AG419 Week 5 Lecture 5 - Sustainable Development and Climate Related Risks QUESTIONS AND ANSWERS

What is the aim of the FERMA Sustainability Committee? Encouraging businesses to think long-term value creation and frame decisions in terms of financial, as well as environmental and social impacts What does COSO say about uncertain social or environmental events? They can cause significant negative impact on the firm's business but also includes the opportunity that may be available to an organisation because of changing social or environmental factors What are Environmental, Social and Governmental (ESG) risks and/or opportunities that may impact an entity commonly referred to as? Sustainability, non-financial or extra-financial risks (COSO) How many UN Sustainable Development Goals (SDGs) are there? There are 17 complex, interconnected problems When are they to be achieved by? 2030 Name the 17 SDGs 1. No poverty 2. Zero hunger 3. Good health and wellbeing 4. Quality education 5. Gender equality 6. Clean water and sanitation 7. Affordable and clean energy 8. Decent work and economic growth 9. Industry, innovation, and infrastructure 10. Reduced inequalities 11. Sustainable cities and communities 12. Responsible consumption and production 13. Climate action 14. Life below water 15. Life on land 16. Peace, justice, and strong institutions 17. Partnerships for the goals According to Bebbington and Unerman (2018, p.8) why does the SDG framework recognise that government action alone cannot achieve the SDG targets? It will require concerted action across governments, public and private sector organisations, civil society and individual citizens. What 4 themes are the goals assembled around? 1. Planetary boundaries 2. Safe and just operating space 3. An energetic society 4. Green competition What are planetary boundaries? The climate, land, energy and water nexus What is a safe and just operating space? Safe and just operating space lies between the environmental ceiling and social foundation What is an energetic society? Related to models of governance which include more actors and multiple initiatives each of which have their own logics What is green competition? Which acknowledges the role of the markets and tones What does Sachs (2012, p.2207) say about us being in "new times" "human activity is pushing crucial global ecosystem functions past a dangerous threshold, beyond which the earth might well encounter abrupt, highly non-linear, and potentially devastating outcomes for human wellbeing and life in general" What does Bebbington and Unerman (2018, p.7) say about this? Inaction is not an option. What are the 3 roles of accounting? 1. Measurement 2. Reporting 3. Performance management Where does the subject of the research emerge from? Problems being faced (rather than the interests of accounting scholars) What is the second hallmark of sustainability science? Those affected by problems are full partners in the research (i.e., the work is trans-disciplinary) What 3 characteristics mark the role of accountants in this context? 1. Refocusing on risk mitigation and adaption, economic fairness 2. Putting ecological responsibility back into the heart of analysis 3. Renewed focus on the responsibilities of higher education What have the SDGs led to a need for? New forms of risk assessment and accounting interventions What has PwC developed? SDG Selector and SDG Navigator How has BT (2016) incorporated SDGs into their GRI Index? They have "used the SDG Compass tool to map our response and increase transparency" - relevant SDG(s) for each item in the GRI index What does GRI stand for? Global Reporting Initiative Which 8 of the 17 SDGs did the International Federation of Accounting (IFAC) identify that accounting could contribute to the most? Goal 4 Goal 5 Goal 8 Goal 9 Goal 12 Goal 13 Goal 16 Goal 17 How many members does IFAC have? 3 million What 3 things has the accounting profession been quick to comprehend about SDGs? 1. Their importance and potential 2. Substantial engagement by business with the SDGs 3. The role accounting profession can play in pursuing meaningful action within the SDG framework What 3 Ds must be considered relating to climate change?