ACCA Responds to the Stern report

While Sir Nicholas Stern's report shows "what counts" for the global economy, accountants must rise to the challenge of "who counts" the ongoing costs of environmental degradation.

Blewitt commented: 'The contribution of the accountancy profession to date has been significant, but more must be done. Despite the government's unfortunate rejection of the Operating & Financial Review, a reasonably robust model for the Business Review still exists and can be used for mandatory disclosure of carbon emissions.'

The letter also includes four of practical suggestions for the future:
Greater emphasis on the true sustainability of reported profit levels will gain more general market acceptance if accountants can improve our ability to quantify, internalise and report on the financial consequences of social and environmental impacts

While ACCA can advise on how an enhanced range of green taxes can be formulated, transparency on where the money goes must be integral to this approach. People need to be reassured that their green taxes are ameliorating "catastrophic climate change"

Formal targets can be set for "greening" the supply chains of public sector organisations, building on the work already done by the government itself in this area

Finally, the government must propose robust models for personal carbon trading markets, so as to avoid any repeat of the privatisation voucher-type scandals seen after the collapse of the Soviet Union.