCFO,headofoperationsand

headofsustainabilityimplementedarobustduediligenceprocesstoassesssuppliers’

compliancewiththecompany’scodeofethicalbusinessconduct,includingbyinspecting

theworkingconditionsatthemanufacturingfacilitiesofkeysuppliers,interviewingthe

suppliers’workerstounderstandtheirworkingconditions,andengagingexternalexpertstoassesscompliancewithlabourstandards.Thecompanyalsocollaboratedwithhumanrightsgroupstounderstandlabourandhumanrightsissues,toimproveduediligencepractices

andworkingconditions.Theprocurementteamhasbeentaskedwithnotifyingtheheadofoperationsaboutanypotentialriskofmodernslaveryinthesupplychain,forfurtheraction.TheseeffortsareenablingCompanyEtoidentifyandmanagetheriskofmodernslaveryinitssupplychains.

7Modernslaveryreferstovariousformsofexploitation,includingforcedlabour,servitude,slaveryandslavery-likepractices,andhumantrafficking.Theexploitationisoftenassociatedwiththeuseofforce,threats,violence,coercion,deception,and/orabuseofpower.Jurisdictionsmayhavelawsthataredesignedtocombatmodernslavery,suchasthe

ModernSlaveryAct2015

intheUK(UKGovernment2015).

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP2:ASSESSINGWHETHERSRROSCOULDREASONABLYBEEXPECTEDTOAFFECTTHEORGANISATION’SPROSPECTS

Step2:AssessingwhetherSRROs

couldreasonablybeexpected

toaffectthe

organisation’sprospects

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SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP2:ASSESSINGWHETHERSRROSCOULDREASONABLYBEEXPECTEDTOAFFECTTHEORGANISATION’SPROSPECTS

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ThepotentialeffectsofanSRROareoftenmoreeasilyunderstoodwhentheyarequantified.TheassessmentofSRROsrequiresallorganisationstobeforward-lookingandtotakelong-termviewstoassessthetangibleoutcomesoftheircurrentorpotentialactionsinmanagingtheirSRROs.

Anorganisationmayhavealreadycollectedsomeofthedatarequiredforthisstepwhen

performingthequantitativeassessmentinStep1.Thedatamaybefinance-,sales-oroperations-relateddata.Dependingontheriskoropportunitybeingassessed,tocompletethisprocess

theorganisationneedstosupplementtheassessmentmodelwithmoredatafromwithinthe

organisationoritsvaluechain.EstimatingthepotentialeffectsofanSRROandgatheringthe

necessarydatatoproducetherelatedanalysiscouldbecomeaniterativeprocessthatwouldinvolveseveralfunctionsincollectingandanalysingacomprehensivesetofdata.Chapter5ofthe

Guide

explainstheprocessforcollectingthenecessarydata.

Byembeddingconnectivityintoitsrisk-managementprocess,anorganisationisalsoabletoassesstheeffectsofanSRROonitsbrand,revenueandtrade-offsfromgeneratingcertainrevenue,coststothebusiness,creditrisk,recoverabilityofassets,andpeople’stime.8

Videoresource:Watchthisvideoforinsightsonusingtechnologytocollect,analyseanduse

datatocreateandcommunicatesustainability-relatedinformation(SawandChengn.d.).

EXAMPLEF:ConnectingthedataproducedbydifferentfunctionalteamstoidentifySRROs

CompanyF,anSMEintheagriculturesector,needstoperformaclimate-relatedscenarioanalysistoidentifyitsclimate-relatedrisksintheshort,mediumandlongterm,andto

identifypotentialmitigations.Thecompany’sowner-managerengagedanSMPtowork

togetherwithitsfinance,farmoperations,engineeringandsalesfunctionstocompletethetask.

TheSMPworkstogetherwiththevariousfunctionstoidentifythewaysinwhichtheSME’sfinancialperformancecouldbeaffectedbyclimate,suchastheimpactofchangesin

rainfall,sunshineandtemperatureon:

ntheexpectedtotalquantityproducedbythefarms,andsotheyield

nthequantityandassociatedcostsoffertiliser

ntheirrigationandflood-preventionsystem,and

ntheexpectedeffectsonthedemandforandpricesofthefarm’sagricultureproduce,andhencetheeffectsonrevenue.

TheSMPconnectsthevariousfunctionsandexplainsboththesustainability-relatedand

financialdatathateachfunctionneedstosupply,settingoutthedependenciesofeach

functionforcompletingthetask.TheSMPtransformsthedatasuppliedbytherespective

functionsintousableinputsfortheclimate-relatedscenarioanalysistoproduceinformationforinternaldecision-making.

AssessingthepotentialeffectsofSRROs

couldbecomeaniterativeprocessinvolving

severalfunctionsandvariousdata.Collaborate

withotherfunctionstobetterappreciateyour

dependenciesandimpactsonrelatedresourcesandrelationships,therebyminimisingblindspots.

8Thisarticle,

‘MakingInformationConnectionsforSustainableValueCreation

’(Machadon.d.),furtherexplorestheimportanceofconnectivityandexamplesofapplyingthevariousaspectsofconnectivityinpractice.

SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP2:ASSESSINGWHETHERSRROSCOULDREASONABLYBEEXPECTEDTOAFFECTTHEORGANISATION’SPROSPECTS

Justascross-functionalteamswouldbemosteffectiveinidentifyingSRROs,across-

functionalteamisalsoimportantinassessingthepotentialeffectsofanSRROonthe

organisation’sfuturecashflows,accesstofinanceorcostofcapital.Organisationsshouldavoidhavingonefunctionworkinginasilowhenassessingthepotentialeffectsofan

SRRO.Collaborationamongfunctionsenablesabetterappreciationoftheorganisation’sdependenciesonrelatedresourcesandrelationships,andtheorganisation’simpactsonthem,therebyminimisingblindspots.

Forexample,thefinancefunctionisneededtoassessthefinancialeffectsofanSRRO,

whileotherfunctionsmayassessothereffectsontheoperation,onemployees’well-being,

onsociety,andonenvironmentalpollutionorpreservation,tonameafew.Importantly,this

processalsoidentifiesthekindofinformationthatexplainstheSRRO,thecurrentsituation,theapproachandprogresstowardsmanagingtheSRRO,whichmayinfluenceusers’decisionsinallocatingresources.

EstimatingthefinancialorothereffectsintroducedbyanSRROintheshort,mediumorlong

termrequirestheuseofanothersetofassumptionsandskills.Anorganisationshouldknowbynowwhetherithastheskillstoperformthequantitativeassessment.Organisationsthatneed

toperformthisassessmentfrequentlymayseethebenefitofacquiringtheseskillsorupskillingexistingstaff.Conversely,organisationsthatperformthisassessmentinfrequentlymay

considerengagingtheservicesofexternalconsultantstoassesswhetheranySRROscould

reasonablybeexpectedtoaffecttheorganisation’sfuturecashflows,accesstofinanceorcostofcapital.Section7.3.6ofthe

Guide

providesguidanceonwhentoacquireoroutsourcetheskillstoperformaprocedure.

EXAMPLEG:Usingcross-functionalteamstoassessthemultifacetedeffectsofaclimate-relatedrisk

CompanyGusesalotofwaterinitsproductionactivities.Theavailabilityofwater

inLocationGsignificantlyaffectsitsabilitytocontinueoperating.Thelocalauthority

responsibleforwaterinLocationGexpectswaterscarcityinthefuture.CompanyGhas

observedthatitisusingwaterfromthesamesourceasthelocalcommunityandother

businesses.Thisscenarioalsoinfluencesthelocalcommunity’sperceptionofthecompany,andthisaffectsCompanyG’ssociallicencetooperate.

Thecompanycurrentlymeasuresitswateruseandtheamountofwateritreusesinits

activitiesandbenchmarksthedataagainstthelocalauthority’speriodicreportonwater

consumptionandquality.CompanyGhasbroughttogetheritsproductdesign,engineering,marketingandproductionfunctionsto:

nimprovethewaterefficiencyinitsproductionactivities,sothatitcanreduceitsfutureuseofwaterfromthesource

nimprovetherecyclingofwaterandreducetheamountofwastewaterdischarge

ntreatwastewaterbeforedischargetoavoidpollutingnaturalwatersources,and

nassessthefeasibilityofrainwaterharvesting(analternativewatersource).

Thecompanyquantifiesthepotentialwatersavings,theinvestmentsintonewequipmentandprocessestorealisetheexpectedwatersavingsandtheeffectsonitsfuturefinancialperformance,financialpositionsandcashflows.

EXAMPLEH:Usingcross-functionalteamstoidentifyandassessthepotentialeffectsofSRROs

ThesustainabilityteamofCompanyHhasidentifiedclimate-relatedphysicalrisksin

severallocationswherethecompanyoperates.Theoperationteamsinthoselocations,

whowerenotconsultedduringtheassessment,havechallengedthefindings.Inaddition,thesustainabilityteamdidnothavetheexpertisetoassessthefinancialeffectsonthe

company’sassetsintheaffectedlocationsanditsfuturefinancialperformance.

Thereafter,across-functionalteamcomprisingexpertsfromthesustainability,operation

andfinanceteamswasformedtorevisetheassessmentmodelandforecastpotential

outcomesfromvariousscenarios.Thenewmodelverifiedthephysicalrisksthatwere

identifiedinitiallyandproducedinformationforinternaldecision-makingandfordisclosure.

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SUSTAINABILTYREPORTING–RISKANDMATERIALITY|STEP2:ASSESSINGWHETHERSRROSCOULDREASONABLYBEEXPECTEDTOAFFECTTHEORGANISATION’SPROSPECTS

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EXAMPLEI:Quantifyingthepotentialeffectsofaclimate-relatedtransitionrisk

Theneedtooutsourcespecialisedtasks,inparticularamonglesser-resourcedorganisationssuchasSMEs,presentsanopportunityforSMPstofillthegapandbroadentheirservice

CompanyB(fromExampleB)engagedthesupportofexpertstoquantifytheeffectsof

CBAMonagroupofborrowersintheshort,mediumandlongterm,andtheirabilitytorepayCompanyBfortheamountsowed.Theresultofthisquantitativeassessmentenabledthe

companytoidentifyasignificantshiftinthecreditriskofthegroupofborrowerswhichaltereditsexposuretoclimate-relatedtransitionriskinitsvaluechain.

ThisexerciseenabledCompanyBtotakeactivestepstomanagetheriskandthepotentialfinancialeffectsarisingfromthisrisk.

offeringsbeyondconventionalaccounting,taxorauditandassuranceservices.9ExampleCdemonstratesonepossibility.TherearemanyroutesSMPscantake.10SMPswouldneedtoupskillanddemonstratethattheycancrediblyundertakethetask.

InExampleG,thelocalcommunityisanimportantstakeholderintheorganisation’sbusiness.

Therefore,engagementswithrepresentativesofthelocalcommunitycouldhelpvalidatethe

water-relatedorotherrisksthattheorganisationhasidentified.Engagingwithstakeholders

whopossessagoodunderstandingoftherelevantsustainabilitytopicsandtheorganisation’sbusinesswouldsupporttheorganisationinvalidatingitsSRROsandindeterminingthekind

ofinformationthatwouldbeusefultotheidentifiedstakeholders.Anorganisationmayusea

Videoresource:Watchthisvideoforinsightsonenablingyourpeopletoengagewith

sustainability(Machadoetal.n.d.).

combinationofsurveysandinterviewsorworkshopstoengagewithstakeholders,allowingtheorganisationtounderstandthecontext,lookdeeperintotheissuesaroundtheSRRO,andtakeexpertviewsintoconsideration.11Box3.5intheGuideprovidesfurtherguidanceonvalidatingSRROswithstakeholders.

Atthispoint,it’simportanttotakeastepbacktoassesswhethertheorganisationhasidentifiedandprioritisedtheSRROsthatcouldreasonablybeexpectedtoaffectitsprospects.

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‘AccountantsandSMEsCreatingaSustainableWorld:Stories

’(Zaronina-Kirillova2021)offersacollectionofstoriesfromabroadrangeofsmallbusinesses,includingSMPs,thathavebeenthroughsustainabletransformationthemselves.Theyseesustainabilityactionasanopportunityandexplainitspracticalbenefits.

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‘AccountantsattheHeartofSMEGrowthandResilience

’(ACCA2024)offersreal-worldexamplesandapracticalt