PwC says finance directors have "no idea" on environment
06 Oct 2009, Rachael Singh, AccountancyAge
http://www.accountancyage.com/aa/news/1776547/pwc-finance-directors-idea-environment
PricewaterhouseCoooper's global head of sustainability says he is "surprised " environmental issues are not on the finance director's radar.
Malcolm Preston, the recently appointed global head of sustainability for PwC, said he was surprised some finance directors in large companies had "no idea" what is going on when it comes to environmental strategies, especially as it is on the minds of chief execs.
"This is about the finance function taking ownership of it," he said.
Preston explains under the Carbon Reduction Commitment, legislation which will force companies to pay for its emissions, the Environment Agency will publish a league table of how well a company is managing its carbon emissions.
He added: "Investors will be interested in that information."
"Those that take it less seriously are going to be left behind," he said.
Environmental reporting should come under the finance function including the strategy of the business going forward.
He also mentioned he was stunned that almost three quarters of large businesses do not have specific software in place to report on green house gases.
"In about two years time, not having sophisticated software for green house gas reporting will be like a company not having an accounting system," he said.
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Visitor comments
FD?s should take ownership on carbon emissions
I couldn?t agree more with Malcolm that the finance function should take responsibility for its organisation?s carbon footprint. At Access, we launched Accounting for Carbon Emission (ACE) back in 2008, as part of our accounts package Access Dimensions. Our own FD has been monitoring our emissions ever since then. It makes total sense to see finance report on this, especially as it?s now as easy as extracting financial reports.
However, I think it?s important to note the whole issue of reducing a company?s carbon footprint isn?t the responsibility of the FD in isolation - he or she needs the backing and input from the Board. Whilst the FD can monitor and track carbon impact, it falls to the Board as a whole to lead the company towards lowering their emissions. That said, the finance function has a huge role to play.
It?s also interesting to see developments on the legislation front. As Malcolm mentions, the Carbon Reduction Commitment legislation will force companies to pay for their emissions. In addition to the CRC legislation the Government also published guidelines just last week to help businesses report on their footprint, including guidelines for the smaller business too (see blog of 1st October - www.theaccessgroup.com/blog.aspx). Whilst this is not mandatory yet, it?s interesting to see the stance the Government is taking and their reference to the finance function in tackling this issue. There is a growing tide of thought, which believes the FD is best placed to take ownership; it?s good to see companies such as PwC taking this stance too ? FDs also need to consider their position in this.
Posted by: Kevin Misselbrook, Customer Services Director, Access UK , 06 Oct 2009 | 00:00