ACCA proposals on data and climate metrics set out how policy makers can support SMEs in a successful transition to a sustainable future
Businesses in the UK deserves clear and consistent support from policymakers and regulators to meet rising sustainability data and reporting requirements.
The world’s leading global accountancy body is making a series of recommendations which will help the UK’s small and medium-sized enterprises (SMEs) comply with the growing administrative burden generated by sustainability data demands. The proposals – informed by a roundtable organised by ACCA (the Association of Chartered Certified Accountants) and banking and finance industry membership organisation, UK Finance – are a unique opportunity for the UK to lead in tackling the global climate challenge.
Key among seven suggestions (see list below) is for standardisation and consistency in sustainability reporting. Jessica Bingham, Head of Regional Policy Development (EEMA & UK), ACCA, said: ‘This report highlights how SMEs are responding to increasing sustainability data requirements. Currently SME engagement is reactive. Policymakers and regulators need to take account of the diversity of SME size, structure and activities, and the challenges posed by fragmented requests and lack of standardisation.’
Produced by consulting with SMEs and financial institutions at a roundtable during London Climate Action Week, ACCA’s report Measure what matters sets out the practical solutions that policy makers and regulators can enact to solve the challenges SMEs face in collecting and reporting on sustainability and climate metrics.
Investors and institutions are integrating sustainability data from SMEs into their decision making, yet SMES often lack the resources and tools to meet the transparency and disclosure asks driven by supply-chain demands.
Jennifer Tankard, Director, Commercial Finance, UK Finance, said: ‘Small businesses can benefit from collecting and understanding their sustainability data. It can help them assess and reduce their carbon emissions reducing business costs. Standardisation and consistency in sustainability reporting would boost businesses capability to collect and report key metrics.’
Bingham added: ‘Sustainability data requests are triggered more often by procurement demands than proactive compliance or internal strategy. Requests from large customers and finance providers lack standardisation and this exacerbates the burden on SMEs complicating their ability to respond effectively. Our recommendations offer a way to end the confusion and improve climate metrics.’
ACCA recommendations
- Standardisation and consistency in sustainability reporting
- Sector and size considerations
- Incentives and standardisation
- The adoption of carbon intensity metrics and open standards
- Dissemination of tools to trusted advisers
- Support initiatives to create effective feedback loops
- Guidance and clarification
Read Measure what matters
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About ACCA
We are ACCA (the Association of Chartered Certified Accountants), the only truly global professional accountancy body. Since we were founded in 1904, we’ve been breaking down barriers to the accountancy profession. Today we proudly support a diverse community of over 266,100 members and 546,500 future members in 179 countries.
We’re redefining accountancy. Our cutting-edge qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to lead and drive sustainable value in organisations and economies worldwide.
Guided by our purpose and values, we’re leading the accountancy profession for a changed world. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that focuses on people, planet and prosperity to create value for all.
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