AICPA® & CIMA®: Thought Leadership

Driving sustainable progress

Paul Turner, FCMA, CGMA, Vice President – UK and Ireland at AICPA® & CIMA®, together as the Association of International Certified Professional Accountants, looks at how organisations can drive corporate sustainability amidst setbacks and potential delays to regulation.

In recent years, corporate sustainability has evolved from being a niche concern to being a core tenet of business strategy to meet investor pressure, consumer demand and regulatory requirements, and to attract talent. Much like digital transformation, this requires organisations to rethink their business model, strategy and daily operations as they pursue sustainable value creation and drive long-term performance.

However, recent developments in the EU and the US, including a proposal to delay the implementation of certain key EU sustainability reporting regulations by two years until 2028 and federal rollbacks on sustainability initiatives under the new US administration, could have significant implications for the momentum of global sustainability efforts. Some would even argue that these decisions are a significant setback, which could not only hinder further progress but also undermine the strides made in corporate sustainability over the past decade. 

Does this mean the end of corporate sustainability? Absolutely not. A sustainability slowdown? Maybe.  

Paul Turner
FCMA, CGMA, Regional Vice President of AICPA® & CIMA®​​​​​​​

Beyond regulatory compliance and short-term gains

Corporate sustainability encompasses not only regulatory compliance but, perhaps most importantly, the pursuit of sustainable business performance, long-term value creation, innovation and ethical governance. In the modern business world, these are essential attributes to maintaining a competitive advantage, building trust with stakeholders, and ensuring the long-term viability of the organisation. 

To effectively navigate the challenges posed by recent developments – and whatever comes next – and continue to drive meaningful progress in corporate sustainability, organisations must focus on:  

  • Developing a sustainability strategy deeply rooted in their core purpose: Organisations need to clearly define what sustainability means for them and how it aligns with their mission and values. A purpose-driven strategy ensures that sustainability efforts are authentic and resonate with both internal and external stakeholders. 
  • Building governance, data management and reporting capabilities: To embed their sustainability efforts within the business model and decision-making processes, organisations need to create strong governance structures to oversee sustainability initiatives, ensure accurate data collection and analysis, and maintain transparent reporting practices. This will help to ensure that sustainability efforts are effective, measurable and credible, enabling organisations to direct and adjust efforts based on performance. 
  • Capturing business value: Identifying and capturing the business value of sustainability efforts is crucial, including recognising the financial, operational and reputational benefits that can arise. By demonstrating both the tangible and intangible value of their sustainability efforts, organisations can support further long-term investments and commitment to these initiatives.  
  • ngaging investors and other stakeholders: Organisations need to develop a well-defined point of view about what is most material to the business and connect sustainability efforts to their purpose, strategy and impacts on society and the environment. They also need to communicate with their investors and other stakeholders around these initiatives, setting clear targets and providing robust measurement of performance to enhance transparency, ensure accountability, and foster trust.

How can the finance team help?

Finance and accounting professionals are at the heart of any organisation, at the crossroads between finance, business strategy and management. Their role is to provide, analyse, use and communicate decision-relevant financial and non-financial information to enable organisations to seize opportunities and mitigate risks. As such, they have a key role to play in supporting their organisations on their corporate sustainability journey. This includes:  

  • Understanding sustainability standards and reporting requirements: The finance team will need to understand the rules and regulations surrounding their organisation’s sustainability efforts based on the geographical footprint of their business operations. From there, they can identify relevant reporting frameworks and sustainability-related metrics, and the connection between the management of sustainability-related risks and opportunities and the organisation’s financial performance and prospects. The finance team can also map out processes for compliance, establishing adequate internal controls and reporting, and knowing how and when the organisation will publicly disclose the information. 
  • Performing a materiality assessment: The finance team will need to support the process of identifying the sustainability-related risks and opportunities for their organisation. That will require a materiality assessment and sector-specific research. To do this, they will need to engage, amongst other stakeholders, with investors, executive leadership, customers, third-party vendors, employees and the communities in which the organisation operates. This research will shed light on how organisational resources, relationships and performance constitute the dynamic ecosystem of the organisation, allowing the finance team to carefully consider each aspect as they advise on the connection between sustainability efforts and financial performance.  
  • Incorporating sustainability into the organisation’s business model: Reporting requirements will shape an organisation’s communications about how it has integrated sustainability-related opportunities and risks into its business model. The finance team will play a significant role in embedding these considerations into strategic planning, operational processes, decision-making and resource allocation to ensure alignment with business objectives and drive long-term success.


​​​​​​​While I cannot predict the future, the resilience of sustainability efforts driven by market, societal and national forces would suggest that organisations truly committed to sustainability will continue their efforts because it is intrinsically linked to value creation, even in a fast-changing regulatory environment. The key challenge for organisations and their finance teams is to truly embed these efforts into their business models for long-term organisational success, and to effectively measure the outcomes.