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PROFESSIONAL

ACCOUNTANTS AT THE

HEART OF SUSTAINABLE

ORGANISATIONS

September 2021

About ACCA

ACCA (the Association of Chartered Certified Accountants) is the global

professional body for professional accountants.

We’re a thriving global community of 233,000 members and 536,000 future

members based in 178 countries and regions, who work across a wide range of

sectors and industries. We uphold the highest professional and ethical values.

We offer everyone everywhere the opportunity to experience a rewarding

career in accountancy, finance and management. Our qualifications and learning

opportunities develop strategic business leaders, forward-thinking professionals

with the financial, business and digital expertise essential for the creation of

sustainable organisations and flourishing societies.

Since 1904, being a force for public good has been embedded in our purpose.

In December 2020, we made commitments to the UN Sustainable Development

Goals which we are measuring and will report on in our annual integrated report.

We believe that accountancy is a cornerstone profession of society and is vital

helping economies, organisations and individuals to grow and prosper. It does

this by creating robust trusted financial and business management, combating

corruption, ensuring organisations are managed ethically, driving sustainability,

and providing rewarding career opportunities.

And through our cutting-edge research, we lead the profession by answering

today’s questions and preparing for the future. We’re a not-for-profit organisation.

Find out more at accaglobal.com

About this report:

This report explores the future of the accountancy profession,

examining the drivers of change shaping sustainable

organisations as we look ahead, and the next decade of

work for finance professionals as well as the capabilities and

the skills most prized.

Building on ACCA’s global research programme over the

past two years it also includes a survey of over two thousand

responses of finance professionals further enriched by a wide

ranging and extensive engagement programme of roundtables,

interviews and focus groups across the globe which explored

further the drivers of change, as well as informing the core

capabilities needed in the future for professional accountants in

whatever role they perform.

In the decade ahead, this is the professional accountant playing

an integral role at the heart of sustainable organisations of the

future as the sustainable business and finance professional.

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PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONS©2021AssociationofCharteredCertifiedAccountantsSeptember2021AboutACCAACCA(theAssociationofCharteredCertifiedAccountants)istheglobalprofessionalbodyforprofessionalaccountants.We’reathrivingglobalcommunityof233,000membersand536,000futuremembersbasedin178countriesandregions,whoworkacrossawiderangeofsectorsandindustries.Weupholdthehighestprofessionalandethicalvalues.Weoffereveryoneeverywheretheopportunitytoexperiencearewardingcareerinaccountancy,financeandmanagement.Ourqualificationsandlearningopportunitiesdevelopstrategicbusinessleaders,forward-thinkingprofessionalswiththefinancial,businessanddigitalexpertiseessentialforthecreationofsustainableorganisationsandflourishingsocieties.Since1904,beingaforceforpublicgoodhasbeenembeddedinourpurpose.InDecember2020,wemadecommitmentstotheUNSustainableDevelopmentGoalswhichwearemeasuringandwillreportoninourannualintegratedreport.Webelievethataccountancyisacornerstoneprofessionofsocietyandisvitalhelpingeconomies,organisationsandindividualstogrowandprosper.Itdoesthisbycreatingrobusttrustedfinancialandbusinessmanagement,combatingcorruption,ensuringorganisationsaremanagedethically,drivingsustainability,andprovidingrewardingcareeropportunities.Andthroughourcutting-edgeresearch,weleadtheprofessionbyansweringtoday’squestionsandpreparingforthefuture.We’reanot-for-profitorganisation.Findoutmoreataccaglobal.comAboutthisreport:Thisreportexploresthefutureoftheaccountancyprofession,examiningthedriversofchangeshapingsustainableorganisationsaswelookahead,andthenextdecadeofworkforfinanceprofessionalsaswellasthecapabilitiesandtheskillsmostprized.BuildingonACCA’sglobalresearchprogrammeoverthepasttwoyearsitalsoincludesasurveyofovertwothousandresponsesoffinanceprofessionalsfurtherenrichedbyawiderangingandextensiveengagementprogrammeofroundtables,interviewsandfocusgroupsacrosstheglobewhichexploredfurtherthedriversofchange,aswellasinformingthecorecapabilitiesneededinthefutureforprofessionalaccountantsinwhateverroletheyperform.Inthedecadeahead,thisistheprofessionalaccountantplayinganintegralroleattheheartofsustainableorganisationsofthefutureasthesustainablebusinessandfinanceprofessional.ACCAforewordThisisthedecadeoftheprofessionalaccountantasthesustainablebusinessandfinanceprofessional,withavitalroletoplayindrivingpositivechange–it’sanopportunitytheprofessionhastograsp.HelenBrandChiefexecutive,ACCATheamountofchangewe’reseeingacrossglobalmarketsinthewakeoftheCovid-19crisisisunprecedented,andmanyofthetrendsthatwerealreadydevelopingpriortotheonsetofthepandemicareaccelerating.Thisnewresearchidentifiesfivedynamicareasofchangeoverthenextdecadethatwillaffecthoworganisations–fromSMEstolargecorporatestopublicsectorbodies–seektodeliverlongterm,sustainablevalue.Allofthisiscompoundedbytheverysignificantchallengespresentedbythegrowingenvironmentalemergency.Thesechangeswillindeliblyimpactandshapetheroleoftheprofessionalaccountantasthesustainablebusinessandfinanceprofessionalastheyhelporganisationsnavigatethroughthesechallenges.TheCovid-19crisishasalsoputaspotlightonsystemicsocietalchallengesacrosstheworldwhichdemandnewthinkingandrecasttheroleofbusinesswithinsociety.Organisationsofallsizesmustalsocontinuetograpplewithacceleratingtechnologicalandextensiveworkforcechange.PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFOREWORDYetthesedevelopmentsalsopresentbrilliantopportunitiesfortheaccountancyprofessionoverthecomingyears.Afuturepathaheadthatreinforcesandwidenstheroleofprofessionalaccountants,andopensnewdoors.Sustainablebusinessandfinanceprofessionalswillbeessentialinhelpingorganisationsinallsectorscreatelongtermvaluethatbenefitsallstakeholders,playingtheirpartinbuildingamoreprosperousfutureforwidersociety.Fromdrivinggoodbusinessdecision-making,asbusinessleaders,partnersandanalysts,andhelpingtoexecutebetterstrategiesandactivitiesthatdelivermoresustainablevalue,throughtochampioningtheESGagenda.Fromemergingpracticesinauditthathelpstrengthentheintegrityofbusinessperformance,throughtoevolvingassurancepracticesthatsupportorganisationsingrapplingwiththechallengesofclimatechange.Theroleofthesustainablebusinessandfinanceprofessionalinallorganisationsofthefuturewillbevital.Andasthisresearchshows,tocapitaliseonnewopportunities,they’llneedtobeequippedwithanumberofcoreemergingcapabilities–must-haveskillsandbehavioursthatareessentialacrossallrolesandatanycareerstageinthefuturewhichunderpinprofessionalcompetenceandeffectiveperformance.4GlobalengagementIndevelopingthisresearchandidentifyingthedriversofchangeandcorecapabilitiesneededforthefutureACCAundertookanextensiveglobalengagementprocessstartinginOctober2020.Thisincludedroundtables,focusgroups,consultationswithACCAexpertgroupsandinterviewsheldacrosstheworld.Theseactivitiesweresupplementedbyaglobalmembersurveyandqualitativeresearch.Wewouldliketothankeveryonefortheirparticipationintheseengagementsthathavesupportedtheproductionofthisreport.Roundtable,focusgroupandinterviewlocations:NorthAmerica(USandCanada)MESA(MiddleEastandSouthAsia)WesternEuropeIrelandUKSriLankaAfricaCentral&EasternEuropeChinaASEANIndiaSingaporeMalaysiaNigeriaPakistanTurkeyVietnamACCATechnicalexpertgroups:AccountantsforBusinessGlobalForumandTechnologyGlobalForum(jointsession)SustainabilityGlobalForumPublicSectorGlobalForumSMEGlobalForumExpertgroup–auditandtaxExpertgroup–performancemanagementExpertgroup–financialandriskmanagementExpertgroup–corporateandbusinessreportingTalentandHRleaderLeadersoftomorrowroundtable5Itisn’tthefutureweperhapsexpectedwhenwelastwroteareportenvisioningwhatlayaheadfortheaccountancyprofessionin2016.Whocouldhavepredictedthis?Notmanydid,intruth.AstheCovid-19pandemichasragedacrosstheplanet,livelihoodshavebeenturnedupsidedownandgovernmentshavebeenrocked.It’struetherehavebeensomewinnersbutmostlywehavecollectivelylost;estimatesabound–intrillionsofdollars–ofthefinancialimpactfromthisunprecedentedeconomiccrisis.Beyondthemoney,thetruesocialandhealthfalloutisincalculable.Asalways,thepooresthavebeenworsthit.PrefaceButperhapsnotallislost.TheCovid-19(SARS-CoV-2)crisishasremindedusoftheroleofbusinessinsociety:organisationslargeandsmallwillplayanessentialroleinforgingabetterworldforthelongertermbeyondtheravagesofthepandemic.Thereisagrowingappetitetoaddressprevailingsocio-economicinjusticesexacerbatedbythecrisis:growingincomedisparity,unequalaccesstoemploymentopportunities;andinadequateprovisionofpublicservices,tonameafew.Yetwhilethelessonsfromthepandemicareprofoundandwideranging,itsimpactsandconsequencesaresimplydwarfedbythemenacesofanevenworsehumanitariancrisisonthehorizon:climatechange.AstheG7leadersmeetintheUKin2021,andwiththeUNClimatechange(COP26)scheduledforlaterthisyear,climatechangeisacalltoarmslikenootherasgovernments,businesses,institutionalinvestorsandassetmanagersacrosstheworldracetoreducecarbonemissions.Inthefaceofthisloomingenvironmentalemergency,disruptionisallaround,marketsareshifting,workplacesaretransforming,stakeholderactivismisincreasing,andcapitalisincreasinglydrawntoorganisationsthataretrusted,ethical,andenvironmentallyfriendly;organisationsthatseektocreatelong-termvalueforall,notjustfortheselectedfew.Butwhathasthistodowiththefutureofaccountancy?PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSPREFACEORGANISATIONSLARGEANDSMALLWILLPLAYANESSENTIALROLEINFORGINGABETTERWORLDFORTHELONGERTERMBEYONDTHERAVAGESOFTHEPANDEMIC.6PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSTHEHUMANTOUCHINTHEDECADEAHEADOneofthemoreacuteobservationsfromtheCovid-19crisisisthatthoseorganisationsthathadinvestedindigitaltransformationbeforetheonsetoftheglobalpandemicwerebetterplacedtoweathertheeconomicoutfallandrespond.Technologyhasbeenkeytohelpingorganisationsexecutetheircrisismanagementresponsesandgrapplewithanunfoldingrisklandscape.Thecrisisthenfurtheracceleratedtechnologyadoptionasbusinesseslargeandsmallrapidlyreassessedtheirvaluechains,explorednewchannelstomarket,fast-trackedandswitchednewservicesorproductofferingsandreconfiguredtheiroperatingmodels.Thisdigitalchangeisnowlayingthefoundationsforthefutureaswelooktowardsthenextdecade.Newtechnologieswillchangework.ThehumantouchinthedecadeaheadYetthetrueimpactofthisdisruptionismostglaringlyobviousnotthroughthelensoftechnologytransformation,butthroughthenarrativeofworkforcechange.Thepandemichasturnedonitsheadmanyprevailingworkorthodoxiesandraisedfundamentalquestionsaboutthepurposeofwork,howworkgetsdone,whereitgetsdone,andwhodoesit.It’sunleashedtheartofthepossibleforremoteworking,virtualcollaborationandworkbeyondthe9–5,withproductivitymeasuressoaringinsomecases…yetemployeeanxietyandmentalhealthchallengesareatanall-timehigh,workingdaysarelonger,jobsecurityconcernsareescalatinganddetractorsofthe‘newnormal’claiminnovationhasbeenstifled.Theparadoxisthis:inaworldofworksoinnatelytechnologyled,thepandemichasexposedthatworkremainsaboveallelseadeeplyhumanexperience.Thisisparticularlytrueoftheaccountancyprofessionaswelooktowardsthenextdecade.Theworkchangewewillseeforaccountantsisn’tjustatransitionto‘hybridwork’,aquestionofredesigningofficespacesorfinanceteamswithdistributedfootprints.It’smuchmorefundamental.Thisisaboutarenewedsenseofhumanconnectionandpurpose,theopportunityfortheprofessiontomakearealdifferencethatnecessitateshumanaswellasdigitalingenuity.It’sastoryofskillstransformationasjobsarere-imagined,workconstructsarechangedandcareersaredisrupted,andwheretechnologyadvanceseithercomplementhumanendeavour,orwherethecurrentlimitationsofdigitalcapabilitiesremainexposed.THEPARADOXISTHIS:INAWORLDOFWORKSOINNATELYTECHNOLOGYLED,THEPANDEMICHASEXPOSEDTHATWORKREMAINSABOVEALLELSEADEEPLYHUMANEXPERIENCE.7REPORTVALUE:HelpingorganisationsreportvalueexternallyinmeaningfulandtransparentwaysCREATEVALUE:HelpingorganisationsexecutetherightbusinessdecisionstocreatesustainablevaluePROTECTVALUE:HelpingorganisationsestablishandexecuteprocessesthatprotectsustainablevalueThe2020sinaccountancyareadecadeinwhichtheaccountancyprofessionisintegraltobuildingsustainableorganisationsthatgeneratebothfinancialreturnsandlong-termvalueforsociety.Thisisthedecadeoftheprofessionalaccountantasthesustainablebusinessandfinanceprofessional.PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSTHESUSTAINABLEBUSINESSANDFINANCEPROFESSIONALThey’llbeessentialtodrivingpositivebusinesschangeandsupportingeconomiesandorganisationsacrosstheworldtobuildbackbetter.Fromensuringthestronggovernanceandsustainablefinancialdevelopmentoforganisations,throughtotakingaleadingroleincriticalchallengesfacingbusinessestoday,suchasrespondingeffectivelytotheimperativesofclimatechangeorchampioningthenaturalcapitalandenvironmental,socialandgovernance(ESG)agenda,they’llusetheirskills,ethicsandprofessionaljudgement,actinginthepublicinteresttohelpcreatenewvalueopportunitiesfororganisationsinallsectorsacrosstheworld.Itpresentsanopportunitytomakereal,impactfulchangeattheheartofsustainableorganisationsbyhelpingbusinessestaketherightdecisionstocreatelongtermvalue,aswellasensuringthatvalueisprotectedandexternallyreportedinmeaningfulways.Thisisthesustainablebusinessandfinanceprofessionalbringingtobeartheirtechnicalmasteryanddigitalknow-howtosupportorganisationstodeliverlongtermsustainablesocietalvalue.Thedecadeaheadpresentsbrilliantemergingopportunitiesforthesustainablebusinessandfinanceprofessionalattheheartofsustainableorganisations.IntroducingthesustainablebusinessandfinanceprofessionalTHISISTHEDECADEOFTHEPROFESSIONALACCOUNTANTASTHESUSTAINABLEBUSINESSANDFINANCEPROFESSIONAL.CAREERZONE1:CAREERZONE2:CAREERZONE3:CAREERZONE4:TRANSFORMATIONDRIVERSENTERPRISEANALYSTSASSURANCEPROVIDERSSTAKEHOLDERREPORTERS8REPORTVALUE:HelpingorganisationsreportvalueexternallyinmeaningfulandtransparentwaysCREATEVALUE:HelpingorganisationsexecutetherightbusinessdecisionstocreatesustainablevaluePROTECTVALUE:HelpingorganisationsestablishandexecuteprocessesthatprotectsustainablevalueReportoverview:PART1:DriversofchangeTrendsthatareimpactingthesustainableorganisationofthefutureandtheroleofsustainablebusinessandfinanceprofessionals:1.Economy2.Environment5.Workforce4.Technology3.SocietyPART2:CorecapabilitiesThemusthaveskillsneededinallfutureroles:SustainabilityDigitalExpertiseEthicsDriveInsightCollaborationPART3:FuturecareeropportunitiesThecontributionsustainablebusinessandfinanceprofessionalswillmaketosustainableorganisationsofthefuture:CAREERZONE1:CAREERZONE2:CAREERZONE3:CAREERZONE4:TRANSFORMATIONDRIVERSENTERPRISEANALYSTSASSURANCEPROVIDERSSTAKEHOLDERREPORTERS9PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONS1.DRIVERSOFCHANGE1.DriversofchangeKeytrendsthatareimpactingthesustainableorganisationofthefutureandtheroleofsustainablebusinessandfinanceprofessionals(Figure1).101.Globalproductivityontherisebutemergingmarketsfaceachallengingdecade2.Governmenttakesabiggerrole3.Globalsupplychainsarereconfigured4.ChinaandtheUSdecouple5.Globalisationrecedes,protectionismrisesFIGURE1:Driversofchangeshapingthesustainableorganisationofthefutureandtheroleofsustainablebusinessandfinanceprofessionalsoverthenextdecade1.Economy2.Environment5.Workforce4.Technology3.SocietySUSTAINABLEORGANISATION1.Economy2.Environment5.Workforce4.Technology3.Society21.Thefutureofprofessionalworkishybrid22.Innovationandcollaborationdrivegrowth23.Careerpathstransform24.Well-beingheadstheagenda25.Continuouslearningiscentrestage6.Climateemergencyaccelerates7.Businessmodelsgocircular8.Naturalcapitalmanagementisagrowingpriority9.Taxationreformaccelerates10.ESGreframestheriskandreportingagenda11.Leadershiptrustisinthespotlight12.Inclusivitymakesbusinesssense13.Demographicshiftschangetalentstrategies14.Educationistechnologicallytransformed15.Newbusinessmodelsexpedite16.Datasphereexpands17.Cloudtransformsscalability18.Smarttechnologyaccelerates19.Cybersecurityisbigbusiness20.CollaborativetechnologychangesconnectivityClickonthetabsorarrows,tonavigatetoeachreleventchapterDRIVERSOFCHANGE11PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONS2.CORECAPABILITIESOFTHEFUTUREWeseeanumberofemergingcorecapabilitiesthatwillbeneededbythesustainablebusinessandfinanceprofessionalofthefuture.Thesecorecapabilitiesareadirectresponsetochangingorganisationalneedsinthefaceofthedriversofchangewehaveidentified,asorganisationsseektocreatesustainablelong-termvalue.2.CorecapabilitiesofthefutureTheyreflecttheskills,knowledgeandbehavioursrequiredforanACCA-qualifiedaccountanttomeetthefutureneedsanddemandsoftheprofession.Individualswillneedtobalancethesecorecapabilitiestofittheirroleandstageofcareer.ThecorecapabilitiesareattheheartofACCA’snewCareerNavigator(Figure2),whichsupportsACCAmembersinnavigatingtheirowncareerroute,enablingthemtoexplorepotentialcareerdestinations,acquirenewskillsandconnectwiththelatestjobsandtalent.THESECORECAPABILITIESAREADIRECTRESPONSETOCHANGINGORGANISATIONALNEEDSINTHEFACEOFTHEDRIVERSOFCHANGEWEHAVEIDENTIFIED,ASORGANISATIONSSEEKTOCREATESUSTAINABLELONG-TERMVALUE.12FIGURE2:ThecareernavigatorandcorecapabilitiesSustainabilityEthicsInsightExpertiseDigitalDriveCollaborationExpertiseKeycompetenciesidentified:nCorporateandbusinessreportingnTaxationnRiskmanagementnAdvisoryandconsultancynAuditandassurancenPerformancemanagementnFinancialmanagementCollaborationKeycompetenciesidentified:nEngagementnCommunicationnInclusionnInfluencenStakeholderfocusInsightKeycompetenciesidentified:nCriticalthinkingnPlanningandprojectmanagementnInnovationnBusinessacumennGovernanceandcontrolDriveKeycompetenciesidentified:nLifelonglearningnDeterminationnChangeorientationnAuthenticitynLeadershipClickonasquare,tonavigatetoeachreleventpageorchapter13PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONS3.FUTURECAREEROPPORTUNITIESOurlatestresearchidentifiesfournewemergingcareerzonesofopportunityforthesustainablebusinessandfinanceprofessionalwheretheycanmakevitalcontributionstoensureorganisationsaresustainableforthefuturethroughthetypeofjobstheyperform.3.FuturecareeropportunitiesThezonesrepresentbrilliantareasofaccountancyjobsinallsectorsandindustriesacrosstheglobe,inwhichfinanceprofessionalswillhelpcreateneworganisationalvalue,protectexistingorganisationalvalueorcommunicatethatvaluetotheoutsideworldthroughtheirreportingactivities.Thesenewjobsgowaybeyondsigningoffasetoffinancialaccountsorproducingavariancereport.They’remuchmoremultidisciplinaryandcallintoplaythebroaderskills,capabilitiesandknowledgethatcomplementfinanceandaccountancyskills.Thesefuturerolesaremuchmoredataandtechnologydriven,providingfinanceprofessionalswithpurposefuljobsandgreatcareeroptionsforthefuture(Figure3).REPORTVALUE:HelpingorganisationsreportvalueexternallyinmeaningfulandtransparentwaysCREATEVALUE:HelpingorganisationsexecutetherightbusinessdecisionstocreatesustainablevaluePROTECTVALUE:HelpingorganisationsestablishandexecuteprocessesthatprotectsustainablevalueCAREERZONE1:CAREERZONE2:CAREERZONE3:CAREERZONE4:TRANSFORMATIONDRIVERSENTERPRISEANALYSTSASSURANCEPROVIDERSSTAKEHOLDERREPORTERS14PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONS3.FUTURECAREEROPPORTUNITIESThetransformationdriverthinksahead.Therolestheyperformareessentialtodeliveringorganisationalchangetocreateandprotectlongtermsustainablevalue.Careerzone1:ThetransformationdriverThisisthesustainablebusinessandfinanceprofessionalbringingnewvisionandtransformationalcapabilitiestotheorganisationascallsgrowtobuildbackbetterandbusinesseschangetomeetgrowingESGcommitments.Theycouldbeexploringnewconsultingoradvisoryrolesinthefaceofrapidtechnologicalinnovationandbusinesschange.Theymaybemorespecificallyworkingasbusinessadvisersleadingbrilliantlyinnovativesmallerandmedium-sizedaccountancypractices(SMPs)thataretransformingtheirclientorganisations.Theycouldbeentrepreneursusingtheirfinanceandaccountancyskillstoestablishstart-upbusinessesattheheartofsustainablelocaleconomies,ortheycouldbedrivingmajorbusinesschangeinitiativesinglobalbusinessserviceoperations.Theymaybedigitalleadersseekingtointroducenewtechnologiesordriveenhanceddatacapabilitiestotransformbusinesses,ortheymayhavealreadyreachedachieffinancialofficer(CFO)role/CSuiterole,drivingorganisationalchangeaspartoftheleadershipteamacrosstheorganisation.Theymayevenbeineducationroles,helpingtransformthetalentpipelineforthefuture.Whateverroletheyperform,theirskillsandcapabilitiesareessentialtodrivingtransformationalchangeinorganisationsasacatalystforcreatinglongtermsustainablevalue.They’realwaysthinkingaheadtoimprovetheorganisationunderstandingofthefuture.Theycouldbefinancebusinesspartners,thecommercialadviserstoorganisationswhopartneracrossbusinessesusingstrongdataskillstoanalyseinvestmentcases,runthenumbersonnewchannelstomarketorhelpingdelivernewproductsorservicestomeetchangingcustomerdemands.Theymaybeperformancemanagersorfinancialanalyststransformingperformancemanagementandplanningprocessesattheheartofthesustainablebusinessofthefuture,helpingorganisationsmakecommercialandfinancialdecisionsthatincreasinglyhaveenvironmentalorsocialimplications,ordrivingmoreaccountabilityinpublicsectordecisionmaking.Theycouldbeprojectorprogrammeaccountants,broughtintosupportagileprojectteamsbyanalysingthefinancialimplicationsofmajorbusinessprogrammesasorganisationsseektoinnovateinthefaceofrapiddisruption.Theycouldbetreasuryprofessionals,usingdataskillsandadvancingtechnologiestohelpsecuretheorganisation’sfundingandhelpingmanageincreasingfinancialrisksasthebusinessworldisfurtherdisrupted.Theenterpriseanalystbringsdatatolife.Thisisthesustainablebusinessandfinanceprofessionalhelpingorganisationscreateandprotectvalueinvariousrolesusingtheirbrilliantdataandfutureinsightskills.Careerzone2:Theenterpriseanalyst15PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONS3.FUTURECAREEROPPORTUNITIESTheassuranceprovideristhesustainablebusinessandfinanceprofessionalbringingnewlevelsofgovernancetoorganisationsbyhelpingprotectandreportonvalueinthedifferentrolestheyperform.Careerzone3:TheassuranceproviderAssurers’rolesareessentialforprovidingconfidencetocapitalmarketsaswellasgivingassurancetoinvestorsandwiderstakeholdergroups.Theirrolesarecriticalfordemonstratingtotheoutsideworldthattheorganisationiswellcontrolled,ethicallyled,andattractiveforinvestmentandsecuringcapital.Rolesinthiscareerzonemayfocusonenterpriseriskmanagement,helpingbusinessesthinkaheadandunderstandthegrowingrisksthatareemergingandthreateninglonger-termbusinessperformance.Theassuranceprovidercouldbeattheforefrontofshapingforward-lookingauditpracticestomeettheassuranceneedsoftheorganisation’sstakeholdersasauditingpracticestransformthroughtechnology.Theycouldalsobemovingintotheexcitingandfast-growingareaofESGassurancetobringgreaterconfidencein,andtransparencyto,organisations’managementofESGrisksorthewaytheycapitaliseonESGopportunities.OrtheassuranceprovidermaybeplayingacriticalroleinpublicsectorauditteamstohelpbringmoreaccountabilityandtrusttogovernmentsandpublicsectororganisationsinthewakeofstretchedfinancesfromtheCovid-19crisis.Thestakeholderreportermaybeworkingincorporatereportingorpublicsectorreporting,leadingchangeinthewayorganisationsreporttheirvaluecreationstorywithinthefinancialstatementsandbeyond.HeretheycouldbeplayinganincreasinglyimportantroleinsupportingwiderreportinginitiativessuchascarbonorESGreporting,respondingtogrowingstakeholderdemandsformoretransparencyonorganisationalimpactsandoutcomes.Ortheycouldbeemployedinfinancialcontrollershiproles,workingattheheartofsustainableorganisationstoensurestronggovernanceandstewardshipoverorganisationalfinances.Theymaybeinvolvedinmorespecialistrolessuchasleadingtaxcomplianceandreportinginitiativesastaxregulationcontinuestoevolve.Ortheycouldbeleadinginvestorrelationsactivities,helpingbusinessesrespondtothechanginginvestorlandscapewithanincreasingfocusparticularlyonESGissuesasinvestorsbecomemoreawareandengaged,wishingtoinvestcapitalinorganisationsthathavepurposeandthatareenvironmentallyandsociallyaware,andthatseektoproducesustainablereturnswithpositivesocietalimpacts.Thestakeholderreporteristhesustainablebusinessandfinanceprofessionalattheheartoftheorganisation,reportingperformanceexternallyinmoremeaningfulwaysinthefaceofgrowingstakeholderdemands.Careerzone4:Thestakeholderreporter16FIGURE3:20futurekeyrolesidentifiedattheheartofsustainableorganisationsKEYROLESFOCUSEDONCREATINGAND/ORPROTECTINGVALUEKEYROLESFOCUSEDONPROTECTINGAND/ORREPORTINGVALUEFinancebusinesspartnersProject/ProgrammeaccountantsPerformancemanagers/analystsTreasuryprofessionalsCorporateﬁnanceexpertsAdvisersGBSprofessionalsEducatorsTechnologyanddataleadersEntrepreneursCFO/C-SuiteCorporatereportersTaxexpertsControllersInvestorrelationsPublicsectorreportersExternalauditorsPublicsectorauditorsESGassurersIA/Riskprofessionals1234567891011121314151617181920REPORTVALUE:HelpingorganisationsreportvalueexternallyinmeaningfulandtransparentwaysCREATEVALUE:HelpingorganisationsexecutetherightbusinessdecisionstocreatesustainablevaluePROTECTVALUE:HelpingorganisationsestablishandexecuteprocessesthatprotectsustainablevalueTRANSFORMATIONDRIVERSCAREERZONE1:ENTERPRISEANALYSTSCAREERZONE2:ASSURANCEPROVIDERSCAREERZONE3:STAKEHOLDERREPORTERSCAREERZONE4:Clickontheboxes,tonavigatetoeachreleventpageorchapter17PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGEDrawingonACCA’scollectiveresearchoverthelasttwoyearsandanewACCAmembersurvey,aswellasinterviews,globalroundtablesandthird-partyresearch,whatdoweseeasthekeydriversofchangepotentiallyaffectingsustainableorganisationsofthefutureandtheroleofsustainablebusinessandfinanceprofessionals?Driversofchange1.Economy2.Environment5.Workforce4.Technology3.SocietyClickonthetabs,tonavigatetoeachreleventchapter18PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:1.ECONOMYSustainableorganisationsneedtosurviveandthriveinthefaceofeconomiesthatareconstantlyevolvingandundergoingstructuralchange.Butitisshocks,includingrecessions,technologicalshiftsandenergytransitions,thattendtobringaboutthegreatestchanges.TheGreatDepressionofthe1930schangedattitudesabouttheroleofgovernment,pavingthewayforapermanentexpansionofthestate.Theswitchfromsteampowertoelectricitytriggeredavastreorganisationofmanufacturing.TheCovid-19pandemicanditsassociatedrecessionhavecreatedthebiggestchallengestotheglobaleconomysincetheGreatDepressionyetevenbeforetheonsetofthecrisistheglobaleconomyfacedanumberofsystemicchallengesfromrisingincomeinequality,increasingunemployment,andtechnologicalupheaval,togetherwithescalatingUS–Chinatradetensionsandgrowingconcernsoverprotectionismandregionalisationthreateningglobalsupplychains.Intheimmediatewakeofthepandemic,theInternationalMonetaryFund(IMF)ispredictingthestrongest(ifuneven)post-recessionrecoveryin80years(WorldBank2021a)butconcernsprevailonthedisparitybetweendevelopedandemergingeconomies.Theshort-termoutlookisprecariouslydependentontheefficacyofthevaccinerolloutandchallengedbythedebtburdenmanyeconomiesnowfacefromtheirresponsetothecrisis.Inthelongerterm,muchdependsonthecapacityofpolicymakerstogeneratesustainablegrowthandrespondtotheclimateemergencybycreatingnewlow-carbonjobs.Buildingcriticalgreeninfrastructureandloweringthecostofinternationaltradewillbekeypriorities.Alltheseissueswillbekeytodetermininghowtheworldeconomywilllookby2030andbeyond.Sustainableorganisationswillneedtoreactto,andmanage,theseeconomicchallenges,whichwillasaconsequenceimpactindifferentwaystherolesofprofessionalaccountants.1.Economy1.Economy2.Environment5.Workforce4.Technology3.Society19Trend1:GlobalproductivityontherisebutemergingmarketsfaceachallengingdecadeThepandemicwillcastalongshadowovertheglobaleconomybutalikelypositiveeffectoverthecomingyearsisamajorboosttobusinessinvestment,productivity,andrealwages(Economist2021).Duringtherecessionof2020,businessinvestmentoverallfellinlinewithwiderGDPfalls.Butwithinthis,spendingontechnologywastransformational,withthepandemicforcingrapidsurgesindigitalinvestment.CompaniesspenttheequivalentofapproximatelyUS$15bnextraaweekontechnology,makingthisoneofthebiggestspendsontechnologyinvestmentinhistory(BusinessWire2021).ThesuddenonsetoftheCovid-19crisisandsubsequentlockdownsforcedrapidchangesinbusinessoperations;technologywasadopted,particularly,tofacilitatesaferemoteworking.Globalbusinessinvestmentcouldbe10%to20%abovepre-pandemiclevelsbytheendof2022andrealwagesgrowthisthereforeexpectedtoimprove,givenwages’highpositivecorrelationwithproductivity.TheimpactoftheCovid-19crisisonnationaleconomieshasbeenuneven,however,withsomecountriesmakingafasterreturntolonger-termeconomicprojections.It’saparticularlychallengingsituationformanyemergingmarket(EM)economies,withalackofprogressinmarketreforms,existingchallengesininfrastructuregaps,poorgovernancestructuresandhealthcarechallengesaswellasinadequatesocialsafetynetsexposedbythecrisis.Forthefirsttimesincethe1990s,theglobalmiddleclassshrankandthenumberofglobalpoorisestimatedtohavebeen131millionhigherbecauseoftheeconomicoutfallaspeopleslippedfurtherdownthesocio-economicladder(Kochhar2021).Thenext10yearswillprobablyseeincomesperheadinmanyEMsfalling,relativetothoseinadvancedeconomies–areversalofthetrendinrecentdecades–withincreasednumbers(possibly150millionmorepeople)livinginextremepovertyintheseregionsby2021(WorldBank2020).AsthegrowthoutlookfortheUSeconomyimproves,tightermonetarypolicyinterventionsmaybemadetocontrolthespeedofUSgrowthandinflationarypressures,butthesecouldhavesignificantknock-onimpactsonEMswithsubstantialdebt.ExcerptfromtheGlobalEconomicProspectspublicationWorldBank,June2021Theworldeconomyisexperiencinganexceptionallystrongbuthighlyunevenrecovery.Globalgrowthissettoreach5.6percentin2021—itsstrongestpost-recessionpacein80years—inpartunderpinnedbysteadybuthighlyunequalvaccineaccess.Growthisconcentratedinafewmajoreconomies,withmostemergingmarketanddevelopingeconomies(EMDEs)laggingbehind:whileabout90percentofadvancedeconomiesareexpectedtoregaintheirpre-pandemicpercapitaincomelevelsby2022,onlyaboutone-thirdofEMDEsareexpectedtodoso.Inlow-incomecountries,theeffectsofthepandemicarereversingearliergainsinpovertyreductionandcompoundingfoodinsecurityandotherlong-standingchallenges.Theglobaloutlookremainshighlyuncertain,withmajorrisksaroundthepathofthepandemicandthepossibilityoffinancialstressamidlargedebtloads.Controllingthepandemicatthegloballevelwillrequiremoreequitablevaccinedistribution,especiallyforlow-incomecountries.Inadditiontothenecessaryeffortstopursuewidespreadvaccination,policymakersfaceadifficultbalancingactastheyseektonurturetherecoverythroughefficientlyallocatedfiscalsupportwhilesafeguardingpricestabilityandfiscalsustainability.Policymakerscanalsohelpentrenchalastingrecoverybyundertakinggrowthenhancingreformsandsteeringtheireconomiesontoagreen,resilient,andinclusivedevelopmentpath.Prominentlyamongthenecessarypoliciesareeffortstolowertradecostssothattradecanonceagainbecomearobustengineofgrowth.(WorldBank2021a)PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:1.ECONOMY1.Economy2.Environment5.Workforce4.Technology3.SocietyCOMPANIESSPENTTHEEQUIVALENTOFAPPROXIMATELYUS$15BNEXTRAAWEEKONTECHNOLOGY,MAKINGTHISONEOFTHEBIGGESTSPENDSONTECHNOLOGYINVESTMENTINHISTORY(BUSINESSWIRE2021).20PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:1.ECONOMYTrend2:GovernmenttakesabiggerroleGovernmentsarelookingatlong-termpathwaysoutofthecrisis.TheCovidcrisisresultedinoneofthemostdramaticincreasesingovernmentspendingacrosstheglobaleconomyinhistory,particularlyinG7countriesasaninnovativerangeoffiscalpolicieswereadoptedthatarelikelytobeusedbygovernmentsinfuturedownturns(Figure4).Theyincludedgenerouswagesubsidies,furloughschemesanddirecttransferstohouseholds.Therearegrowingchallengesfacingeconomies,fromageingpopulationsinWesterneconomiestoincreasedpressuresongovernmentstospendonhealthandsocialcare,aswellasinfrastructurespending,partlyinresponsetoeffortstoachievenetzeroby2050.Butthereareevenbiggerlonger-termquestionsrelatingtothebroaderroleofgovernment,itsfutureroleinprovidingpublicservicesaswellasitsresponsibilitiesforcreatingfairandjustsocietiesinthefuture.Keyprioritiesincludetransformingpeople’sskillstofitthemfortheglobaldigitaleconomy,makingtechnologyinvestments,developinggreeninfrastructure,legislatingforevolvingsocialworkcontracts,rebuildingcommunities,addressinginequalityandinclusivitychallenges,pursuingmoreprivatesectorcollaborativeparticipationandsupportingstart-ups.Broadly,wecanexpecttoseegovernmentstakeabiggerroleinthestateaswelookforwardoverthenextdecade.‘Wehaveseenthegovernmentplayamuchlargerroleduringthepandemic,particularlywithgrants,incentives,andtaxchanges.’ASEANCFOroundtable‘Anotherveryimportantpointintermsofdriversofchangeisthechangingroleofgovernment.Todaythereisalotofpressureongovernmenttoevolveandmorepressuretobeaccountable.Thepublicsectorisunderpressuretopartnerwiththeprivatesector.’Publicsectorroundtable‘Thefuturewillrequiredialogueandengagement,wherethegovernmentunderstandtheprioritiesofbusiness,sobusinessandgovernmentcanworktogethertodrivevalue.’Talentleadersroundtable‘There’sachangeinlandscapeforuswiththefundingavailable,andinacentralgovernmentfunding...Iknowourfundingacrossthepublicserviceswillbesqueezedandwe(asaccountants)havetobemorecommerciallyandbusinessminded.’Publicsectorroundtable‘Ithinkthere’sanincreasingdemandnowforbusinesstohavenon-financialperformanceindicatorsasawayofunderstandingtheirbusiness.AndIthinkthatifthefinancefunctionwithinthepublicsectordoesn’tgetinvolved,somebodyelsewill.Becausethat’swhatbusinessisdemanding.’Publicsectorroundtable‘Wehavestartedtheprocessofmovingtoaccrualaccounting.ButthatisabigchallengeforusinMalaysiaintermsoftheskillsrequired.’IntervieweequoteFIGURE4:Comparingthesizeofselectedeconomies2009–2020fiscalstimuluspackages,asshareofeconomy(GDP)Source:WEF2020a1.Economy2.Environment5.Workforce4.Technology3.Society21PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:1.ECONOMYSPOTLIGHTON:SustainablepublicfinancesthroughCovid-19Afterthecrisis,governmentsarelikelytowanttostabilisetheirspendingfirstandthenbegintorebuildtheirbalancesheets.Inthecurrentenvironment,somecombinationofpublicspendingcutsandtaxincreaseswillberequiredovertimeinmanycountries–butgovernmentscanminimisetheirrelianceonthesetwomeasuresbytakingabalance-sheetapproachtofosteringsustainablepublicfinances.Thiscanbeachievedthroughmaximisingthereturnonpublicassets,focusingonvalueformoneyintheuseofpublicresources,andtakingamulti-capitalapproachbyexpandingthescopeofthepublicsectorbalancesheet.Thecentralrecommendationofthisreportisthatgovernmentsmusttakeabalance-sheetapproachtomanagingtheirfinancesthroughthiscrisis.Balancesheetinformationcanimprovedecisionmaking,shouldactasthebenchmarkfornewfiscaltargets,andwillsupportgovernmentsinusingsufficientfiscalfirepowertorebuildtheeconomyforamoreinclusiveandgreenerfuture.Thebalance-sheetapproachisfoundedonaccrualaccountingbutevengovernmentsoperatingonacashbasiscanapplythemindsetofbalance-sheetmanagementtotheirdecisionmaking.Allpublicsectororganisationsmaintainsomeformofaccountingdataandcanconsiderthisinformationwhendecidingwhetherachangerepresentsvalueformoneyandwhatitsimplicationsarefornetworth–evenwherereliableaccrualinformationdoesnotexist.Tobecredible,publicsectorbalancesheetsmustbeproperlyprepared,auditedanddisclosed.Publicfinanceprofessionalsclearlyhaveanimportantroletoplayinpreparingthebalancesheets.Theycanalsocontributetotransparencyandaccountabilitybyprovidingclear,understandablenarrativestohelpnon-expertsmakedecisionsatatimewhenmanycountrieswillneedtonavigateaseriesofdifficultpolicychoices.(MetcalfeandTaylor2020)Trend3:GlobalsupplychainsarereconfiguredIt’sestimatedthatasmuchasaquarteroftheworld’sgoodscouldshiftproductionlocationby2025(SneaderandSinghal2021),partlybecauseofriskmitigationasorganisationslooktobalanceprofitabilityandcostsavingswithoperationalagility.Businessesareshiftingmoreto‘justincase’supplychains,diversifyingproductioncentresandsupplychainpartnersnotonlytobuildgreaterresilienceacrossthesupplyvaluechainbutalsobecausemanufacturingcostdifferencesbetweendevelopedandemergingmarketscontinuetofall.Theimportanceofcollaborationwithtrustedpartnersacrossthesupplychaininthefuturewillalsoriseascompaniesincreasinglyformpartnershipstodriveefficiencies.Theymayseektoinnovateinthefaceofchangingsocietalorregulatorydemand,forexampleinrelationtoenvironmentaldevelopmentsandgreensupplychaintransparency.Technologytooisanotherkeyfactorexplainingwhywewillcontinuetoseesupplychaintransition–evenlongbeforetheonsetoftheglobalpandemic,newtechnologyplatformswerehavingabigimpactonglobalsupplychainsfromdeliveryrouteoptimisationanalyticstoforecastingcustomerdemand,fromtheautomationofproductionlineprocessesusingcleverrobotstodriverlessvehicles.Growingdatainsightandmanagementcapabilitiesaretransformingthecapacityoforganisationstooptimisetheirsupplychains,driveprocessefficienciesandincreasingqualitycontrolprocessesandenhancingsupplychaintraceability.‘Ourclientswho’vehadinternationalsupplychainrelationships,they’renowlookingtodevelopalternatesupplychainrelationships,whichareclosertohome,albeitmoreexpensive,ornotasefficient,butthey’relookingtodiversifyfromariskmanagementperspective.’MESAroundtable‘Thewholeroleofthesupplychain...it’sagovernanceissue,butparticularlyintermsofenvironmentalandsourcingimpacts,humantrafficking,modernslaveryissues...thecostofthattosocietyishuge…andtheimpactfromareputationalpointofviewtoacompanyishuge.’Sustainabilityglobalforumroundtable1.Economy2.Environment5.Workforce4.Technology3.Society22PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:1.ECONOMYTrend4:ChinaandtheUSdecoupleAccordingtotheCentreforEconomicsandBusinessResearch,ChinawillovertaketheUSAtobecometheworld’sbiggesteconomyin2028.BotheconomiesrecoveredstronglyandquicklyfromCovid-19-inducedrecessionsandthecrisishasdonelittletochangetrendratesofgrowthofaround3%intheUSand5%to6%inChina.TherearepolicyintentionsforfurthereconomicreformandopeningupofChina’seconomy,forexampletheRegionalComprehensiveEconomicPartnershipagreementmadeattheendof2020.Yetthetransitionfrommiddleincometohighincome(ieadevelopedeconomy)maybeparticularlychallengingforChina,givenitspopulationdemographicsanddecreasingworkingagepopulation,aswellasbroadergeo-politicalissues.TradetensionsbetweentheUSandChinawon’thelp,withextensivetariffscontinuingtoremaininplace.ThishasbeenextendedtoUSrestrictionsonChineseaccesstocertainadvancedtechnologies,oftenundertheguiseof‘security’.Consequently,aprocessofsomede-couplingbetweentheUSandChinaisinprospectoverthenextdecade.Bytheearly2030sitshouldbeapparentwhethertheChinamodelofeconomicdevelopmentwillbeasuccess,butafurtherdeteriorationintherelationshipwilldamagetheresilienceoftheglobaleconomy.TheConferenceBoardeconomicforecastfortheUSeconomy(July14,2021)TheConferenceBoardforecaststhatUSRealGDPgrowthwillriseto9%(annualisedrate)inQ22021and6.6%(year-on-year)in2021.FollowingsolideconomicgrowthinQ12021,weexpecttherecoverytocontinuethroughtheremaindertheyear.Lookingfurtherahead,weforecasteconomicgrowthof3.8%(year-on-year)in2022and2.5%(year-on-year)in2023.Theglobaleconomy:ontrackforstrongbutunevengrowthasCovid-19stillweighsGrowthamongemergingmarketanddevelopingeconomiesisexpectedtoaccelerateto6%thisyear,helpedbyincreasedexternaldemandandhighercommodityprices.However,therecoveryofmanycountriesisconstrainedbyresurgencesofCovid-19,unevenvaccination[distribution],andapartialwithdrawalofgovernmenteconomicsupportmeasures.ExcludingChina,growthisanticipatedtounfoldatamoremodest4.4%pace.Inthelongerterm,theoutlookforemergingmarketanddevelopingeconomieswilllikelybedampenedbythelastinglegaciesofthepandemic–erosionofskillsfromlostworkandschooling;asharpdropininvestment;higherdebtburdens;andgreaterfinancialvulnerabilities.Growthamongthisgroupofeconomiesisforecasttomoderateto4.7%in2022asgovernmentsgraduallywithdrawpolicysupport.Source:WorldBank2021b1.Economy2.Environment5.Workforce4.Technology3.Society‘Ithinkgoingforwardinthenextfiveto10years,geopoliticaltensionislikelytoincrease.Wehavebeenseeingchallengeswiththe(US-China)relationship.Ithinktheremaybealotofgeopoliticaltensionswhichwilltransformglobalbusinessandincreaserisk.’Expertgroup–financialandriskmanagementroundtable‘Iwouldsaythatit’smoreofthegeopoliticalissues-it’squiterelevantinourworkhere,theconflictbetweendifferentcountriesandtheissuesthatwehavetotakeintoconsiderationwhenourclientsareoperating.AlotofCFOsarefacingalotofissuesaboutevensay,settingupabusinessorplantsinparticularjurisdictions.’Expertgroup–performancemanagementroundtable23Trend5:Globalisationrecedes,protectionismrisesProtectionismhadbeenincreasinginglobaltradeevenbeforetheTrumpadministrationbeganimposingtariffsonChineseimportsin2018.ButUS–Chinatradetensionssincethenhaveincreasedfearsthatthelongpost-wareraofgreaterglobalisationisoverandmaysoonbeinfullretreat.TheonsetoftheCovid-19pandemicintroducedatemporarysurgeinprotectionismascountriesparticularlyrestrictedtheexportofpersonalprotectiveequipment(PPE)andothermedicalsuppliesdeemednecessaryfordealingwiththehealthcrisis.Althoughtemporary,suchmeasureshighlightedaprotectionistattitudeinmanycountries.Amorepermanenttradeeffectofthepandemicmaybetheshorteningofsupplychainsasemphasisisswitchedtowardsresilienceratherthanlowestcost,areversalofthedevelopmentandextensionofglobalsupplychainsthatwasafactorofincreasedglobalisationinthe1990sand2000s.Tradeflowsmaybecomeevenmoreregionalisedthantheyarealready,withblocscentredontheUS,EUandAsia.GeopoliticalissuesbetweentheUSandChinamaygivethistrendanextraboost.Anincreasingemphasisondomesticresilienceincertainsectorssuggestthatglobalisation–measuredastheshareofworldexportsinglobalGDP–couldwellbeonadecliningtrendincomingyears.‘Inthenext10years,thefocuswillswitchfromAmericaandEurope…toChina…andSubSaharanAfrica.AndthatisreallygoingtochangethedynamicofhowwelookattheworldinIreland.Ithinkit’sgoingtohaveabigimpact.’Irelandroundtable‘Soyou’reseeingalotofcompanieshavingtototallyrelookatthewaytheyactuallygotomarketandwhothey’resellingto.Andthat’salsorelatedtoamoregeneraleconomicpointsaboutnewtradedealsandopeningupparticularlyregionalisedtradedeals.’Talentleadersroundtable‘InSriLankatherearestillrestrictionsonsomeexports,andrestrictiononforeignexchange.Nomatterwhattechnologyyouhaveaccessto,itputspressureonhowcompaniescansurvive,howtheystructureandhowtheygrow.’SriLankaroundtableKEYDATAPOINTSTowhatextentdoyoubelieveglobaleconomychallengespostCovid-19willimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpact,10=verysignificantimpact)Towhatextentdoyoubelieveanincreaseineconomicprotectionismbycountrieswillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpact,10=verysignificantimpact)PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:1.ECONOMY1.Economy2.Environment5.Workforce4.Technology3.SocietyGlobaleconomicchallengepostCOVID-198.1Anincreaseineconomicprotectionismbycountries7.1224Howdriversofchangeintheglobaleconomyaffectthesustainablebusinessandfinanceprofessionalofthefuture(someexamples)nProductivity:Financeprofessionalswillplayakeyroleinsupportingsustainableorganisationstoweatherpotentialeconomicchallengesanddriveproductivitythroughmanyoftherolesthattheyperformtohelpsustainableorganisationscreatevalueorprotectvalue.Improvingorganisationalproductivityisparticularlyrelevanttorolessuchasthoseinfinancebusinesspartneringoranalysis.(Furtherreading:ACCA2021a)nGovernmentfinances:PublicsectoraccountantswillplayabigroleinsupportinggovernmentsandpublicsectororganisationstorebalancetheirfinancesandensurecarefulpublicsectorfinancialmanagementinthelonglegacyfromtheCovid-19crisis.RecentACCAresearchhasidentifiedacriticalroleforpublicsectorfinanceprofessionalsinbuildingbackpublicfinancesforagreenerandmoreinclusivefuture.(Furtherreading:MetcalfeandTaylor2020)nGlobaltrade:tradeisafundamentalpillaronwhichsustainableorganisationsofthefuturewillcreatelong-termvalue.Financeprofessionalscansupporttheirorganisationsbyencouragingthedevelopmentofinternationaltrade,andclientscantapintoadvisoryadviceacrossdifferentthemesrelatingtotradingacrossborders.PreviousresearchbyACCAhasidentifiedanumberofkeyareasinwhichfinanceprofessionalscansupportglobaltradeambitions,fromassistingwithunderstandingforeignregulationandcustomsdutiesthroughtoforeignexchange,domesticregulationimplicationsandaccesstofinance.(Furtherreading:ACCA2018a)nSupplychains:newareasofopportunitieswillprevailinsupportingorganisationstorestructuretheiroperationsandprovidingmoreefficientandenvironmentallyfriendlysupplychains.Forfinanceandtreasuryteams,issuesofworkingcapitalandliquidityacrosssupplyPROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:1.ECONOMYchainswillremainimportant,buttherearebroadercontributionsforfinanceprofessionalstomakeinareassuchasunderstandinghowtore-engineersupplychainstodriveorganisationvalue,orhownewformsofpartnershipscandrivenewbusinessvaluestreams.Inthepublicsector,futurefinanceprofessionalshaveemergingopportunitiestomakesustainablelong-termdifferencesinareassuchaspublicprocurement.(Furtherreading:ACCA2020b)‘Thegovernmenthasmadeaninitialtotransitionfromcashbasedtoaccrual-basedaccounting,andwiththisimplementation,wearerealisingthatthere’sanemergingskillsgapbetweenyourtraditionalaccountanttostartbeingabletosupportgovernmentinpublicfinance.WeneedtobeabletoaccountmoreaccuratelytosupportthefinancingchallengesparticularlyinAfricaeconomies.’AfricaroundtableFurtherrelatedreadingfromACCA:1.Economy2.Environment5.Workforce4.Technology3.SocietyFinancefunctions:seizingtheopportunityACCA’sreportexploresthefuturejourneyofthefinancefunctionpost-Covid.Growingglobally:howSMPscanunlockinternationalambitionsAnanalysisofthewaysinwhichsmallandmediumsizedaccountancypracticescansupporttheirclientstoexpandinternationallyandfacilitateglobaltrade.Newmodelsofpublicprocurement:atoolforsustainablerecoveryTheroleofpublicprocurementandfinanceprofessionalsinhelpingthepublicsectorrespondintheaftermathoftheCovid-19crisis.25PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENTGlobalinitiativesinresponsetotheenvironmentalcrisisaretransformingtheeconomic,social,financial,technological,governanceandpoliticallandscape.Theramificationsfromglobalwarmingextendtoamultitudeofecosystemchallengesfromflooding,watershortages,intensestormdamageandwildfires,throughtohumanitarianconflictsanddisplacementofpopulations.Pollutionfromfossilfuelsin2018isestimatedtohavecosttheglobaleconomyUS$2.9trillion,equatingto3.3%ofworldGDP,fromillhealthandreducedabilitytowork(Myllyvirta2020).By2075thenegativeimpactsfromCO2emissionsareestimatedat$30trillionatcurrentrates(Howardetal2021).Beyondthespecificthreatofglobalwarming,theUnitedNationsSustainableDevelopmentGoals(SDGs)andtargetsto2030areauniversalroadmapforgovernments,business,investorsandcivilsocietytofollowtotransformtheireconomiesandbuildprosperoussocieties,providingaframeworkforunderstandingriskandtheexternalenvironmentinawaythatissuitedtothenewnatureoftheglobaleconomyandthefutureofglobalgrowth.Fororganisations,the10principlesoftheUnitedNationsGlobalCompactaccordprovidetheroadmapforbusinesseswishingtoadvancetheSDGagendaastheyfaceincreasingpressurefromactivistinvestorsandratingsagenciestodemonstratetheirgreencredentialsandpositiveimpactonsociety.Toreportmoretransparentlyandmoreconsistentlytogovernmentsandwiderstakeholdersandtotheimpacts,externalitiesandriskstheyarecreating.Corporatereportingframeworksarebroadeningoutinresponsetochangingsocietalneeds,aslegislativerequirementsshiftandreportingadviceevolveswhileorganisationsgrapplewithunderstandingwhomtheyaretrulyaccountabletoandhowlong-termvaluetosocietyiscreated,measuredandreported.2.Environment2.Environment1.Economy5.Workforce4.Technology3.Society26PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENTTrend6:ClimateemergencyacceleratesTheinternationallybindinglegaltreatyonclimatechangein2015targetedaglobalwarminglimitof1.5degreeshigherthanpre-industriallevels.AsCOP26approaches,leadingeconomiesarechallengedbytheaimofshiftingtoanetzeroemissionseconomyby2050,yetworldleadersarepledgingmoreaggressivetargets(WorldMeteorologicalOrganization2021).InJune2021,theEuropeanUnion(EU)setagreenhousegasemissiontargetofareductionof55%by2030andmadetotaleliminationby2050legallybinding(EuropeanCommission2020).Businessesarenowsettingtheirowngoals,aimingtodecarboniseaheadofthelegaltargetsandtobecomenetzerobusinesses,transformingtheirbusinessmodelsandmanagingtheirresponsetoclimatechangeasasystemicriskwithpotentiallyenormousfinancialconsequences(Rughani2021).There’salsogrowingscrutinyfromtheinvestorcommunity,reflectedinthisyear’slettertoCEOsfromLarryFink,chairmanofBlackRock,suggestingthat‘companies[need]todiscloseaplanforhowtheirbusinessmodelwillbecompatiblewithanetzeroeconomy’(Fink2021).InJune2021,G7leadersmetandagreedthatnationswillmandateclimatereportinginlinewiththerecommendationsoftheTaskForceonClimate-relatedFinancialDisclosures(TCFD)althoughtimescalesarestilltobeconfirmed.Thisreflectsbroadermovestomandatesustainabilityreportingacrossjurisdictions(Figure5).AlongwiththemostrecentreportfromtheIntergovernmentalpanelonclimatechange(IPCC)insummer2021,itsetsthetoneforthedecadeahead.CarbisBayG7SummitCommuniqueTheLeadersoftheGroupofSevenpledgedto‘Protectourplanetbysupportingagreenrevolutionthatcreatesjobs,cutsemissionsandseekstolimittheriseinglobaltemperaturesto1.5degrees.Wecommittonetzeronolaterthan2050,halvingourcollectiveemissionsoverthetwodecadesto2030,increasingandimprovingclimatefinanceto2025;andtoconserveorprotectatleast30percentofourlandandoceansby2030.Weacknowledgeourdutytosafeguardtheplanetforfuturegenerations.’WhiteHouse,June132021‘We’rebuildingskillsaroundenvironmentalconsiderationsinvaluations,howtoavoidgreenwashingbycompanies,climateuncertainties,tobuildthemintoestimates,waterconsumptionmetrics,naturelossindicators.’Expertgroup–auditandtaxroundtable2.Environment1.Economy5.Workforce4.Technology3.SocietyFIGURE5:GeographicalspreadofmandatorysustainabilityreportingrequirementsSource:A4S202127PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENTTrend7:BusinessmodelsgocircularThere’sagrowingnecessityforbusinessestooperateinamuchmoreenvironmentallyfriendlymannerbyleveragingtechnologyandreducingcarbonfootprints.Circularbusinessmodelsareattractingmoreinterestasstakeholdersdemandmoreenvironmentallyfriendlyapproachestobusinessproductionandservicedeliveryacrossthevaluechain.Theyhavethreefundamentalprinciples,namely1)wasteandpollutionshouldbe‘designedout’ofthebusinessmodel;2)materialsusedshouldbekeptinuse;and3)thenaturalecosystemshouldberegenerated.Here,there’sanincreasingswitchfromtraditionalnon-environmentallyfriendlyuseofnaturalresourcesextractedintheirrawformtorenewableorrecoverablematerialthatreducesextractionrequirementsorusesrecyclablewasteintheproductionofnewmaterials.Businessesarealsofocusingmoreonproductlifeextensions,bydevelopingproductswithsignificantdurability,extendingtheuseofproductsbycustomersandtherebyineffectslowingtherateofextractionofnewrawmaterialstoproducerepeatproducts.Organisationsarealsolookingtoretainfinalownershipofproductsratherthansellingtocustomers,therebyretainingcontroloftheseproductsattheendoftheirusefullifeandmanagingthemmuchmoreeffectivelyfromanenvironmentalperspective.Thisissymptomaticofabroaderpushfromorganisationstobeeco-credibleacrossthevaluechain.‘Youknow,it’sagreatsellingpointifyoucanpersuadeayoungpersonwhocaresabouttheenvironmentthatyoucancontributetothatinanaccountancycareer.It’salmostaboutasellingpieceonourparttobringthatpassioninandbuilditintothequalificationandthereforeintoaspecialismgoingforward.’UKroundtable‘Havingbusinesseswithpurposethatservecollaborativecommunities,itsgrowingbusinessesthatareinlinewiththeUNsustainabledevelopmentgoals,itsaboutbuildingorganisationsthathaveamuchbetterandbiggerimpactontheearthintermsofsustainability.’Intervieweequote‘Essentiallywearepushingforsustainablefinance.Wearepushingformorecarbonfreeenergyresources.Thecostsofthesethingshavetomeasuredandthisiswherefinancecancontribute.’IntervieweequoteTrend8:NaturalcapitalmanagementisagrowingpriorityNaturalcapitalmanagementandbiodiversityaregrowingprioritiesforbusinesses,asorganisationslooktoadopttoolssuchasthenaturalcapitalprotocoldecisionframeworktoimproveidentification,assessmentandvaluationoftheirdirectandindirectimpactsonnaturalresources.Here,businessleadershipwillbeessentialtomanagingthepotentialreputational,organisational,regulatoryandsupplychainrisksthatprevailiforganisationsmisusenaturalresources.Effectivenaturalcapitalmanagementstrategiesareessentialtosecuringinvestment,asassetmanagementorganisationsandinstitutionalinvestorsincorporateenvironmentalconsiderationsintotheirriskvaluations.Customersandclientsoforganisationsareaskingsimilarquestionsabouttheenvironmentalimpactsofthe‘take-make-waste’model.Morebroadlyforgovernments,inMarch2021,the52ndUnitedNationsStatisticalCommissionadoptedanewframework–theSystemofEnvironmental-EconomicAccounting–EcosystemAccounting(SEEAEA)toensurethatnaturalcapital,suchasforests,wetlandsandothernaturalecosystems,isrecognisedineconomicGDPreporting,withtheintentionthatthiswillunderpindecisionmakingatbothCOP15andCOP26laterthis2.Environment1.Economy5.Workforce4.Technology3.Societyyear(UNStatisticalCommission2021.It’sestimatedthatapproximately50%ofcurrentglobalGDPdependsonnaturalcapitalextraction(Russo2020).‘Howdoyouremainprofitablenotattheexpenseofpeopleandplanet.Thisisakeychallenge.Iamatruebelieverofthetriplebottomline.’Intervieweequote‘Youneedteam-workwithsustainabilityissues.Noonepersonordepartmentcanknoweverything.’Intervieweequote‘FormybusinessESGisbecomingmoreandmoreprominent.Ourclientsareaskingmoreaboutourownpolicies.Andwhenwelookoutatthemarket,weareseeingthatthere’smoresensitivityfrominvestorsastowheretheyinvesttheirmoneyandthetypeofcompaniestheyinvesttheirmoneyin,andsoon.AndIseeaveryimportantroleforaccountantsinthatwholenewdynamic,becauseintermsofmeasuringcompany’scompliancewithESG.Iseeaccountantsbeingabletoalmostbuildanewlineofaccountingnew,sorry,anewtypeofAccountancy,whichisnotsomuchfocusedonjustanalysingthebalancesheet,butbasicallylookingwaybeyondthebalancesheet.’Expertgroup–corporateandbusinessreportingTrend9:TaxationreformacceleratesThepossiblerebalancingandreformofthetaxsystemasgovernmentsseektorespondtothepressuresofglobalisation,workforcetransitionandbroadersocietalchallengeswillpotentiallyhaveamajorimpactonsustainableorganisationsoverthenextdecade.Therearechallengesaheadformanynationalinstitutionsinsecuringtaxationrevenuesinthefaceofshiftingworkforceandemploymentpracticesandchangingdemographics.Thiswillbeexacerbatedaspopulationsageandbecomemore28PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENTdependentongovernmentresources,ratherthanworkingandpayingtaxes.There’llalsobesignificantshiftsinhowgovernmentsleveragetechnologiestoimprovetheadministrationoftaxationpolicies,withamajorpushforautomationanddigitaldevelopmentsusingtechnologiessuchasAIandmachinelearning.Thesedevelopmentsarepresentingtaxcollectionauthoritieswithnewopportunitiestoquerymassesofdataandidentifypotentialareasoftaxnon-compliance.Inparticular,nationalinstitutionsandgovernmentswillstepuptheiruseoffiscalpolicyinterventionstohelpcurbgreenhousegasemissions,environmentalpollutionandbiodiversityloss,eitherthroughcap-and-tradesystemsthatcapthetotallevelofgreenhousegasemissions,allowingthosewithlowemissionstoselltheirextraallowancestolargeemitters,orbyimposingdirectcarbontaxesonemissions(Groothuis2018).Wecanexpectfurtherdevelopmentsincarbontaximplementationstrategiesorchanginggovernmentpracticesinrelationtotaxcreditsthatcontinuetosupportfossilfuelconsumptionandproduction.Carbonpricingrequirementswillcontinuetochangeandthepracticeof‘internalshadowpricing’byleadingbusinessestosupportshiftstoinvestmentdecisionsinlow-carbonoptionswillcontinue.Carbontaxes,inparticular,couldincreasegovernmentrevenues,whilealsoprovidinganincentiveforfirmstouseanddevelopmoreenvironmentallyfriendlyproductionprocessesandencourageinvestmentinrenewableenergy,buttheyarereallyonlythestartingpointfortaxationasapolicyleverinthedecadeaheadtodrivebestuseofnaturalcapital,particularlymoreresponsiblewateruse,thediscouragementofdeforestation,aswellasmorebroadlyprovidingincentivesforbusinessestoshifttomorecircularandenvironmentallybusinessmodels.Aclearexampleofpolicyinterventionsdesignedtousetaxtohelpeconomiestransitiontomoreenvironmentallyfriendlygrowthinclude,forexample,theEuropeanGreendeal.Yetthereremainhurdlestobeovercome.Whilecarbontaxesmayinduceenergyinnovationandefficiency,theymayalsoreducebusinessprofitabilityandinvestmentincertainsectors.Asever,careneedstobetakennottostemeconomicgrowth,whichisinitselfvitaltorepairingfinancesandavoidingthetypeofdeeppublicspendingcutsthatfollowedtheglobalfinancialcrisisof2007–2008.‘WhatweseeinPolandrightnowisalotofdigitalisationandtechnologygoingintotheregulationoftaxes.ThegovernmentandMinistryofFinancearebringinginnewtools,andyouneedgoodtechnologysystemstomeetthoserequirements.’CEEroundtableTrend10:‘Sustainability’reframestheriskandreportingagendaTheCovid-19crisishasirreversiblychangedorganisations’approachestoriskmanagement,andexposedsignificantshortfallsinprevailingrisk-managementpractices.Toooften,thesepracticesoperatedinisolation,focusingtooheavilyonfinancialrisks,ordidn’teffectivelyidentifytheinterrelationshipsofdifferentrisksconfrontingtheorganisation.ThecrisishasparticularlyhighlightedtheimportanceofmanagingrelatedESGrisksincreatingandprotectinglong-termvalueasbusinessuncertaintyincreases,thespeedofbusinesschangeaccelerates,andasinvestorcommunitiesincreasinglybuildESGriskassessmentsintocompanyvaluations.Organisationsneedtobebetterplacedtoestablishmetrics,monitorandmeasureESGandwiderbusinessvaluedriver-relatedrisksandunderstandthematerialityofthesefactors(ACCA2021b).Thisconvergenceofenterpriseriskmanagement(ERM)andESGcontinuestobeapriorityasstandardsettersandregulatorsincreasinglyrequirecompaniestoreportagainstESGmetrics.Thereisgrowingmomentumforashifttoasingleglobalstandard,particularlyforclimateriskreportingbutalsotoachievethebroaderharmonisation,simplicityandclarityneededfornon-financialandESGreporting.In2020,thefivemajornon-financialreportingorganisations2publishedastatementofintentcommittingthemtoworkingtogethertowardsmoreholisticandcomprehensivecorporatereporting.2.Environment1.Economy5.Workforce4.Technology3.SocietySystemofEnvironmental-EconomicAccounting–EcosystemAccounting(SEEAEA)(UN2021)InMarch2021,the52ndUnitedNationsStatisticalCommissionadoptedtheSystemofEnvironmental-EconomicAccountingEcosystemAccounting(SEEAEA)(UN2021),anewstatisticalframeworkthatwillenablecountriestomeasuretheirnaturalcapitalandunderstandtheimmensecontributionsofnaturetoourprosperity,andtheimportanceofprotectingit.OntheadoptionoftheSEEAEAframework,theSecretary-GeneraloftheUnitedNations,AntónioGuterres,said:‘Theadoptionofthiseconomicandenvironmentalframeworkisahistoricsteptowardstransformingthewayhow[sic]weviewandvaluenature.Nolongerwillweallowmindlessenvironmentaldestructiontobeconsideredaseconomicprogress.’‘Nature’sresourcesstilldonotfigureincountries’calculationsofwealth.Thecurrentsystemisweightedtowardsdestruction,notpreservation.’‘Thebottomline…isthatweneedtotransformhowweviewandvaluenature.Wemustreflectnature’struevalueinallourpolicies,plansandeconomicsystems.Therewardswillbeimmense.’QuotedinUN20212TheGlobalReportingInitiative(GRI),theSustainabilityAccountingStandardsBoard(SASB),theInternationalIntegratedReportingCouncil(IIRC),theClimateDisclosureStandardsBoard(CDSB)andtheCarbonDisclosureProject(CDP).29PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENTThiswasfollowedbytherecentmergeroftheSustainabilityAccountingStandardsBoard(SASB)andtheInternationalIntegratedReportingCouncil(IIRC)intothenewlycreatedValueReportingFoundation(VRF)(VRFn.d.).Thereareotherdevelopmentstoo:asannouncedinApril2021,theEUisupdatingitsNon-financialReportingDirective,whichrequireslargepublic-interestcompanieswithmorethan500employeestodiscloseinformationonawiderangeofissuesfromenvironmentalandsocialmatterstohumanrights,anti-corruptionandbribery(EuropeanCommissionn.d.).Thisextendsthescopeofcompaniesthatwillhavetoreport,requiresauditassuranceovertheinformationandintroducesrequirementstoreporttomandatoryEUsustainabilityreportingstandards(EuropeanCommission2021).Additionally,theWorldEconomicForum(WEF)hasreleaseditsnewstandardsoncommonmetricsandconsistentreportingforsustainablevaluecreation(WEF2020b)defining21coremetrics,the‘StakeholderCapitalismMetrics’withsignificant‘bigcompany’takeup(Ward2021).Further,theInternationalFinancialReportingStandards(IFRS)Foundationconsultation(IFRS2021)onestablishingaglobalsustainabilitystandardsboardto‘deliverhigh-qualityinternationalsustainability-relatedreportingstandards’isontrackwithpotentialplanstopublishitsfirstsetofstandardsinthemiddleofnextyear(Jones2021).‘ThereisabigchangeintermsoftheexpectationofpeoplewantingaholisticviewfromanESGandfinancialstandpointandESGinformationisjustasimportantasfinancialinformationparticularlywiththeirassociatedmaterialityconcepts.’Expertgroup–auditandtax‘Externalfactorssuchaseconomic,natural,socialandtheenvironmentmayleadtoaglobalbusinessrevolution,whichwillultimatelyandmoredirectlyleadtochangesinaccounting.’Chinaroundtable2.Environment1.Economy5.Workforce4.Technology3.SocietySPOTLIGHTON:RethinkingriskforthefutureACCA’sreportRethinkingriskforthefutureexaminesthefutureofenterpriseriskmanagementCovid-19hastriggeredthebiggestcrisisinageneration,havingcausednotonlyaglobalpandemicbutalsounprecedenteddisruptiontobusinessesandeconomiesworldwide.Whilewehaveseenhowtheawarenessofriskmanagementanditsscopeevolvewithpreviouscrises,theCovid-19pandemicisunique.Ithasextendedlongerthananyofuseverimaginedandwasnotsparkedbyafinancialcrashorpoliticalevent.Ithashiteveryonebetweentheeyesandacceleratedmanyexistentialrisksthatwerealreadyemergingbuthadneverthelessbeenneglectedbyeventhemostmatureriskframeworksaroundtheworld.Mostbest-practiceriskframeworkssaweitherahighlytransmissiblevirusorthenexteconomiccrisisonthehorizonbutnotthedisruptionofthetwocombined.Noonecouldhavepredictedtheextentofthelockdownsandotherassociatedgeopoliticalrisks.Thequestionnowishowwecanrethinkriskinthisnewfast-changing,complexworld...ESG:thenewfrontierofERMAsESGissuesintensifyandincreasinglyinterconnect,theneedforproperintegrationisessentialtoanorganisation’slong-termsuccess.Anenterprise-wideviewisnecessarytoattainthemindsetneededtointegrateESG-relatedriskseffectively.Hence,theconvergenceofERMandESGcontinuestobeanimportantfocusforaccountantsasregulatorsandotherstakeholdersincreasinglyrequirecompaniestoreporttheirESGimpacts.IntegratingtreatmentofESGrisksmakessensetodofromanenterprise-wideperspectivebecauseitallowsthecompanytodealwiththeminastructuredandmorestrategicwayaspartofitsaggregateriskmanagement.Organisationswithanenterprise-wideviewoftheiraggregateriskcanmonitorandreportonKPIsandKRIsmoreefficientlyandaccuratelyandleverageexistingmetricsbyrepurposingthemtowardsESGgoals.ERMallowstheorganisationtoreducethedownsidesmoreeffectivelywhilealsocapturingopportunitiesandenhancinglong-termperformance.(ACCA2021b)‘WehavejustfinishedourAGMafewminutesago.Andsomeofthequestionsthatwereaskedbyshareholdersis,whatistheproportionofyourgreenfinancingversusyourtotalassets?Thesequestionsarecomingupfromshareholders,fromanalysts,andvariousotherstakeholders.Sothisiswherethefinancepersonplaysahugerolein(producingrelevant)reports,forESGpurposes.There’salsogreentaxandtheuseofcarbontaxes.Therearelotsofareaswherethefinancepersoncanplayarole.’ASEANCEOroundtable‘WearelookingatESGfromariskmitigationandriskadaptationperspective.Thesearethekeyissuesthattheboardareinterestedin.Weareprudentaboutthemetricswetarget.’Intervieweequote‘Riskmanagementisgoingtobeanincreasinglyimportantissuesforaccountants,tounderstandthedimensionsofstrategicrisksandtoanalyseandunderstandtheirimplications.’Intervieweequote30PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENT2.Environment1.Economy5.Workforce4.Technology3.SocietyKEYDATAPOINTSTowhatextentdoyoubelievetheimplementationofenvironmentalbusinesspracticeswillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof–10where1=noimpact,10=verysignificantimpact)Towhatextentdoyoubelievecarbontaxesandotherenvironmentalpolicieswillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievethechangingnatureofbusinessriskwillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievegrowingstakeholderinterestintheclimateagendawillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievewidercompanydisclosuresonnon-financialswillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Implementationofenvironmentallyfriendlybusinesspractices7.29Useofcarbontaxesandotherenvironmentalpolicymechanisms7.12Changingnatureofbusinessrisk7.99Growingstakeholderinterestintheclimateagenda7.39Widercompanyreportingdisclosuresonnon-ﬁnancialissues7.7631PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENT2.Environment1.Economy5.Workforce4.Technology3.SocietynInvestorfocusforenterprisevalue:thenewboardwouldfocusoninformationthatismaterialtothedecisionsofinvestors,lendersandothercreditors.nSustainabilityscope,prioritisingclimate:duetotheurgentneedforbetterinformationaboutclimate-relatedmatters,thenewboardwouldinitiallyfocusitseffortsonclimate-relatedreporting,whilealsoworkingtowardsmeetingtheinformationneedsofinvestorsonotherESG(environmental,socialandgovernance)matters.nBuildonexistingframeworks:thenewboardwouldbuilduponthewell-establishedworkoftheFinancialStabilityBoard’sTaskForceonClimaterelatedFinancialDisclosures(TCFD),aswellasworkbytheallianceofleadingstandard-settersinsustainabilityreportingfocusedonenterprisevalue.TheTrusteeswillconsidertheprototypeproposedbytheallianceforanapproachtoclimate-relateddisclosuresasapotentialbasisforthenewboardtodevelopclimate-relatedreportingstandards.Toprepareforthiswork,theIFRSFoundationwillinitiateaprocessofstructuredengagementwiththerelevantorganisations.nBuildingblocksapproach:byworkingwithstandard-settersfromkeyjurisdictions,standardsissuedbythenewboardwouldprovideagloballyconsistentandcomparablesustainabilityreportingbaseline,whilealsoprovidingflexibilityforcoordinationonreportingrequirementsthatcapturewidersustainabilityimpacts.Source:<https://www.ifrs.org/news-and-events/news/2021/03/trustees-announce-strategic-direction-based-on-feedback-to-sustainability-reporting-consultation/>32GRIGlobalReportingInitiative(2020)PurposeProvidesorganisationswithstandardstoreportontheirsustainabilityimpactsrelatingtoenvironmental,socialandgovernanceissuesWhofor?Companiesofanysize,sectororlocationaswellasinvestorsandpolicymakersDISCLOSURESDisclosuresGovernance,stakeholderandreportingpracticesEconomicperformance,marketpresence,procurementpracticesNaturalcapitalemissions,biodiversity,water,energySocialincludingworkforcerelations,employeeinclusivity,communityengagementIIRC&SASBValueReportingFoundationPurposeAframeworkandsetoftoolsfromtherecentIIRCandSASBmergerthatsupportsbusinessandinvestordecisionmakingtocreatelongtermvalueWhofor?RelevanttocompaniesinanysectororlocationDISCLOSURESDisclosuresUsestheintegratedreportingframeworkformulti-capitalcorporatereportingaroundmaterialissuesimpactinganorganisationsstrategy,governanceandperformancetoproduceintegratedreportsUsesSASBstandardstoprovideindustry-speciﬁcdisclosuretopicsandmetricstoinformandstrengthenwhatshouldbeincludeintheintegratedreportDisclosureacross5coreareasofenvironmental,social,human,businessmodelandinnovationandleadershipandgovernanceTCFDTaskForceforClimateRelatedDisclosuresPurposeBusinessledframeworkwiththepremisethatclimateriskhasﬁnancialimplicationsandmustbeconsideredaspartofnormalbusiness,investmentandstrategicplanningdecisionsWhofor?BecomingmandatoryintheUKforlistedcompanies,UKregisteredlargeprivatecompaniesandﬁnancialinstitutions,insurancecompaniesandassetmanagersandparticularlyrelevanttothosewithlargeclimateriskactivitiesDISCLOSURESDisclosuresPrimarilyaroundthecoreareasofhowclimaterelatedrisksandopportunitiesimpactgovernance,strategyandﬁnancialplanning,riskmanagement,aswellasdisclosingclimaterelatedmetricsandtargetsCDSBClimateDisclosureStandardsBoardPurposeFrameworkforreportingenvironmentalandclimatechangeimpactsinmainstreamcorporatereportsWhofor?RelevanttocompaniesinanysectororlocationDISCLOSURESDisclosuresRangeofenvironmentalimpactsfromgovernanceandmanagementofenvironmentalpoliciesandtargets,risksandopportunities,performanceandcomparativeanalysisFIGURE6:Summaryofkeynon-mandatoryreportingstandards2.Environment1.Economy5.Workforce4.Technology3.Society33Howenvironmentaldriversofchangeaffectthesustainablebusinessandfinanceprofessionalofthefuture(someexamples)FurtherrelatedreadingfromACCA:PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:2.ENVIRONMENTnClimateriskreporting:Asmoreorganisationsunderdifferentjurisdictionsarerequiredtoreportonglobalenergyuseandgreenhousegasemissions,thereareincreasingopportunitiesforfinanceprofessionalstobeinvolvedinsupportingorganisationsonwiderclimateriskreportingandassurance,aswellashavingaspecificroleinensuringthatclimate-relatedrisksaffectingthefinancialstatementsareproperlydisclosed.Thesustainablebusinessandfinanceprofessionalcouldbehelpingcalibratethefinancialimpactsontheorganisationsofshiftingbusinesspracticestonetzero.Theseincludeimpactsoncashflows,balancesheetsandmarketvaluationsfromcontinuedusedofnon-greenassetsandassociatedclimate-changerisks,orevolvingauditpracticestoensurethatsuchrisksareappropriatelydiscussedinauditopinions.(Furtherreading:Baboukardosetal.2021)nNaturalcapitalmanagement/Circularbusinessmodels:Thereisincreasingneedforfinanceprofessionalstosupportorganisationsinthemanagementofnaturalcapital.Fromimprovingcontrolenvironmentsthatcaptureandhelpmitigatenaturalcapitalrisksoradvisingtheirclientsandemployersontherisks,liabilitiesandreputationalfalloutarisingfromcorporateactivitythatexacerbatesclimatechange,throughtothedevelopmentofperformance-managementframeworksthathelporganisationsunderstandtheirnaturalcapitalrisksandopportunitiesaswellascapturing,measuringandreportingonnaturalcapitalactivities.(Furtherreading:Machado2021)nCarbontaxes/Cap-and-tradesystems:Increasinglegislationforgreentaxestosupportcarbonemissioncutsornewpolicymeasuresrelatingtocap-and-tradesystemspresentbusinesseswithanarrayofoptionsintermsofhowtheywishtomanagetheirresponsibilitiesinrelationtocarbonemissions,aswellastheneedtoassessthestrategic,financialandoperationalimplicationsofthestrategiestheychoosetoadoptinresponse.Heresustainablebusinessandfinanceprofessionalscanplayacriticalroleinhelpingbusinessescalibratetheimpactsofthechoicestheymakeastheyseektoreducecostsandmitigatetheadversereputationalimpacts.Thisincludes,forexample,helpingapplyinternalcarbonpricingpoliciestoredirectinvestmentinitiativesintogreeneralternatives,oranalysingandcalibratingthefinancialandbusinessimpactsofthesedecisions.2.Environment1.Economy5.Workforce4.Technology3.SocietyClimatechangerisk-relateddisclosuresinextractiveindustriesAreviewofthe2020reportofleadingorganisationsintheextractiveindustriestoassessthequalityofdisclosuresinrelationtoclimatechange.Professionalaccountantschangingbusinessfortheplanet:aguidetonaturalcapitalmanagementAnanalysisofthefutureroleofprofessionalaccountantsinhelpingorganisationsmanageandreportonnaturalcapitalinitiativesandimpacts.TechnologytoolsandthefutureoftaxadministrationAreportthatconsidersthefutureoftaxadministrationandtheimpactofdigitalisation.34Accountantsandthelow-carbontransitionWiththeclimatecrisisnowatcodered,financeteamsmuststepuptohelptheirorganisationsdecarbonise.SanjayRughaniischairofIFAC’sProfessionalAccountantsinBusinessAdvisoryGroup,andCEOofStandardCharteredBankTanzania.PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCASESTUDY:ENVIRONMENTAsCOP26financeadviserandUNspecialenvoyMarkCarneymadeclearattheIFACandACCAClimateWeekeventinSeptember2020,theaccountancyprofessionisessentialtotheworld’sachievementofalow-carboneconomy.Ofcourse,thecontributionofindividualaccountantstothetransitionwilldependontheirrole,buttherearefewactivitiesthataccountantsundertakethatdonotrequirethemtothinkaboutclimateimpactsandtheirfinancialconsequences.Thetransitiontoanet-zeroworldcapableofkeepingglobalwarmingbelow2°Crequiresclimate-literateaccountantswhocan:nadvisetheirclientsandemployersontherisks,liabilityandreputationaldamagearisingfromcorporateactivitythatcontributestoclimatechangensupportthestrategic,operationalandfinancialassessmentofclimatechange,andsteertheirorganisationtowardstheopportunitiesthatdecarbonisationbringsnprovidemanagementandinvestorswiththeinformationtheyneedtounderstandthecurrentandprospectiveimpactofclimate-relatedmattersonanorganisation,anditsfinancialpositionandprospects.GovernmentcommitmentsItmayhavebeenslowtostart,butalow-carbontransitionisunderway.Itwillchangehoweconomiesoperate,creatingbothuncertaintyand,atthesametime,significantopportunity.Governmentsandbusinessesarerapidlysettingnet-zeroemissionstargets.SomejurisdictionssuchastheEU,USandChinaaresettingincreasinglyaggressivetargets.Intotaltodate,about120governmentsandafifthoftheworld’s2,000biggestlistedcompanieshavemadenet-zerocommitments.However,theseambitiouscommitmentsdisguisethereality:thatbusiness-as-usualremainsprevalent.SadrealityTheMSCI’sNet-ZeroTrackergaugestheprogressoftheworld’spubliccompaniestowardreducingemissions.Itshowsthatwithoutanychangeintheircurrentemissions(whichremainat2013levels),listedcompanieswilldepletetheirremainingemissions‘budget’,basedonmeetingtheParisAgreement’stargetoflimitingglobalwarmingto1.5°C,injustfiveyearsandeightmonths.Companieshave21yearsbeforetheyuseuptheemissionsbudgettolimitglobalwarmingtoalessambitious2°C.Net-zeroemissionscommitmentsgiveaclearsignalofintenttoachievethetargetsoftheParisAgreement,butthereissignificantworktobedone–inparticular,companiesputtinginplacetargetedstrategiesandrobustshortandmedium-35PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCASESTUDY:ENVIRONMENTInadequateinformationAmajorchallengeforinvestorsandthecapitalmarketsisthatclimateriskdisclosuregloballyisinadequate.Forclimaterisktobefullyreflectedincompanyvaluations,everycompany,bank,insurerandinvestorneedstodisclosetheirclimate-relatedrisksonastandardisedbasis.Companyvaluationsina2°Corlowerworldwilllikelybeverydifferentgiventhepotentiallysignificantimplicationsonfuturecashflows.Climatechangecanonlybefullytakenintoaccountinvaluationswhencompanieshaveincorporatedclimate-relatedrisksintheirfinancialplanningandperformance.Asclimateisincreasinglyintegratedintocorporatedecision-makingandreporting,valuationswillbetterreflecttheactualandpotentialclimateimpacts.Accountingandfinanceprofessionalshaveacriticalroleinachievingglobalnet-zeroemissions.Inparticular,CFOsandfinanceteamsprovidetheinformationneededtodrivedecisionsandallocatecapital,andtypicallyinterfacewiththecapitalmarkets.Accounting4Sustainability’sNetzero–apracticalguideforfinanceteamshighlightsthekeyactivitiesoffinanceteamsinhelpingtoachievenetzerointheirorganisations.QuantifyingimpactsWeheardfromKPMGatIFAC’srecentProfessionalAccountantsinBusinessAdvisoryGroupmeetingthatasignificantchallengeinclimate-riskassessmentsanddisclosuresisthatclimateimpactsarenotquantifiedandmonetised.Quantificationhelpstodrivemediumandlong-termplanning,andiswhereaccountantsinvolvedinfinancialplanningandanalysiscansignificantlycontribute–byprovidingfinancial-relatedinformationaboutprofitsandvaluationsthatreflectclimate-relatedrisksandevents.Withoutquantificationofclimaterisksandopportunities,companieswillfindithardtocompareclimatechangeagainsttheirwiderenterpriserisks,andinvestorswillbeunabletomakeinformeddecisionsabouttheallocationoftheircapital.Thereisalsoacriticallinkbetweeninternalfinancialplanningandexternalreporting,ofwhichaccountantsneedtobeaware.Carbonpricingisessentialtounderstandingclimateriskandacompany’seconomicoutlook.Consequently,carbonpricingassumptionsfrominternalfinancialplanningneedtocarrythroughtofinancialreporting.Inconsistentuseofcarbonpricingassumptionsinassetandliabilityvaluationsforaccountingandpublicdisclosurehidesfrominvestorsthepotentialforadverseeffectsoflowerassetvalues,higherimpairmentlosses,shorterestimatedusefullives,andearlierassetretirementcosts.RisingtotheoccasionUnderstandingandcommunicatinghowtheircompanyisbecomingnet-zerocompatiblewillbepartofanyfinanceleader’sconversationswithboards,investorsandotherstakeholders.Theywillneedtoexplainrisksandopportunities,targetsandKPIs,prioritisationofcapitalinvestment,andfinancialimpacts,includinghowclimatechangerelatestoaccountingestimatesandjudgementsusedinthepreparationoffinancialstatementsandreports.Forclimatereportingtomovebeyondbeingamarketingexercisetoprovidinginformationthatboardsandinvestorsneedtoenabledecarbonisation,accountantsneedtobepartoftheequationandrisetotheoccasion.termtargets,andensuring,wherepossible,thatfutureinvestmentsareclearlyaligned.ClimateAction100+hasputinplaceanet-zerocompanybenchmarktohelptrackbusinessalignmentwiththeParisAgreement.Morethan40assetmanagers,includingVanguardandBlackRock,signeduptotheNetZeroAssetManagersInitiative,pledgingtomaketheirportfoliosnet-zeroby2050orearlier.Inhisannualletter,BlackRockCEOLarryFinkcallsonallcompanies‘todiscloseaplanforhowtheirbusinessmodelwillbecompatiblewithanet-zeroeconomy’.Capitalmarketshavestartedtomakedecisionsaboutthetransitiontorenewableandsustainableenergy,withthecostofcapitalforfossilfueloptionsincreasing.Financialcapitalisseekingsolutionstoreducegreenhousegasemissions.Meanwhile,drivenbythesignificantthreatofclimate-relatedstrandedassets,centralbanksandfinancialsupervisorsareassessingtheirroleinensuringtheresiliencyofthefinancialsystemandthesolvencyoffinancialinstitutions.36PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETYSustainableorganisationsofthefutureunderstandtheyarepartoftheveryfabricofsociety,butrapidshiftsincommunitiesacrosstheworldatanextraordinarypacewillhaveprofoundimplicationsforhowbusinessesoperateinthefuture.Stakeholdersnowdemandgreateraccountability,inclusivityandtransparencyfromcorporationsonhowtheyarerunandthewidersocietalimpactstheycreate,andorganisationsacrosstheglobeincreasinglyunderstandthattheyhavetobegoodcorporatecitizens,providesocialvaluetotheircommunities,treattheiremployees,customersandotherstakeholdersappropriately,aswellasprovidingfinancialreturntoshareholders.InthewakeoftheCovid-19crisisthereisanalmostinexhaustiblelistofsocietalchallengestofaceasthepandemicraisednewexistentialquestionsontheroleofgovernmentinsociety.Thecrisisraisednewconcernsontrust,intrusion,dataprivacyandethicalleadership,aswellasanappreciationofthedisproportionateimpactthepandemichadonmarginalisedgroupsinsociety.Italsoexposedfurtherunderlyingsystemicsocialandracialequalitychallengesacrosstheworld.Andthereareotherlonger-termsocietaltrendsalsoshapingandchangingtheglobaleconomytoo.Theseincludeshiftingglobaldemographicsduetoageingpopulationsandchangingfertilityrates;transformationintheglobaleducationlandscape,whichhasthepotentialtotransformlivelihoodsinpoorercountries;andrapidbusinessmodelchangerespondingtochangingconsumerneeds.Forbusinessesacrosstheworldthatseektobeattheheartofthecommunitiestheyserve,theseissuespresentrisksaswellasopportunitiesastheworkplacetransforms.3.Society3.Society2.Environment1.Economy5.Workforce4.Technology37PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETYTrend11:LeadershiptrustinthespotlightTrustinlong-establishedinstitutionsacrosssocietyhasbeenwaningbutwasalreadydecliningbeforetheCovid-19crisis,spurredbyatechnologyrevolutionandjobdisplacementaswellasmajorsocialchallenges.The2021EdelmanTrustBarometer(Edelman2021)revealswidespreadmistrustofsocialinstitutionsandleadersacrosstheworld,withinanenvironmentof‘informationbankruptcy’.Whilethegoodnewsforbusinessleadersisthattrustinorganisationshasslightlyimproved,thebroadernarrativeisoneofchallengefororganisationsastheyseektoservemultiplestakeholderinterestsandproducesocialaswellasfinancialvalue,inanenvironmentwheredemandsfororganisationaltransparencyisgrowingandwherecorporatereputationsareincreasinglyvulnerableascorporationsareheldtoaccount.Inaddition,thereisatideofregulationsuchastheGeneralDataProtectionRegulation(GDPR)intheEUandtheCaliforniaConsumerPrivacyActimposingcustomerdataprivacyrulesonorganisations.Businessesmustincreasinglyrecognisethatpoordatamanagementdamagestheirbrand,revenueandcustomerloyalty.Ascorporatepurpose,equityandsocialinclusioncometodominatethebusinessagenda,thismeansagreaterfocusonethicalleadership.Therewillbegrowingemphasisonconnectingdesiredsocialoutcomeswithtangiblebusinessoutcomesandperformance,otherwisetrustincorporateorganisationsandthepeoplewholeadthemwilldiminishfurther.‘Ifeelgoingforwardtheyoungergenerationthatarecomingthroughthattheywillonlyworkforcompanieswhohaveapurposealignedtosustainabilityandethicsandtheywillwalkwiththeirfeet,theywon’tworkyouknow.’Irelandroundtable‘Thenewcurrencywillbetrust,ascitizensdemandmore.Professionalaccountants(workinginsustainableorganisations)musthavethisatthebackoftheirminds.’Talentleadersroundtable‘Iseeethicsasafoundationalfacettoourprofessionnomatterwhatservicewe’redelivering.’TalentleadersroundtableTrend12:InclusivitymakesbusinesssenseThediversityandinclusionagendahasbeencatapultedintoprominencebytheCovid-19crisis,withwomen,ethnicminoritiesandtheyoungergenerationdisproportionatelydisadvantagedbytheeconomicimpactonthelabourmarket.Atthesametime,governmentshavepromisedto‘leavenoonebehind’and‘buildbackbetter’forthefuture,asdemandsgrowforwidersocialjustice.Thereisgrowingevidencethatthemostdiversecompaniesarenowmorelikelythanevertooutperformtheirlessdiversepeersinprofitability(Dixon-Fyleetal.2020).Butdiversitydoesn’tmatterjustforbusinessperformance–alackofdiversityinorganisationscreatessignificantreputationalriskindifferentwaysanddamageseverythingfromtalentrecruitmenttoemployeeaffiliationtocustomerrelations.Inresponseorganisationsareseekingtoevaluateandaddresstheirworkingpractices,culturesandorganisationalbiasesasanemergingpriority.Onerecentsurveyindicatedthatover70%ofbusinessleaderssaidtheyhaveneverintheirentirecareersfeltmorepressuretoengagewithsocialjusticeissues(PorterNovelli2020),astheissuesofdiversity,includingdiscrimination,cometodominatethecorporateagenda.Reportingrequirementsrelatingtodiversityandinclusivitymeasuresintheworkplacewillalsocontinuetogrow.In2020theUSSecuritiesandExchangeCommission(SEC)3.Society2.Environment1.Economy5.Workforce4.TechnologyFIGURE7:ThebusinesscasefordiversityinexecutiveteamsremainsstrongSource:Dixon-Fyleetal.202038PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETYapprovedadditionalreportingrecommendationsforpubliclytradedcompanies,includingforawiderangeofhumancapitalindicatorssuchasdiversityandinclusivitymeasures,buttherearecallsforittogofurther(Reuters2021).There’salsogrowinginterestfromtheinvestorcommunitiesasmoretransparencyisdemandedfrombusinessesonhowtheyareaddressingdiversityissuesthroughevolvinginclusivitypractices,includingmetrics.‘Our2019analysisfindsthatcompaniesinthetopquartileforgenderdiversityonexecutiveteamswere25percentmorelikelytohaveabove-averageprofitabilitythancompaniesinthefourthquartile–upfrom21percentin2017and15percentin2014.’Dixon-Fyleetal.2020‘Diversityisanareathatperhapsinthepastwouldhavebeenwelloutsidetheremitofaqualifiedaccountantandprobablywouldn’thavetouchedthefinancefunctionatall,butnowitsabsolutelypartoftheirrole.Ithinkit’sbecauseforsomeorganisations,theaccountantisoftentheonlyprofessionallyqualifiedmemberofaglobalawardingbodythatlaysoutethicalstandardsandguidanceonsomeoftheseprinciples.So,Iactuallythinkaccountantshavearesponsibilityandmoralimperativetostepupandguidetheirorganisationsinadirectionthatweallknowisnecessary.’Talentleadersroundtable‘Whetherit’ssustainabilityordiversityissues,orsomeothernon-traditionalnon-financialareas–Ithinkthere’sgoingtobehugechallengesforaccountantsintheseareas,butalsohugeopportunitiesforaccountantstoreallyplayapowerfulrole.’Talentleadersroundtable3.Society2.Environment1.Economy5.Workforce4.TechnologyTrend13:DemographicshiftschangetalentstrategiesBy2030,theglobalpopulationwillhaverisentoapproximately8.5billionfromitscurrentlevelofapproximately7.8billiontoday(Worldometern.d.).However,populationgrowthisslowingfromabout1–2percentperannumtoapproximately0.5percent(CilluffoandRuiz2019),primarilybecauseoffallingbirthratesandageingpopulations.Inaddition,longevityisincreasing.By2050itisestimatedthatthenumberofpeopleovertheageof65yearswilltripleandthenumberofthoseover80willquadruple,mostlyinmaturemarkets.Theglobalworking-agepopulationisexpectedtogrowatamuchslowerpaceoverthenextdecade,andhalfasfastintheyearsto2030asinthelast15years(ILO2021).Thisisaparticularissueinmatureeconomies,withdwindlingworkforcepopulations,accesstotalentwillbeevenhardertoobtainaseconomiestransitionandskillgapsemergeacrosstheworkforce.Formanymatureeconomies,thisrelativetransitiontoanolderworkforcehasprofoundimplicationsforreskillingandinter-generationalworkforcestrategies.IncountrieswithrapidlyageingpopulationsweLongSlideLoomsforWorldPopulation,WithSweepingRamificationsNewYorkTimes,22May2021Fewerbabies’cries.Moreabandonedhomes.Towardthemiddleofthiscentury,asdeathsstarttoexceedbirths,changeswillcomethatarehardtofathom.Allovertheworld,countriesareconfrontingpopulationstagnationandafertilitybust,adizzyingreversalunmatchedinrecordedhistorythatwillmakefirst-birthdaypartiesararersightthanfunerals,andemptyhomesacommoneyesore.MaternitywardsarealreadyshuttingdowninItaly.Ghostcitiesareappearinginnorth-easternChina.UniversitiesinSouthKoreacan’tfindenoughstudents,andinGermany,hundredsofthousandsofpropertieshavebeenrazed,withthelandturnedintoparks.Likeanavalanche,thedemographicforces—pushingtowardmoredeathsthanbirths—seemtobeexpandingandaccelerating.Thoughsomecountriescontinuetoseetheirpopulationsgrow,especiallyinAfrica,fertilityratesarefallingnearlyeverywhereelse.Demographersnowpredictthatbythelatterhalfofthecenturyorpossiblyearlier,theglobalpopulationwillenterasustaineddeclineforthefirsttime.Aplanetwithfewerpeoplecouldeasepressureonresources,slowthedestructiveimpactofclimatechangeandreducehouseholdburdensforwomen.ButthecensusannouncementsthismonthfromChinaandtheUnitedStates,whichshowedtheslowestratesofpopulationgrowthindecadesforbothcountries,alsopointtohard-to-fathomadjustments.Thestrainoflongerlivesandlowfertility,leadingtofewerworkersandmoreretirees,threatenstoupendhowsocietiesareorganized—aroundthenotionthatasurplusofyoungpeoplewilldriveeconomiesandhelppayfortheold.Itmayalsorequireareconceptualizationoffamilyandnation.Imagineentireregionswhereeveryoneis70orolder.Imaginegovernmentslayingouthugebonusesforimmigrantsandmotherswithlotsofchildren.ImagineagigeconomyfilledwithgrandparentsandSuperBowladspromotingprocreation...(Caveetal.2021(extract))39PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETYmayseeskillsshortagesinparticularareas,oranincreasedfocusonautomationstrategiestoaugmentlabour.Oneoftheothercriticalwaysinwhichorganisationswillbeaffectedbyshiftingdemographicsisthroughglobalurbanisation.In2018,55%oftheworld’spopulationlivedinurbanareas.Thisisexpectedtogrowto60%by2030(MigrationDataPortal2021).Here,thepandemicisaninflectionpointforthinkingdifferentlyaboutthefutureofcitiesandthewaystheyaredesignedanddevelopedinthefuture.Fromatalentperspective,majorcitieshavealwayshadamonopolyonhigh-payingjobsandmetropolisesserveastalentandinnovationhubs.Theirsuccess,orlackofit,inthewakeoftheCovid-19crisiswillhaveanimpactonfuturetalentacquisitionstrategies,particularlyinaworldofworkwhereknowledgeworkers,inparticular,maybemoredistributedawayfrommetropolitanareas.‘Thedemographicsformearegoingtobeahuge,hugechangeoverthenextcoupleyearsjustintermsofwhatweasasocietywantandhowwebehave.Sothat’simpactingonourbusiness,andouractivitythroughourhospitals.Andthat’shavinganimpactonmyteamofaccountantsandhowwesupporttheorganisation.’PublicsectorroundtableTrend14:EducationistechnologicallytransformedAccesstodigitaleconomyskillsandeducationwillbeessentialtobusinessesoverthenextdecadeastheglobaleconomytransformsandthedemandfornewworkplacecapabilitiesemerges.Thetransitiontoremoteworkingandsocialdistancingrequirementshasbeenmadepossiblebygrowinginternetconnectivityacrosstheworld.Thisisalsotransformingeducation,increasingitsaccessibilityandaffordabilitythroughonlinedistribution,althoughsomeregionsoftheworldremainchallengedFIGURE8:ThefutureoftrainingandeducationSource:HolonIQ20213.Society2.Environment1.Economy5.Workforce4.TechnologyinWi-Ficonnectivity.In2020theeducationtechnologymarketsizewasvaluedatUS$89.4bnbutisexpectedtogrowatanannualcompoundrateof19.9%ayearbetween2021and2028(GrandViewResearch2021)(Figure8).Frombite-sizedmodularcoursestointensivelearninginterventionsandthegrowthofplatformssuchasEdX,wecanexpecttoseeincreasinguseofaugmentedreality,virtualreality,gamification,simulationandotherlearningformatsdistributedacrossmobileandotherplatformsinbothformalandinformalsettings.Technologicalinterventionswillhelpindividualsdevelopreal-lifeskillssuchasproblemsolving,criticalthinkinganddecisionmakingbecausethelearningisframedrelevantly,inthecontextoftheproblemorissuethatrequiressolution,andthismakeslearningmemorable.Smarttechnologieswillbeusedincreasinglytosupporteducationalassessmentsandevaluationanddesignofquestions,freeingteacherstofocusoncreativelearningcontent.Also,bygivingteachersnewtoolstotracklearningoutcomesandhelplearnerstolearnforthemselves,theroleoftheeducatorwillshiftincreasinglytoonethathelpsfacilitateself-learningratherthanpushingknowledgecontent.40PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETYTrend15:NewbusinessmodelsproliferateChangingsocietaldemandsandtheriseofstart-upculturesenabledbyfallingtechnologycostsandbetterconnectivityhavecontinuedtodrivethedevelopmentofnewbusinessmodels.Therearegrowingchangesinhowbusinessesarefunded,newemergingownershipmodels,increasinginterestinstart-upsandentrepreneurialism,andsignificanttransformationofbusinessvaluechains,withneworganisationdesignsbringingdifferentwaysofcreatingsustainablevalueforthefuture,acrosssociety(Figure9).There’salsocontinuedgrowthinpeer-to-peerplatformsandthegrowthinthe‘sharingeconomy’continuestodisruptindustries,supportedbytheexplosioninsocialmedia,smartphoneand‘app’developments.YetinthewakeoftheCovid-19crisisthe‘isolationeconomy’(Mehta2020)hasdevelopedtoo:aneconomybasedontheprinciplethataswelooktothefuture,evenbeyondtheendofthepandemic,peoplewilltravellesstoundertaketheir‘everyday’activities.‘Intheisolationeconomy,youdon’tgooutforthings;theycometoyou’(Mehta2020).Thereareevermorefundingoptions,fromstart-uploansandbusinessacceleratorschemes,growthincrowdfundingplatforms,businessangels,venturecapital,governmentgrants,trade,importandexportfinance,peer-to-peerfinanceandbusinessfinanceloansspecificallyforunder-representedgroups,asgovernmentsandpolicymakersacrosstheworldcontinuetofocusonbroadeningaccesstofinanceandintroducingnewpolicyinitiativesandmeasures,suchasacceleratorsandincubators,tosupportinnovativestart-ups.‘Ithinkanotherbigthingwhichisprobablyanoutcomeofthetechnologyisthatbusinessmodelswillcontinuetochangerapidly.’Corporateandbusinessreportingroundtable‘Withsignificantchangesinbusinessmodels,theregulatoryreportinglandscapewillneedtocatchup.’CorporateandbusinessreportingroundtableFIGURE9:CharacteristicsofbusinessmodelsofthefutureSource:ACCAandCFA20193.Society2.Environment1.Economy5.Workforce4.Technology1.Multi-layered–possesstheabilitytohavemanydifferentcomponentscometogetherandcooperatetocreatevalue.2.Participatory–anexpectationofparticipation,overtransactionalconsumptionalone,meansthatorganisationscanrethinkhowtheyinteractwithcustomersandotherstakeholders.3.Platform-ready–onlineplatformsprovideanopportunitytounlockvaluethroughbuildingcommunities,empoweringindividualsandbenefittingfromnetworkeffects.4.Multi-capitalist–understandingthatvaluecreationthroughabusinessmodelisnotjustcomposedofbyfinancialcapitalbutalsoincludesothercapitals,includingintellectual,natural,relationalandmanyothers.5.Purposeful–engenderingasenseofpurpose–andcommunicatingthesesincerelytoemployees,customersandpartners–buildsresilienceandlong-termvalue.6.Datasensible–recognisingtheimportanceofdata,itssensitivityanditsowners’rights,includingbeingportabilityready,iskey.7.Boundary-testers–goingbeyondperceivednaturalboundariestocreateenduringvalueinareaspreviouslyconsideredbeyondanorganisation’sdomain.8.Open–opennessallowsformoresharingandcollaborationandthepotentialtobenefitbycontributingtoanecosystemandtobuildonknowledgeandlearningofothers.9.Potentialenhancing–providingtoolsforpeopleandplacestorealisetheirpotentialcreatesoutsizedreturnsforall.10.Fairplayers–ethicsisattheheartoforganisations.Theneedforsoundbusinessethicsisevenmoreacuteinadigitalenvironmentwherealackprofessionalcompetenceandduecarecancauseethicalissuestoemergeinunexpectedplaces.11.Convening–conveninggroupsinavirtualorphysicalspace,oraroundanidea,andbuildingacommunitythatpeoplevalue,contributestosocialandcivicsystems.12.Restorative–beingabletofix,renewandrepairisnotonlymoreefficientbuthasthepotentialtounlocknewsourcesofvalue.‘Withtheemergenceofnewbusinessmodels,theworkforceneedstoacquirenewskills.Ithinkthesetwoarehandinhand,andquiteimportantdriversforthenextdecade.Inthenext10years,therewillbemorestart-upsbeingestablished.Theywillneedthetraditionaltechnicalskillsandbusinesspartneringskills,butalsochangemanagementskills,becausethoseorganisationsarechangingreallyrapidly.’Leadersoftomorrowroundtable‘Climatechangeandsocialchangewilldriveadelugeofregulation,itsgoingtodrivealargenumberofcompaniestoafundamentalchangeoftheirbusinessmodel,itsgoingtodrivealargenumberofcompaniespotentiallyoutofbusiness,andthesearecompaniestodaythatarehighlyvalued.’WesternEuroperoundtable41PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETY3.Society2.Environment1.Economy5.Workforce4.TechnologySPOTLIGHTON:SpacetoGrow:NewmodelsofbusinesssupportACCA’sreportSpacetoGrow:Newmodelsofbusinesssupportexploreshowalternativebusinesssupportmodels,suchasacceleratorsandincubators,arebeingusedtoallowmoresmalltomedium-sizedenterprises(SMEs)andstart-upstoachieverapidgrowthandsupporttheirrecoverypostCovid-19.AboutacceleratorsandincubatorsIncubatorssupportbusinesscreationanddevelopment.Theyaretypicallyphysicalspacesthatprovideadditionalservicessuchastrainingandmentoringforentrepreneurs,accesstonetworksand,sometimes,specialistequipmentorfacilitiessuchaslaboratories.Theycanbenon-profitinstitutionssetupbyuniversities,governments,agenciesordonors,orcommercialenterprisessetupbyprivate-sectorcompaniesandinvestorgroups.Acceleratorsfocusongrowthandhavehistoricallyputgreateremphasisonfunding,althoughelementssuchasnetworking,mentoringandmarketaccessareincreasinglyseenasequallyimportant.Akeyfeatureofacceleratorsisthattheyofferhighlyselectiveandtime-limitedprogrammes.AcceleratorsandincubatorsarecontinuingtochangethebusinesssupportlandscapeDependingonthecountry,incubatorsandacceleratorscanprovidegeneralbusinesssupportandaccesstofinancetoawiderangeofstart-upsandsmalltomedium-sizedenterprises(SMEs),orin-depthsupportconcentratedonspecialisedindustryverticalsandsectors.Theirgoalsdifferbetweencountriesandregions:intheemergingmarketstheaimmaybeprimarilytofosterentrepreneurshipasanalternativetoemploymentandencouragebusinessesthatwillthemselvescreatejobs.Ortheymayintendtocreate‘clusters’ofnewenterprisesandpromotethecountryasatargetformoreinwardinvestment.Inmorematuremarkets,suchastheUK,incubatorsandacceleratorsmayfocusmorenarrowlyonveryhigh-growthsectorsandcandidates.Differentgoalshavedifferentpatternsofrisk:ahighfailureratemaybeacceptablewhenthegoalistohelpinvestorstofindthenext‘unicorns’,lesssowhenitistocreateagenerationofresilientandself-supportingentrepreneurs.(Zaronina-Kirillova2020)42ThefutureofauditPROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCASESTUDY:THEFUTUREOFAUDITAcrossmajorjurisdictionsintheworldthereremainsadeficitoftrustinthewaylargecompaniesarerun,concernsoverhoworganisationsarebeingeffectivelygoverned,andmorechallengestohowcurrentauditpracticesseektoprovideadequateassuranceovertheachievementofcompanyperformance.Theneedtorestoretrustinauditandcorporategovernance,andthebroaderaimofimprovingthewiderfinancialreportingsystemisintegraltoensuringcapitalmarketsoperateefficiently.Proposalsbeingdevelopedarewiderangingandwillpotentiallyhavesignificantimpactsonthefutureofauditingfirms.Theseincludebutarenotlimitedtodefinitionsandthescopeofpublicinterestcompaniesthatrequireastatutoryaudit,thedefinitionandscopeofauditversuswiderauditingservicesparticularlyinlightofthegrowingneedforwiderassurancebeyondthefinancialstatementsaudit,competitionandchoiceissuesintheauditmarket,moregovernancespecificrelatedissuessuchaslegislative,regulatoryandoversightissuesinrelationtodirectorsresponsibilities,newreportingrequirementsoverinternalcontrolframeworksandspecificissuesinrelationtotacklingfraud.It’stooearlytotellexactlywhattheconclusionsoroutcomesarefromthesedevelopments,butthesedevelopmentscouldpotentiallyhaveasignificantimpactonthemajoraccountingfirmsauditingpublicinterestentities,hopefullywiththeoutcomeoffurtherimprovingconfidenceandtrustacrossthecorporatereportinglandscapeinthefuture.‘Abigimpactoverthenextfivetotenyearsinauditwillbethenewregulatoryenvironment.Auditreformwillimpactgovernanceoforganisations,governanceoftheauditfirmsanditwillhaveamajorimpactontheprofessionaswellashavingpotentiallyabigimpactonthebusinessmodelsofthelargestaccountingfirms.’WesternEuroperoundtableOneofthekeynarrativesfromchangingsocietalneedsaregrowingdemandsfromstakeholdersforincreasedtransparencyandaccountabilityonorganisationperformance.43PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETY3.Society2.Environment1.Economy5.Workforce4.TechnologyKEYDATAPOINTSTowhatextentdoyoubelievetheemergenceofnewbusinessmodelswillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpact,10=verysignificantimpact)Towhatextentdoyoubelievepeopleneedingtoworklongerwillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpact,10=verysignificantimpact)Towhatextentdoyoubelievethediversityandinclusivityagendawillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievethedemandforethicalleadershipwillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievechangesintheaccessibilityandcostofhighereducationwillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Emergenceofnewbusinessmodels7.93Peopleneedingtoworklongerforﬁnancialreasons7.13Thediversityandinclusivityagenda7.03Thedemandforethicalleadership7.61Changesintheaccessibilityandcostofhighereducation7.0744Howdriversofchangeinsocietyimpactthesustainablebusinessandfinanceprofessionalofthefuture(someexamples)nEthicalleadership:Theworkofthesustainablebusinessandfinanceprofessionalofthefuturewillbeessentialtoensuringintegrityandethicsintheorganisationinthefaceofgrowingstakeholderexpectations.Fromauditandassurancetokeyfinancialmanagementroles,theactivitiestheyperformareessentialtoprotectingthepublicinterest,ensuringappropriategovernanceinorganisationsanddrivingtransparencyonperformance.(Furtherreading:ACCA2020a)nNewbusinessmodels:Emergingformsofbusinessmodelspresentbrilliantopportunitiesforfinanceprofessionalstodrivethefutureeconomy.Fromentrepreneurialopportunitiesinstart-upsorsupportingorganisationsthataretransformingtheirbusinessesandorganisationdesigntomeetemergingsocialandenvironmentalvalue-creationneeds,thefinanceandbusinessskillsthatsustainablebusinessandfinanceprofessionalsbringwillbeinvaluable(Furtherreading:Zaronina-Kirillova2020)nInclusivity:Financeprofessionalswillincreasinglyworkinorganisationsthatunderstandthemoralandcommercialimperativesforinclusiveworkforces.Agreaterfocusoninclusivitywilldriveinnovation,diversityofideasandchangehowtheyexecutetheirworkengagements.Butthesustainablebusinessandfinanceprofessionalofthefuturemayalsohaveanincreasingroletoplayincapturing,measuringandreportingondiversityandinclusivitypractices,ashumancapitalmanagementandreportingareincreasinglyrequiredacrossdifferentreportingjurisdictions.(Furtherreading:Webb2021)nAccountancyeducationexpands:Technologyandthegrowthoftheinternetareaffordingnewopportunitiesforeducationandlearningandpotentiallyopeningupaccesstotheaccountancyprofessioninemergingmarkets,enablingbusinessestotapintonewsourcesoftalent.Thegrowthofnewed-techopportunitiesandevolvingteachingandassessmentpracticesthroughtechnologycouldtransformfutureeducationprovisionandhelpdriveinclusivity.FurtherrelatedreadingfromACCA:PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:3.SOCIETY3.Society2.Environment1.Economy5.Workforce4.TechnologyAccountants,purposeandsustainableorganisationsThisreportexplorestheroleoftheaccountancyprofessionanditspurposeinthefuture.LeadinginclusionAnexplorationofdiversityandinclusivity,andtheroleoftheaccountancyprofession.SocialandenvironmentalvaluecreationAnexaminationoftheroleofbusinessinrethinkingvaluecreationandtheriseinimportanceoftheESGagenda.45PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGYMobiletechnologiesandrapidaccesstoinformationhavetransformedglobalconnectivityandgivenunprecedentedopportunitiestoaccumulateknowledgefast.Thispresentsnewchallengestoorganisationsasstakeholdersdemandtransparencyandrapidlysourceinformation,butitalsounleashesnewopportunitiesfororganisationstoconnectwiththeircustomers,employees,andotherstakeholdersacrosstheglobe,transformingtheirbusinessoperationsinthe‘digitalfirst’economy.TheCovid-19crisishasbeenasignificantacceleratorfororganisationaltechnologyadoption,anddigitalwilltransformglobalmarketsandopenfurtheraccesstoneweconomiesafterthepandemic,aswelookforwardoverthenextdecade.Critically,thisisthedecadewheretechnologiesfromIoTtoautomation,fromemergingAIandmachinelearningtocybersecurity,willbeincreasinglyblendedasorganisationslooktore-designtheirtechnologycapabilitiestomeetnewchallenges,exploitemergingopportunitiesandintegratetheirbusinessmodelprocessesaroundcustomerjourneys.Hyperconnectivitypossibilitiesaretransformingas5Gexpandsandnewplatformsandcommunicationtoolsprovideevermoresophisticatedwaysofconnectingandsharing.Computingpowerisexponentiallyexpandingasedgecomputingbringsnewstorageandspeedofaccesspossibilitiesfordata.Theexpansionofroboticautomationtechnologiescontinuestodriveoutroutineworkrapidlyandafractionofthepreviouscost.Amultitudeofemergingtechnologiesandanalyticstoolsaretransformingtheexecutionofbusinessanalysis,combininghumanskillswithevermorecapabledataminingcapabilitiesandcapitalisingonthepredictedgrowthindataworldwidetoover180zettabytesby2025(Statista2021).Asorganisationsbecomemorecustomer-anddata-centric,digitaltransformationandthedevelopmentofthedigitalcoreisenablingbusinessesandfinanceteamstoaccessever-widerdatasourcesmoreefficientlyinrealtimetodriveenhancedbusinessintelligence.4.Technology4.Technology3.Society1.Economy2.Environment5.Workforce46PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGYTrend16:DatasphereexpandsfurtherDataistransformingglobalsociety,withthegrowthoftheinternetdrivingevengreaterconnectivity.Morethan60%oftheworld’spopulationisnowonline,takingthetotalnumberofglobalinternetusersto4.72bnbythestartofApril2021and4.33bnactivesocialmediausers(Kemp2021),thoughconnectivitychallengesremaininemergingmarketswithconnectivity.Therapidgrowthinsocialmediaplatformssuchastwitter,Pinterest,WhatsApp,WeChat,tik-tok,Instagram,andYouTubereflectshiftingconsumerpreferencesforseekingtoacquirecontentandaccessinformation,providingnewchannelsfororganisations.Theamountofdatacreatedoverthenextthreeyearswillbemorethanthedatacreatedoverthelast30years,andtheworldwillcreatemorethanthreetimesthedataoverthenextfiveyearsthanitdidoverthelastfiveyears(IDC2020).Organisational‘datalakes’havecontinuedtoexpandasbusinessesseekoutnewwaysofmanagingbigdatamoreeffectively,givingtherequiredflexibilityinaccessingstructuredaswellasunstructureddataand,increasingly,non-financialdatasuchasthatfromsocialmedia,videosandpictures,GPSandsensors(Figures10–13).Allthisshouldenablethemtomakefaster,data-driven,businessdecisions.Businessesareinvestingmoreinbuildingdata-richtechnologyplatforms(DeSmetetal.2021)astheytransformtheirbusinessmodels,increasinglyshiftingtoamixofon-premises,legacyandpublicandprivateCloudstoenhancetheirtechnologyinfrastructures.Butdatagrowthhasplacednewdemandsonorganisationaldatagovernancestrategiesasorganisationsstrivetodeveloponesourceofdatatruth,andprovideinformationthatisaccessible,timely,accurate,controlled,trusted,consistent,legalandlinkedtothevaluedriversthattrulymatterinthesustainableorganisation.4.Technology3.Society1.Economy2.Environment5.WorkforceFIGURE10:Volumeofdata/informationcreated,captured,copied,andconsumedworldwidefrom2010to2025(inzettabytes)2010050100150200Datavolumeinzetabytes201120122013201420152016201720182019202020212022202320242025‘Myclientsarestartupsandtheyneedaccesstoreallygooddata.ThereallyusefulrolefortheSMPistohelptheirclientunderstandthebusinessinthefuturethroughdata.’Intervieweequote‘Wehavetoliveuptoexpectationsasaprofession.Sotheaccountantneedstoembracedataanalyticsandunderstandbigdata.Weneedtodemonstrateourabilityinthisspace.’Intervieweequote‘Someofthedatathataccountantsaregoingtohandleisgoingtobelessstructured–it’llbemoreunstructureddatathatyou’relookingatintermsofhelpingthebusinessmakedecisionsandforecastproperly.’SMEglobalforum‘Ithastobequalitydata.Youcannottrustthedatablind.Youneedtoaskdoesthedatamakesense.’Intervieweequote‘Havingalotofdatawithoutbeingabletounderstandhowthedatainterrelatesisreallymeaningless–wemustbeabletounderstandandinterpretthedataandfilterthecorrectamountofdatatobeuseful.’ASEANpracticeleaders‘Iwasdiscussingthedatatopicwithmycolleaguestwodaysago.Withthedeploymentofnewtechnologies,thedataweareusingisincreasinglynonfinance-relateddata.Ouranalysisisnotlimitedtofinancialdata.’Chinaroundtable‘IseeaccountantswritingSQLqueriestogetdatabecausebusinessesareincreasinglydigitalized.Iseefinancialanalysts,notjustcalculatingvarianceanalysisinExcel,butcreatingSQLdatatables,whichcalculatethosevariancesdailyfromthedataflows.Sothesedigitalskillsareindemandmoreandmore.’CorporateandbusinessreportingroundtableSource:Statista202147PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGYFIGURE12:ThefourVsofdataFIGURE13:Accelerationofnewtechnologiesandplatforms4.Technology3.Society1.Economy2.Environment5.Workforce(Source:ACCA2021c)1998:Google2003:MySpaceSkype2008:Airbnb2014:ApplePayAmazonAlexa1999:MSN2004:Facebook2009:Whatsapp2015:AppleWatch2000:USBFlashDrives2005:YoutubeAmazonPrime2010:iPadFacetime2016:TeslaPokemonGO2001:iPodWikipedia2006:Twitter2011:Siri2017:Fortnite2002:MicrosoftXboxLiveLaunched2007:DropboxAppleTVAmazonKindleiPhone2012:Tinder2018:TikTok2013:3DPrinterDeliveroo2019:Airpods1998199920002001200220032004200520062007200820092010201120122013201420152016201720182019VARIETYVELOCITYVERACITYVOLUMEVARIETY:DifferentformsofdataareexpandingVOLUME:ScaleofdataisincreasingVELOCITYOFDATA:IncreasingduetogrowingnetworksandsensorsVERACITYOFDATA:Inquestion,withgreateruncertaintyaboutthequalityofdata(Source:Evettetal.2020)Source:WeAreSocial2021FIGURE11:UseofdigitaltechnologyaroundtheworldTOTALPOPULATIONUNIQUEMOBILEPHONEUSERSINTERNETUSERSACTIVESOCIALMEDIAUSERS7.83bnURBANISATION:56.4%5.22bnvs.POPULATION:66.6%4.66bnvs.POPULATION:59.5%4.20bnvs.POPULATION:53.6%48PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGYTrend17:CloudtransformsscalabilityThetransitiontothe‘digitalcore’,wherebusinessesseektotransformandcentralisemuchoftheirenterpriseinformationtechnologyinfrastructureontheCloud,isgivingnewscalability,flexibility,andstandardisationwithoptionsforintegratingandonboardingnewtechnologies.Anavalancheofbusinesstechnologytransformationinitiativesanddevelopmentsinvirtualworking,whichdemandsecuredesktopandmobiletechnologypractices,aswellasacceleratingtrendsinareassuchasquantumcomputingandedgecomputing,andmassivedatagrowthtrajectories,arefurtherpropellingthetransitiontoCloud.By2024it’spredictedthattheglobalCloudapplicationsmarketwillhaveavalueof$US166.8bnfrom$US131.65bnin2020(Statista2020)asthemarketgrows.Newserviceproviderswillcompeteagainsttraditionallargeenterpriseresourceplanning(ERP)vendorsasbusinessesseektointegrateemergingcognitivetechnologiesintothedigitalcorethrough‘plugandplay’micro-servicesandapps(Figure14).WithCloudadoptionaccelerating,wecanexpecttoseenewpartnershipandcollaborationopportunitiesforgingdifferenttypesofbusinessmodels,newproductdevelopments,reworkedglobalsupplychainsandcross-industrycollaborationsthatopenupnewmarketstopartnersandhelpprovidebettercustomerservice.Inparticular,thereisagrowinginterestin‘industry-clouds’thatbringtogetherCloudservicesandrelatedtoolsthatareoptimisedforuseinparticularindustries.Forthesebusinesses,transitioningtotheCloudmayberelativelylowriskasconcernsinrelationtospecificgovernance,legislationandregulatoryissuesarespecificallyaddressedthroughthetechnology.‘Ithinkpeoplearebecominghyperawareofcybersecurity,andadoptingthatintheirtechnology,buthavingdifficultyexplainingthattotheirclientbase,aswellasteachingandtrainingthemaroundit.’IntervieweequoteFIGURE14:Cloud-basedapplications:thedigitalcore4.Technology3.Society1.Economy2.Environment5.WorkforceBigdataandanalyticsDigitalcoreInternetofthingsAIandmachinelearningChatbotsandselfservicesHumancapitalBusinessplanningCustomersandsalesProcurementBest-of-breedsolutionsSupportingapplicationsSource:Webb2020‘Theorganisationismovingmoredeploymentstothecloud,andweareinvolvingthirdpartiesinimplementationaswellassharingthecloudspacewithothercompanies.Thispresentsdifferentriskexposures,andprofessionalaccountantsoperatingintheriskmanagementspaceneedtoawareofthis.’USAroundtable‘Lastyear,weinitiatedcentralisedauditprocessesbecauseoftheorganisationdatathatisnowavailableonthecloud.Ourtargetfornextyearwillbetoundertakeabout90%ofourauditsremotely.It’smoreeffectivebothforclientsandforauditors.’ASEANCEOroundtable49PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGYTrend18:SmarttechnologyacceleratesWithautomationtransitioningfast,organisationsacrossthepublicandprivatesectorarefurtherseekingtocutcost,optimiseandconnectprocesses,driveefficiencies,increasethespeedofdecisionmaking,deliverflexibility,mapbusinessactivitiesandautomatecontent-gatheringacrossmultiplesystems,aswellastakingtheroutine,transactionalprocessingoutofworkflowstofreeupvitalresourcethatcreatesvalue.Thereareemergingdevelopments(Figures15and16)inareassuchasopticalcharacterrecognition(OCR),whichrecognisesdifferenttypesofnotationusingadvancedAItechnologies.Forward-lookingorganisationsareincreasinglyrelyinglessonnon-cognitiveroboticstechnologiesandinsteadshiftingtoaneraof‘hyperautomation’(Gartner2021)withconnectedautomationstrategiesincorporatingtheuseofemergingcognitivetechnologiessuchasAIandmachinelearning.Theadoptionofcognitivetechnologiescontinuesatpace,reshapingworkpossibilities,transformingproductioncapabilities,reimagininginsightopportunitiesandblurringtheworkdivide.Machinelearningcapabilitiesinthefuturewillacceleratefurtherthroughdevelopmentsinquantumcomputing,makingdataprocessingandanalysisfaster.Analysiswillbefurtherenrichedbydevelopmentsindeeplearning,asubsetofmachinelearningthatisincreasinglycapableofinterrogatinghugeandgenerallyunstructureddatasetsoftext,videos,andspeech.Andthesetechnologicaldevelopmentsaresupportbythegrowthoftheinternet,withrecentresearchsuggestingthat5Gwillcovertwo-thirdsoftheglobalpopulationinsixyears(Ericsson2021).ThisenrichedcapabilityaffectsboththehugegrowingmarketinAICloudservicesofferedbysomeoftheleadingorganisationsintheworldsuchasAmazon,MicrosoftandGoogle,butisalsoincreasinglyatthe‘Edge’withtheexpansionoftheIoTandevermoremillionsofdevices.Giventheincreasingaccessibilityof4.Technology3.Society1.Economy2.Environment5.WorkforceSource:ACCAandEY(2020)FIGURE15:ThedigitallandscapeofthefutureBiometricIdentification(ID)Facialandvoicerecognition;digitalﬁngerprintingIDveriﬁcationusingbiologicalorpersonaldatacharacteristicsRoboticProcessAutomation(RPA)Automationofrules-basedprocessesusingbotsProcessessuchasorder-to-cash,purchase-to-payandrecord-to-reportAI–Machinelearning;NaturalLanguageProcessing(NLP)Statisticalanalysesforadvancedpatternrecognitionindata;analysisofunstructured(text)dataTransactionfraud/anomalydetection;analysisofcontractsatscaletoextractrelevantkeywordsandclausesofinteresttoanauditInternetofThings(IOT)Deviceswithsensorsthatcanconnecttotheinternet(andtoeachother)Inventorymanagementwithsensorssendingdataaboutthe‘state’ofanitemegtemperature,locationtoCloudforanalysisandoptimisationBlockchainDecentralisedandimmutabletrustedrecord(ledger)ofeventsSecureloggingofdetailsaboutgoodsacrosssupplychaintoconﬁrmtheirauthenticity,originsandreal-timelocation(relatestoIOTexampleabove)AISupercomputingHighperformancecomputing(HPC)fordistributedmachinelearningonmassivesetsofbigdataIndirectsystemicbeneﬁtsfromscalableprocessingcapabilityforalgorithmstobereadyforthevolumeofdatathatisincreasingexponentiallyWiFi6Next-genwirelessconnectivityImprovednetworkspeedandconnectivity,particularlyifmultipledevicesconnectedtoitorheavyusethroughhomeworkingEdgeInferenceChipRunningAImodelsandhighlevelsofcomputationattheEdgeratherthansendingdatabacktoCloudforprocessingPerformAItaskseglinkedtoadvanceddataanalysisonmobiledevicewithoutneedingtobeconnectedtotheinternet5GNext-gencellularnetworksFasterdownloadsandabilitytoconnectmultipledevicestothenetworkExtendedReality(XR)Fullsensoryexperiencecombiningrealandvirtual;humanandmachineMorerealisticcorporatetrainingandsimulation-basedlearningCURRENT(0–1YEAR)1–3YEARS50PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGY4.Technology3.Society1.Economy2.Environment5.WorkforceSource:ACCAandEY(2020)5Gtechnologiesandincreasedprocessingpowerthroughtechnologiessuchasquantumcomputing,it’sgoingtobemoreandmorepossibleforAItechnologiestooperatedirectlyonconsumerandbusinessdevices.Theexpandingroleoftechnologyisalsoinfluencinghowfinancialvalueistransferredacrosstheeconomy,whetherthisisthroughthematuringoffintechapplications,theexplosioninthenumberofcryptocurrencies,andtheinterestofcentralbanksinexploringdigitalcurrenciesinthefuture.‘WehaveseenamassadoptionofAIandmachinelearning.’SriLankaroundtable‘TechnologyhasacceleratedintheCovidworld,butIdothinkthatpacewillprobablycontinue.Weareseeingalotmoremobiletechnologycomingintoplay.Theuseofappsisgettingquiteprolific.’SMEglobalforum‘Therereallyisn’tenoughemphasisonhowimportanttechnologyisgoingtobebecausenowforusitsalldifferenttypesoftechnology.Andthat’ssomethingthatwefoundreallydifficulttomakesurethattheteamareuptospeedwithtechnologyandthenthetechnicalknowledge,andtheintertwiningofthetwo.’SMEglobalforum‘Buttheaccountantshouldbeabletopersuadetheirbusinessthatmovingtothemostmoderntechnologysystemsgivesusthebestanalysisofriskandthebestcontrolenvironments–andtechnologyisnotjustaboutsavingtime,it’sabouthelpinguspredictthefuture.It’sthefutureofeverything,notjustfinance.It’scommercial.It’severything.’UKroundtable‘Formethekeychangecertainlyinthemiddleofthepandemicishowtechnologyhascatapultedeveryoneofusfiveyearsintothefuture.Weareoperatingatalevelperhapsweneverimaginedatthisstage.’Expertgroup–performancemanagementFIGURE16:TimelineofemergingtechnologiesBrain-ComputerinterfaceCommunicationbetweenneuralelectricalsignalsandexternalprocessingunitsAbilityforthosewithdiseasessuchasAlzheimer'sthatimpairverbalcommunicationtocommunicatethoughtsthroughnervesignalsAutonomousdrivingIndependentmachinecontrolforcarsandothervehiclesSelf-drivingtaxisandtransportationapplicationsembeddedinsmartcityinfrastructureArtificialHumanAssistantItsappearanceandbehaviourarelikeahuman,withtheabilitytolearnexpressions,skills,reactionsandexpressemotionMachinecancommunicatewithpeopleinnaturallanguage,completetasksassignedbyusers,orassistincomplexserviceswithhuman-likeresponsesVIoT(VisualInternetofThings)Basedonvisionrecognition,AugmentedReality(AR),bigdataand5G,VIoTenablessmart‘things’tocapturevisualdata,andcombinewithadvancedanalysisacrossstructured/unstructureddatatypesPhotosofcarnumberplatescapturedinreal-timecombinedwithnearinstantaneousanalysistoestablishownership/usagerightswithdataprocessingattheEdgeQuantumcomputingOrder-of-magnitudehigherlevelsofprocessingbeyondcurrentsupercomputersProcessingAIalgorithmsatascaleandspeedgreaterthansupercomput-ersandinamoreenergyefﬁcientmanner;quantumresistantencryptionforcybersecurityasquantumcanbreakexistingcryptographicprotocolsusedforsecuringdata6GHighercapacitycellularnetworksIndustrialusecasesforIOTdevicesSatelliteinternetInternetaccessviatransferofinformationusingsatellitedishFullglobalcoveragetoenableinternetaccessinareaswhereitisdifﬁculttosetupphysicalcables3–5YEARS>5YEARS512Cybersecurityventure20203<https://cybersecurityventures.com/hackerpocalypse-cybercrime-report-2016/>PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGY4.Technology3.Society1.Economy2.Environment5.WorkforceTrend19:CybersecurityisbigbusinessOverthe2020scybersecuritywillbebigbusiness,withcybercrimeexpectedtogrow15%overthenextfiveyearsreachingUS$10.5trillionby2025,representingthegreatesttransferofwealthinhistory.2,3FromDarkWebsaleofdatathroughtomalware-relatedcybersecuritythreats,ransomwareor‘crypto-jacking’thereisgrowingpressureonorganisationstoresponsetocyberthreatseffectively.AsmanybusinessesshifttothepublicCloudandbusinessprocessesbecomeincreasinglyintegratedthroughmanagedservicessuchas‘softwareasaservice’,cybersecuritythreatsincreaseandorganisationswillplacegreaterrelianceonexternalCloudproviders,eventhoughneitherthereputationalrisknortheensuingfinancialdamageareoffloadedtothesesuppliers(James2019a).Thisplacesnewpressureonorganisationstounderstandwheretheirdataisstored,howitisprotectedandhowthisisassured(James2019a).Inparticular,agrowingareaofcyberthreatfororganisationsissituationsinwhichmultipleorganisationsandinstitutionsacrossasupplychaincanallbecompromised.TheeverincreasingnumberofIoTdevicestowhichorganisationshaveaccessoftendonothavethesametechnologicalsecurityprotocolsbutnonethelessareincreasinglyconnectedtoenterprisenetworks.Thisraisesnewcybersecuritythreats,asdoesthetransitiontohybridworking,whichisnaturallychangingthedynamicofthecybersecuritythreatorganisationswillfaceinthefuture.‘Itmaynotbeeasyforaccountantstolearnaboutcybersecurity,butthat’sareality.ItisexpectedfortheITauditorsandtheFinancialauditorstounderstandthatrisk.’ASEANpracticeleaderroundtableFIGURE17:Technologieslikelytobeadoptedby2025(byshareofcompaniessurveyed)Source:WEF2020a‘Youhavetoinvestincybersecurity–wehavetoinvestinasecureplatformthatsecuresourdata.’Corporateandbusinessreportingroundtable‘Withworkingfromhome,cybersecurityhaschangedthewayweareundertakingourroles.’Leadersoftomorrowroundtable52PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGY4.Technology3.Society1.Economy2.Environment5.WorkforceSpotlighton:CyberandtheCFOACCA’sCyberandtheCFOreportexplorethegrowingimportanceoftheroleoffinanceteamsincybersecurity.Cyberriskisoneofthemosttalked-aboutbusinessrisksItisvitalthattheCFOplaysaleading,ifnottheleading,roleincybersecurity,especiallyinsmallerorganisations.Itisnolongerpermissibletobeabystanderorsimplytodelegateresponsibilitytoothers.Anditispotentiallydisastrousforthefinanceteamtobeignorantofthecyberriskandoftheirorganisation’sabilitytorespond.Whileitisencouragingthatboardsnowseecybersecurityasasignificantbusinessrisk,thereisadangerthatthisperceptionmaybeinterpreteddifferentlyacrosstheorganisation.IfIT,operationsandfinanceviewcybersecurityonlythroughtheirownprofessionallenses,thenthemostsignificantthreatsmaynotbeaddressed.Cyberattackerscantargetmanyareasofanorganisation,butthedangersareultimatelymeasuredinfinancialterms:CFOscannotignorecybersecuritysimplybecauseitisacomplexissueoutsidetheirareaofexpertise.Indeed,itisonlywiththeCFO’shelpthattheorganisationcanquantifyandmanagetheriskofacyberattack–eventhoughtheCFOmaynotberesponsibleintheorganisationitself,itisthroughtheirwidernetworkofrelationshipswithcustomers,suppliersandotherstakeholdersthattheyhavearoletoplay.TheCFOhastheskillsandtheoversighttobeabletotakeamuchbroaderandlonger-termviewofthefinancialimpactofanattack,lookingbeyondtheimmediateissuesofdatalossandoperationaldisturbancetoreputationalandregulatorylossesandtheeffectonshareholdervalue.Asthecostofdefendingtheorganisationagainstcyberattacksmounts,itisonlybyquantifyingboththecyberriskandtheorganisation’sriskappetitethatthechiefexecutiveofficer(CEO),togetherwithmembersoftheboard,canensurethatresourcesaredeployedeffectively.TheCFOisoneofthenaturalcustodiansofdata,andincreasinglyresponsibleforassessingitsvalueandmanagingitslifecycle.Financeisnotonlythenaturalpointthroughwhichdataflowsinanorganisationandisreportedon;itisalsoresponsibleforsomeofthemostsensitiveandvaluabledatatheorganisationpossesses.TheCFOwillplayakeyroleinidentifyingtheinformationthatitismostimportanttoprotect.(ACCA,CAANZ,MacquarieUniversityandOptus2019)Trend20:CollaborativetechnologychangesconnectivityAsorganisationscontinuetotransformtheirbusinessmodels,centringthemoncustomerjourneysorpublicserviceoutcomesinthefaceofhypercompetitivefast-movinganddisruptedmarkets,they’rehavingtoadapttheirtechnologicalcommunicationinfrastructuretosupportthesechanges.Newemergingcollaborationtoolsareaffordingbusinessleadersnewopportunitiestomixandmatchemployeecapabilitiesandconnectwidelylocatedpartsoftheworkforcetotapintotalent.ThereisgrowingrelianceontechnologicalapplicationssuchasZoom,TeamsandSlacktoconnectinstantlyandgetbusinessdone.Connectivityisaffordedthroughthewideravailabilityof5G,withsomeorganisationsgoingasfarastosuggestthatemployeescanworkathomeforeverinthefuture(Paul2020).Thecostsofcollaborationtechnologiesaretumblingasteamstructuresarereconfigured,andnewemergingcommunicationplatformsandself-serviceapplicationsareenablingteamsacrosstheworldtoconnect,shareandexplore,changingeverythingfromthecultureoforganisations,thewaysthatemployeescanbeeffectivelyengaged,andhowbusinessleaderscommunicate.‘Ithinktheissueofcollaborationissoimportant,andtoolssuchasMicrosoft,Skype,Zoom,andsoonaregreat.Butcollaboratingthroughthesetoolsmaybemorechallengingwithmulti-generationalworkforcesandworkingfromhome.’Leadersoftomorrowroundtable‘Thetechnologytodayisquiteoverwhelming.Whenyouwalkintoabigorganisationsyouaredealingwithsomanysystemsinordertobringthingstogether,anditsnotalwaysasintegratedasitshouldbe.’Africaroundtable‘We’vegotpeopleinBudapest,andwe’vegotpeopleinNevada,USA.Sowe’vegotextremesoftimezones,workswell,itworkswell.Andwe’vegotdifferentwaysofcommunication,we’vegotyou,we’vegotWhatsApp,we’vegotjabber,we’vegotWebEx,we’vegotteamschat.Butweknowthatmyteamactuallysaythattheyworkbetterasateampostlockdown,whichisquiteinteresting.’AccountantsforBusinessGlobalForumandTechnologyGlobalForum(jointsession)53TechnologydrivesbrilliantopportunitiesfortheSMPsofthefuturePROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCASESTUDY:TECHNOLOGYANDSMPsTheopportunityforsmallandmediumsizedpracticestogrowintoday’sbusinessenvironmentisunprecedented.Theadoptionofdigitaltechnologies,inparticular,isleadingtoaneweraofengagementbetweenSmallerandMediumSizedPractice(SMP)accountantsandtheirclientsinthesmallbusinesssector.SMEsandSMPsincreasinglyhaveamutualunderstandingnotjustofthevaluethatSMPsbringtotheSMEsector,butoftheenormouspotentialthatisstilltobeunlocked.TheyprovidethelinkbetweentheSMEsectorandtheecosystemthatSME’shavetonavigatesuchasgovernments,regulatorsandbanks,andtheyplayakeyrolenotjustinguidingSMEclientstothesupporttheyneed,butalsoinarticulatingtheirneedstothesediversestakeholders.Andtherearefurtheropportunitiestooaswelookforward–progressiveSMPsareincreasinglyactingasportfolioCFOs,providingtheexpertiseandinsightneededtodrivebusinessgrowthandbeingseenasgrowthenablersforSMEsandstartups,advisingonandlinkingclientstosourcesoffinance;actingasabusinesscoachormentor;andhelpingtheirclientstransitiontodigitalplatforms.Combinedwithexistingaccountingstrengthsandpoweredbydigital,thismakestheprogressiveSMPpracticethenaturaldestinationforagrowingfirmorstart-up.SMPshavevastlyincreasedthequalityofanalysisandmodellingavailabletotheSMEsectoraswellastheeaseofaccessingfinancialandothersupport,withtheaccountantactingasthecatalystandguide.DigitalisationalsoallowsSMPstoacquireabetterunderstandingofclients,offeringmorevalue-addedinsightandadvice,whichisinturnenhancedby‘alwayson’accesstosharedfinancialdatathatissuperiorinquality,quantityandtimeliness.ItalsoenablesSMPstodevelopnewspecialisations–fromappsstacksdevelopmenttosustainablebusinessmodeltransformationservices.TheCovid-19crisishasparticularlybroughttolightthevitalroleSMPaccountantsplayinsupportingSMEs.Whenthepandemichit,SMPsbecametheemergencyservicefortheirclients.Theyhavebeenabletodemonstratetotheirclientstheirvalueasadvisers,andhelpthemtobuildbusinessesthataresustainableforthelongerterm.54PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGY4.Technology3.Society1.Economy2.Environment5.WorkforceKEYDATAPOINTSTowhatextentdoyoubelievegrowthofdataandnewanalyticsmethodologieswillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievegrowthofintelligentautomation/machinelearningwillimpacttheroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievecybersecuritywillimpacttheroleofsustainablebusinessandfinanceprofessionalsoverthenext10years?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievethereplacementofentrylevelaccountancyrolesthroughautomationwillimpacttheroleofaccountantsoverthenext10years?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Growthofdataandnewanalyticsmethodologies8.60Intelligent(AI/machinelearning)accountingtechnologies8.45Cybersecuritychallenges8.46Replacementofentrylevelaccountancyrolesthroughautomation8.1255PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:4.TECHNOLOGY4.Technology3.Society1.Economy2.Environment5.WorkforceHowtechnologydriversofchangeaffectthesustainablebusinessandfinanceprofessionalofthefuture(someexamples)nSmarttechnologies:TheprofessionisbeingreshapedbysmarttechnologiessuchasAIandmachinelearning.Auditingistransformingthroughenhanceddataminingtechnologies;controlenvironmentsarechangingowingtoIoTandsmartdevices;andfinancebusinesspartneringandperformancemanagementprocessesarerapidlyevolvingasthedigitalcoreandsmartapplicationstransformanalysiscapabilities.Allthismeansbrilliantopportunitiesforfinanceprofessionalstoaddmorevaluetothesustainableorganisationsofthefuture.(Furtherreading:ACCAandEY2020)nAutomation:Wecanexpectfurtherdevelopmentsinsmartautomationanduseofcognitivetechnologiestoreducefurthertheneedforroutinetransactionalworkinfinanceteams.It’sgoingtobeparticularlyrelevantinhelpingfinanceteamstocapture,validateandprocessdatamoreefficiently,shiftingthebalanceoffinanceteams’worktowardstheinsightandforward-lookinganalysisthatdrivesrealbusinessvalue.(Furtherreading:ACCAandPwC2019)nData:Anexpandingdataspherepresentsnewopportunitiesforfinanceprofessionalstoworkwithstructuredandunstructureddata,aswellaswithmoreexternaldatatodriveenhancedorganisationalanalysisacrossthemanydifferentrolestheyperform.Theycanplayanincreasinglyimportantroleindatagovernancetoo,ensuringorganisationshaveaccesstotherightinformationtocontroltheorganisationeffectivelyandexecutesuperiordecisions.(Furtherreading:Evettetal.2020)nCybersecurityisasignificantbusiness-wideriskthatisgrowinginimportance.Itaffectseveryoneintheorganisationbutisparticularlyrelevantforsustainablebusinessandfinanceprofessionalsinthemanyrolestheyundertake,forexampleinauditorasaCFO,giventhefinancialandbusiness-relatedriskscybersecuritybreachesentail,andthereputationaldamageabreachcancause.(Furtherreading:ACCA,CAANZ,MacquarieUniversityandOptus2019)FurtherrelatedreadingfromACCA:Meaningfulworkforthedigitalprofessional:roadmapbeyondthepandemicAnassessmentoftheimpactonthefutureofworkforprofessionalaccountantsfromtechnologydevelopments.Finance:ajourneytothefuture?Thisreportsuggestsanumberofhypothesesindifferentcharacteristicsofthefutureofthefinancefunction.AnalyticsinfinanceandaccountancyAnindepthexaminationofthegrowingareaofanalyticsandtheroleofprofessionalaccountantsandfinanceteams.56PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCEIt’sdifficulttoimagineamoreseismicimpactonthefutureoftheworkplacethanCovid-19,andyetthefourthindustrialrevolutionwasalreadytransformingthemeaningofworkandworkforceoperationswellbeforewebecameoverfamiliarwiththevirus.Whilethesuddenshifttodistributedwork,home-workingandfuturepossibilitiesofhybridworkorworkfromanywherestealtheheadlines,thereisanalmostendlesslistofothertrendsshapingtheworkforceoftomorrow.Oneofthesehasbeenthegrowingrealisationthatworkisafundamentallyhumanactivity,andhoworganisationslookaftertheirhumancapitaliskeytoorganisationalsuccess.Anotheristhesheerinnovationandcollaborationthatisnowtakingplacethatmaytransformtheworkplaceofthefuture,asbusinessesseektotransformtheirorganisationsandcriticallylooktomoreagileworkingpracticestoaddressbusinessissues,respondtonewemergingrisksorexploitnewcommercialopportunities.Wewillseemorecollaborationandgreatercross-teamworking,demandingnewskillsandknowledgefortheworkforcetoacquire.Andastechnologytransformsandtheglobaleconomychanges,there’llbemorepressureonworkerstoreskillorupskilltoensurethattheircapabilitiesremainvaluable.Allthismeansmajorchangestocareerpathsinthefuture.5.Workforce5.Workforce4.Technology3.Society2.Environment1.Economy57PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCETrend21:ThefutureofprofessionalworkishybridThefutureofworkishybrid.Certainbenefitsofhybridworkhavebeenclaimedoverthelast18months,includingincreasedemployeeflexibilityandlowerorganisationaloperatingcosts.Remoteworkinghasenabledorganisationstoconnectdisparatetalentpoolsindifferentlocationstocometogethertoworkonspecificbusinessprojects.Thefuturedistributedworkforcemayalsobehelpfulinensuringgreaterworkplacesocialinclusion,aswellasreducinggenderpaygapsifthereisanequaluptakeofmoreflexibleworkingarrangements,althoughchallengesremaintobeaddressed,withemployeeconcernsescalatingaboutlengthofworkinghours,mentalhealthandemployeewell-beingissues.Theimpactonproductivityisalsoquestionable,andthereareongoingchallengesfororganisationsinestablishinganappropriatebusinessculturethatbestsupportsadistributedworkforceandmakingsurewherepossiblethatthisremains‘hightouch’intheabsenceoffull-timeofficeengagement.Here,multipleinterventionsarebeingdevelopedbyorganisations,fromhavingtheappropriatetechnologicalinfrastructure,collaborationtoolsandsecurityprotocolstosupportremoteworking,ensuringlinemanagementandleadershiphaveappropriatesupportanddevelopmenttomanageintheseenvironments,andusingtechnologyandsimulationstocreatenew‘immersive’environmentsthatcanenableworkerstocometogethertoshareexperiencesandconnecttodriveinnovation.ExcerptfromtheWorldEconomicForumJobsReport2020Thepandemichasshownthatanewhybridwayofworkingispossibleatgreaterscalethanimaginedinpreviousyears,yetbusinessleadersremainuncertainabouttheproductivityoutcomesoftheshifttoremoteorhybridworking.Overall,78%ofbusinessleadersexpectsomenegativeimpactonworkerproductivityfromthecurrentwayofworking,with22%expectingastrongnegativeimpactandonly15%believingthatitwillhavenoimpactorapositiveimpactonproductivity.Suchscepticismislikelytoreflectanumberoffactors:1.theswitchtoremoteworkingisoccurringduringaperiodofadditionalstressandconcerncausedbytherisktolifeandhealthoftheCovid-19virus2.thosecaringforyoungchildrenarefacedwithadditionalpressures–needingtotakeonmoreunpaidcareworkowingtothedisruptionofschoolandnurseryarrangements3.whilecompanieswithestablishedremoteworkingpracticesareaccustomedtoarangeofapproachestomaintainingasenseofcommunityandofactivecollaboration,andtoensuringaflowofcommunication,newlyremotecompaniesarestillestablishingthesewaysofcommunicatingandcoordinatinginthenew,post-pandemicworldofwork.(WEF2020a)‘Ihavenotseenmyteamphysicallyforthelasttwoyears.I’vealsohadnewstaffbeingon-boardedoverthelasttwoyearsaswell.Theyarenotgoingtolearntheculture.Right?Theyaresittingintheirbedroomandstaringattheircomputers.’ASEANCEOroundtable‘IthinktheworkforcehaslearnedalotandIthinklastyearhasequippedtheworkforceingeneralwithskillsforthenext10years.Weallhadtosuddenlygodigital,nomatterwhatageyouare,whereyouareinthehierarchy,wehadtogoandlearnnewtoolswhicharewhichareultimatelynecessaryforthenext10to20yearsaswell.’ASEANCFOroundtable‘Wehavebeenencouragedtomovetoahybridenvironment.Andwewillcontinuedoingsoevenafterthepandemicends,takingintoconsiderationtheinvestmentthatwehavedeliveredontechnology,goingcompletelypaperlessandvirtual...usingoutsourcingintheaccountingdepartmentandusingtechnologywithrobotsandartificialintelligenceoverthelastoneyear.Andwecanreallyseetheimpact.’Central&EasternEuroperoundtable‘Ifyouarenothamperedbylocation,youshouldbeabletoaccesstalentaroundtheworld,ifyoucanworkremotely.Thatmightopenupnewopportunitiesforsmallpracticestoworkthroughthenighteffectively,ifyou’reemployingpeopleinadifferentjurisdiction.’SMEglobalforum5.Workforce4.Technology3.Society2.Environment1.Economy58PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCETrend22:InnovationandcollaborationdrivegrowthInnovationandcollaborationwillbeessentialtohelpingdrivebusinesssuccessandcompetitiveadvantageinthecomingyears.Fosteringacultureofinnovationwillbesupportedthroughanewgenerationenteringwork.Blendingthisyoungeremployeecohortacrossfourothergenerationsintheworkforcewillhelporganisationssparkinter-generationalcreativefriction,andtheuseofinnovationhubs,‘sandbox’environmentsandreversementoringopportunitieswillenrichanecessarycultureofchange.Insupportinginnovation,organisationsarethinkingmorecreativelyaboutthewaysinwhichtheirteamsareconstructed(Figure18).Here,inparticular,theadventofagiletransformationworkingpracticesischanginghowteamsareformedanddisbandedandheighteningtheneedforcollaborativeworkingpracticesacrossdifferentfunctionsasorganisationsseektoenrichtheirworkforce,bringingincontingentworkersandgigemployeesasandwhenbusinessprojectsdemandnicheskills.Organisationalstructuresarealsoevolvingtobelesshierarchical,movingawayfrom‘commandandcontrol’standardreportinglines(ACCA2020c),deployingquick-actingandcross-functionalteamsthatcanbetargetedonsolvingemergingbusinessproblemsquicklyorscalingupinnovationopportunities.Allthismeansthatwithbettertechnologicalcollaborationtoolsandmorevirtualworking,organisationscanstarttoknittogethertalentfromacrossdifferentgeographiestoworktogetherwithinmorefluidprocessesandstructures,andtooperateandtakedecisionsquickly.FIGURE18:TransitioningorganisationstructuresSource:Furnessetal.20215.Workforce4.Technology3.Society2.Environment1.EconomyTraditionalstructureOrganisationsasmachinesLeadershipTop-downhierarchyBureaucracySilosDetailedinstructionsAgilestructureOrganisationsasorganismsTeamsformedtoachievegoalsandthenmoveonFlexibilityinstructures,actioncentricLeadershipshowsdirectionandenablesactionTHEADVENTOFAGILETRANSFORMATIONWORKINGPRACTICESISCHANGINGHOWTEAMSAREFORMEDANDDISBANDEDANDHEIGHTENINGTHENEEDFORCOLLABORATIVEWORKINGPRACTICESACROSSDIFFERENTFUNCTIONSASORGANISATIONSSEEKTOENRICHTHEIRWORKFORCE.59PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCE‘Collaboration–Ithinkthatisaveryimportantpiece.Youhavetobeabletoworkwithaclient.Asanauditoryouareactuallyalsoaninvestigator.Youhavetobeabletohavegood(collaboration)skills.’Expertgroup–auditandtax‘Ijoinedasanaccountantwiththisbusiness,andthechangeIhaveseeninthelast10yearsintermsofpushingthebusinesspartnerrole.Weareheretodrivevalueandcollaborationishuge,alotbiggerthanitwassay5to10yearsago.’Leadersoftomorrow–roundtable‘Someofthethingsareacceleratingprettyquickly,includinginnovation.(Andthebusiness)ishavingtodealwithdisruption,whichrequiresmoreinnovation.’Talentleadersroundtable‘Ithinkthatinnovationiscomingfrommultitudeofdifferentforces.Ithinkeverybody’slookingattheworldandwhatwe’veexperiencedinthelastfiveyearsandthinkinglookhowmuchthingshavechanged.ThingslikeCovid,cameoutofnowhereandpeopledidn’tforeseeit.And,andsothere’sahugedrive,tokindofmakesurethatyou’reconstantlyadapting.’Talentleadersroundtable5.Workforce4.Technology3.Society2.Environment1.EconomySPOTLIGHTON:Financefunctions:seizingtheopportunityACCA’sreportFinancefunctions:seizingtheopportunityidentifieshowfinanceteamscandevelopamorestrategicroleacrosstheorganisationinthefuture.InnovationandcollaborationforfuturefinanceteamsIdentifyareasofopportunityforfurtherimprovement,usingfeedbackfromteammembersandstakeholders.nDevelopanimprovementroadmapthattransitionsthefinancefunctiontowardsagreedgoalsthatalignwithorganisationalstrategy.nRecognisethecontinuousneedfordynamicplanningandscenariomodellingforthefuture.nReassesstheapproachtomonthlyclosecyclesandtheneedtodeliverinformationinrealtime.nAdaptprocessestominimisethejournalentriesandensurethatdataiscapturedinascleanamanneraspossible.nFocusonresolvingrecurrentjournalissues.nConsiderthelessonslearntfromagileresponsestothepandemicandhowthesecanbeappliedonacontinuingbasis.nRecognisetheimperativeoftheESGagendaandthatitcannotwaittobeaddresseduntilafterthepandemic.‘COLLABORATIONISREALLYIMPORTANT.COLLABORATIONANDINNOVATIONFORFINANCETEAMSHAVEMADETHE“FIVEYEARSINFIVEMONTHSLEAP”ASTHERELEVANCEOFFINANCEBECOMESSTRONGER.ITISNOWIMPORTANTTORECOGNISETHATCOLLABORATIONANDINNOVATIONMUSTCONTINUETOGROWIFTHISENHANCEDRELEVANCEISTOBEMAINTAINEDANDFURTHERDEVELOPED’.UKCFO(ACCA2021A)60todeliverbusinessoutcomes.Withthe‘jobforlife’phenomenontrulyover,technologytooishavinganindelibleimpact,creatingnewrolesandjobspreviouslyunimagined,butalsoaugmentingthecapabilitiesneeded.Someofthischangemaybedrivenbyfinancialconsiderations,withdigitalaffordingnewopportunitiesforbusinessestohiretalentinincreasinglydisparate,cheaperlocations,butsomemayalsobedrivenbychangingpersonalpreferencesandlifestylechoicesasindividualsseekdifferentwork–lifeconstructs.Thishasprofoundimplicationsfororganisationaltalentmanagement,employeeengagementandworkplaceculture.‘We’removingtoavarietyofdifferentcareers,andwe’removingintocareersthatdidn’texist,severalyearsago.Sothecareerpathisbroadening,newrolesopenupandpeoplecontinuedownthatcareerpath.Weseeamuchgreaterdiversityofrolesandweneedtosupportthose.’TalentleadersroundtablePROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCETrend23:CareerpathstransformWithtransformingbusinessmodelsandchangingorganisationalstructures,careerpathscontinuetobelessrecognisable.Traditionalstagingpostsoncareerjourneysarelessevidentasthetraditional‘education–work–retirement’modelbecomeslessapparent.Entryandexitpointsoncareerpathsbecomemorediffused,asorganisationsincreasinglyadoptmoreagileapproachestomanagingtheirtalent,increasinglyblendingdifferentemployeepoolsfromgigandcrowdworkerswithpermanentemployeestoenrichthetalentpoolandensurethenecessarycapabilitiesareavailable5.Workforce4.Technology3.Society2.Environment1.EconomyPortfoliosandexperiencesWithincreasedbusinesscomplexity,changingbusinessmodels,operatingstructuresandworkﬂows,buildingresilienceandtappingintocriticalskillscontinuetoreshapetraditionalcareerpathscross-functionallyandbeyond.GigThe‘hire,train,orborrow’questionwillcontinuetoinformworkforcestrategy.Therewillbemorediverseﬁnanceteamsofcontingent,freelanceor‘gig’workersas‘off-balancesheet’talentstrategiesbecomecommon.DigitalCareersareincreasinglydigitalised,withrolesfusingadvancingtechnologicalcapabilitieswithenhancedhumanskills.LifeexpectancyThetraditionalpatternof‘education,work,andretirement’wasframedinanagewherelifeexpectancywasshorter.Growinglifeexpectancyandﬁnancialdependencycouldmeanlongertimespentintheworkplace.JobsecurityMoremobilityacrossdifferentorganisationsisexpected.Shiftingsocietalexpectationsandindividualsneedsmeansjob‘security’isattackeddifferently,buildingawealthofskillsthatfuture-proofsemployment.PurposePurposeandmeaninginworkbecomemorerelevant,asindividualsseekoutcareersandrolesthatcanmakeadifference.FIGURE19:Futurecareerpathstransform61PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCETrend24:Well-beingheadstheagendaThenegativeimpactsfrommentalhealthchallengesintheworkplacewerealreadywellknownbeforetheCovid-19pandemic.AccordingtotheWorldHealthOrganisation,depressionandanxietyaloneareestimatedtocosttheglobaleconomy$1trillionayear(WHO2021)inlostproductivityandtherearegrowingcallsfororganisationstoaddresswell-beingandmentalhealthchallengesintheworkplace.Organisationshaveresponded,lookingtoexpandprogrammesthathelpredesigntheemployeeexperienceandthatrecognisetheuniquechallengesandcircumstancesindividualemployeesface,ratherthanfollowingaone-size-fits-allapproach.Morebusinessesareputtinginsafetynetsandinterventionsthatcatermoreadequatelythanbeforeforemployeementalhealthissues,aswellasrethinkinghowworkisdesignedsothatitnaturallycatersforemployeewell-beingatanindividualandorganisationallevel.Interventionsbecomingcommonincludeeducationandcoachingonfinancialwell-being,specialistsupportoptionsforemployeeswhomaybelookingafterolderrelativesorchildren,throughtoamultitudeofemergingapplicationsthatseektosupportemployeesacrossarangeofhealth-relatedissuessuchassleep,meditationorstressmanagement,andmoreorganisationsaresettingupinformalemployeegroupsthatbringtogetherindividualsfacingsimilarchallengesorstresses,sothatco-workerscanshareadviceandgivesupport.‘Weneedtolooktoawell-beingbecausewehavesomanypeoplerightnowworkingatdistance,theyaresometimesverystressedandlostinthesituation.’CEEroundtable‘TheworkforcegenerallyintheauditfirmsarequiteoverwhelmedandoverworkedandwithCovidcominginthereisevenmoreexpectationsintermsofreportingandevaluatingareas.Somentalwellbeingandphysicalwell-beingis(vital).’TalentleadersroundtableTrend25:ContinuouslearningiscentrestageAsautomationreconfiguresworkandjobs,tasksandactivitiesaretransformed,andtechnologicalskillsatalllevelswillseesignificantgrowthindemand.Asthe2020sgetunderway,automationintandemwiththeCovid-19recessioniscreatinga‘double-disruption’scenarioforworkersacrosstheworld(WEF2020a),withover80%ofbusinessleaderssuggestingtheyareacceleratingautomationofworkprocesses.Businessesareacceleratingdigitalisedworkprocessesandprocesstaskautomation,andasbusinessmodelstransformtodriveinnovationtherearesignificantworkforcereskillingrequirementsasjobsincreasinglynecessitateanenrichedblendofhumancapabilities,technicalacumenanddigitalknow-how.Thetransitioningofskillsandjobsdrivenbybusinesschangeandfastinnovationwilldrivearenaissanceinworkplacelearningascareersecuritydiminishesandcareerjourneysbecomemorepersonalised(Figure20).Achievingthissynergybetweenfuturejobsandcareerpathsthattheemployeewantsandtheorganisation’sneedswillbecriticalforthesustainableorganisationsofthefuture.Therewillbemuchmorepressureonorganisationstothinkverydifferentlyabouthowtheyprovideworkplacelearninginthefuture,withaparticularfocusonsustainableskillsthatareadaptableinthefaceofsignificantdisruption,andwhicharetransferableacrosstheorganisationasbusinessmodelsevolve,andasaconsequenceimprovingtheindividual’slong-termemployability.Here,creatingacultureofcontinuouslearningandmoreself-directedlearningwhereemployeeslearnhowtolearnandre-learnwillbevital.Enhancedflexibilityandaccessibilityoflearningofferingsacrosstheworkforcewillbeneededasthedemandforagilelearningtosupportrapidskillsgrowthbecomesstronger.Governmentswillhaveacriticalroletoplaytoo,informallyrecognisingtheseskillstopromotetransferabilityandacceptabilityacrossindustriesasnationslooktoupskill.Overthenextdecadewecanexpecttoseegrowinginterestinapprenticeshipschemesorvocationaleducationinitiativesthatcollapsethedistancebetweenformallearningandtheworkplace.‘Tostayrelevantweneedtocontinuouslyupgradeourselves.Wehavetocontinuouslyupgradeourskillsregardlessofwhatcertificationyouhold...’NorthAmericaroundtable‘Thewillingnessforcontinuouslearningisreallyimportant...it’sveryinterrelatedwiththeethicsbecauseoneofthecoreprinciplesofourprofessionisaroundduecompetence.’Intervieweequote5.Workforce4.Technology3.Society2.Environment1.Economy62PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCEFIGURE20:Keytrendsinskillsandeducation5.Workforce4.Technology3.Society2.Environment1.EconomyWork-basedassessmentIncreasingfocusonworkplace-basedassessmentfocusedon‘onthejob’learningandtheassessmentofprofessionalskillsandperformanceintheworkplace.Thiswillfurtherbringtogetherprofessionalbodieswithemployersintheassessmentprocess.Life-longandself-curatedlearningGrowingemphasisonlife-long,moreself-directed,learningthroughoutanindividual’scareerasjobsandroleschangeandtechnologyopensupnewblendedinformalandformallearning,particularlyintheworkplace.Micro-learningIncreasingfocusonmakinglearninginterventionssmallerandmoreaccessible,oftennolongerthan15minutesandproviding‘inthemoment’knowledge.FoundationalknowledgeFundamental‘buildingblock’knowledgeandskillsofaccountancyremainevermorerelevant.Beingableto‘asktherightquestion’remainsessentialandtechnologyapplications,inparticular,demandunderstandingoffundamentalprinciplesandprocesses.Micro-credentialsandbadgesAcquisitionofveriﬁableskillsthroughminiqualiﬁcationsthatdemonstrateskillsorknowledgewithanearned‘credential’or‘badge’oncompletion(typicallyadigitalaward).Re-skillingGrowingbusinesscomplexity,automationanddigitalinnovationdisruptscareerpathwaysandnecessitatesmorefrequentreskillingacrosstheprofession.ExperientialStrongertiesbetweeneducationandtheworkplaceinthefaceofchangingbusinessmodels,workﬂowsandskills.CriticalskillsChangingbusinessmodelsandworkﬂowswillplacenewemphasisontheacquisitionofcriticalinterdisciplinaryskillsintheworkplacethatcanbeappliedinarangeofdifferentcircumstances.63PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCE5.Workforce4.Technology3.Society2.Environment1.EconomyKEYDATAPOINTSTowhatextentdoyoubelievetheworkforceneedingtoacquirenewskillswillimpactthefutureroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievemoreremoteworkingandflexibleworkingpracticeswillimpacttheroleofsustainablebusinessandfinanceprofessionalsoverthenext10years?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelievechangestoworkplacelearningwillimpactthefutureroleofsustainablebusinessandfinanceprofessionals?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelieveanincreasedfocusonbusinesstransformationwillimpacttheroleofsustainablebusinessandfinanceprofessionalsoverthenext10years?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Towhatextentdoyoubelieveanincreaseinthegigeconomywillimpacttheroleofsustainablebusinessandfinanceprofessionalsoverthenext10years?ResponsestoACCAmembersurvey,impactsoverthenextfivetotenyears(Scaleof1–10where1=noimpactand10=verysignificantimpact)Workforceneedingtoacquirenewskills8.27Moreremoteworkingandﬂexibleworkingpractices(work/lifebalance)8.15Changestoworkplacelearning7.56Anincreasedfocusonbusinesstransformation7.97Anincreaseinthegigeconomyinthefuture7.2564PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSDRIVERSOFCHANGE:5.WORKFORCE5.Workforce4.Technology3.Society2.Environment1.EconomyHowworkforcedriversofchangepresentnewopportunitiesforfinanceprofessionals(someexamples)nHybridworking:Auditandadvisoryteamswillbeincreasinglyexecutingclientengagementsremotely,workingacrossdiverseteamsindifferentlocationsandparticularlyexploitingopportunitiesfromevolvingtechnologytoplantheirengagements,accessclientinformationremotely,gatherandshareinformationacrossteamsandreport.They’llbecarryingoutclientengagementsmoreeffectivelyandefficientlythroughhybridworkingpractices.(Furtherreading:ACCA2020c)nInnovation:Sustainablebusinessandfinanceprofessionalsaregoingtobekeytodrivingorganisationinnovationinthefuture.They’llbecollaboratingmoreinagile,cross-functionalteamstosolvebusinessproblems.They’llbedeployingnewemergingtechnologiesthatwilltransformworkingpracticesandaddvaluetobusinesses.Theywillbeneededtoinnovateinexecutingbetterdataanalysis,establishingnewperformanceframeworksthatcaptureESGinformation,helpingorganisationsmanagenewemergingrisksorhelpingthepublicsectorinnovateitsfinancialmanagementtoenableittobuildbackbetter.(Furtherreading:ACCA2021a)nContinuouslearning:Withgrowingdemandforbusinessandfinanceskills,andtechnologyreplacingroutine,transactionalworkactivities,therearegrowingopportunitiesforfinanceprofessionalsacrossallsortsofcareerpathsandrolestodeliveradded-valueadviceandinsight,butthisnecessitatesamindsetofcontinuallearning,particularlyforkeyareasofinfluencesuchastechnologicalinnovation,ordevelopmentsintheESGagenda.(Furtherreading:Webb2020)FurtherrelatedreadingfromACCA:Futureready:accountancycareersinthe2020sAreviewofkeytrendsimpactingaccountancyparticularlyfromacareerperspective.Groundbreakers:GenZandthefutureofaccountancyAreviewoftheyoungestgenerationenteringtheworkplacetoday,andtheirimpactonthefutureofaccountancy.Thedigitalaccountant:digitalskillsinatransformedworldAnexplorationofthekeydigitalskillsthatwillbeneededbyprofessionalaccountantsinthefuture.65PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIESCorecapabilitiesofthefutureBuildingonanextensiveexternalglobalengagementprocessacrosstheworldoverthelastyear,weseeanumberofemergingcorecapabilitiesthatwillbeneededbythesustainablebusinessandfinanceprofessionalofthefuture.66Collaborationfocusesoninteractingwithothers:engagingeffectivelywithinternalandexternalstakeholders,communicatingclearly,beinginclusiveandinfluencingimpactfully.Whyiscollaborationacorecapabilityforthefuture?Greatcollaborationskillsareanessentialcorecapabilityforthesustainablebusinessandfinancialprofessionalinwhateverroletheyperform.Asorganisationsandbusinessestransformandreacttoamultitudeofeconomic,social,technological,environmentalandworkplacechallenges,theyunderstandthenecessityofgreatcollaboration.Collaborationintomorrow’seconomyismanifestinginmanydifferentforms,fromthetransitiontohybridworkandremoteworking,evolvingglobalsupplychains,newemergingbusinessmodels,transformingprivate–publicpartnerships,cross-functionalproject-basedteamsandemergingcollaborativeworkplacetoolsandtechnologies.Thisisafuturedecadewherebusinesseswillseekoutclosercollaborationthroughsystemsandsupply-chainintegrationtoensuretheycanrespondwithmoreagility,managenewemergingrisks,andexecutedecisionsmoreefficientlyandeffectivelytodrivethesustainableorganisationofthefuture.Keycollaborationcompetenciesidentified:nEngagement:Partnersandinteractswithothers,workinginteamsandwitharangeofinternalandexternalstakeholders,inordertobuildandmaintainfruitfulrelationships.nCommunication:Communicatesclearlyandwithconfidence,simplifiescomplexity,presentsargumentslogicallyandconciselyandpresentsinformationusingappropriatetechnologies.nInclusivity:Respectsdifferentviewsandopinions,recognises,appreciatesandvaluesdiversityandactsinaninclusivemanner.nInfluence:Offersadviceandinsights,engagesothersthroughpersuasion,achievescommonground,resolvespotentialconflictsandgainssupportforproposals.nStakeholderfocus:Listenstointernalandexternalstakeholders,understandscustomersrequirementsbyfocusingtheirneeds,solicitsandactsuponfeedbackandprovidesapositiveexperience.Corecapability1:CollaborationPROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIES67Insightrelatestohowyouthinkandoperateatanindividuallevelinyourorganisationalcontext:accuratelyanalysinginformation,generatingnewideas,makingcleardecisions,organisingwork,focusingonkeyprioritiesandachievingtimelyresults.Whyisinsightacorecapabilityforthefuture?There’llbegrowingdemandforsustainablebusinessandfinanceprofessionalstobringsuperiorinsightcapabilitiestothesustainableorganisationofthefutureacrosstherolestheyperform.Intheknowledgeeconomy,organisationalinsightcapabilitiesareessentialtodrivingcompetitiveadvantage,improvingservicedeliveryoutcomes,anddrivinginnovationwhilealsoachievingpurposeandwidersocietalbenefitsthatgeneratelong-termsustainablevalueforstakeholders.Organisationsaretransformingtheirbusinessmodels,rethinkingtheirapproachestoESGissues,exploringnewpartnershipsandbusinessmodels,becomingincreasinglycustomercentric,exploringemergingchannelstomarketthroughtechnology,reconfiguringtheirsupplychainsandtransformingworkforcemodelsandemployeeengagementpractices.Allthesechangesrequiredeepinsightandknowledgeacrosstheorganisation’sprocesses,particularlyusingopportunitiesfromthegrowthindatatoenabledeeperanalysisandunderstanding.Keyinsightcompetenciesidentified:nCriticalthinking:dealswithinformationanddataandgetstotheheartofthematterinordertomakeclear,evidence-baseddecisionsthatmoveissuesforward.nPlanningandprojectmanagement:Undertakesprojects,schedulesactivities,organisesandprioritisestasksandmonitorsprogresstoachieveobjectivesinatimelymanner.nInnovation:Looksfornewandbetterwaysofdoingthings,generatesnewideasforchangeandimprovementandisopentoalternativewaysofworking.nBusinessacumen:Understandsandrespondstointernalandexternaldrivers,maintainsacommercialmindsetanddevelopsopportunitiesforgrowthinternallyandforexternalstakeholderswhereappropriate.nGovernanceandcontrol:Ensuresthatthestructureofrules,practicesandprocessesusedtodirectandmanagetheorganisationareatthehighestlevels.Corecapability2:InsightPROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIES68Driverelatestoyourattitudeandmotivation:beingdetermined,motivatinganddevelopingyourselfandotherstoachievestretchinggoals,beingcuriousandopentonewapproachesandactingwithintegrity.WhyisDriveacorecapabilityforthefuture?Personaldriveandindividualresilienceareessentialqualitiesandcorecapabilitiesthatthesustainablebusinessandfinanceprofessionalmustharnessingthefuture.InthecontextofachallengingglobaleconomyinthewakeoftheCovid-19crisis,dramatictechnologicalshiftstransformingindustriesandsectorsacrosstheglobe,aswellasgrowingenvironmentalconcernsaboutclimatewarmingandshiftingsocietaltrendsarepresentingorganisationsandinstitutionswithanincrediblychallenginganddisruptivelandscapetonavigate.Inthefaceofallthesedevelopments,workplacesaretransformingtoo:whereworkgetsdone,howitgetsdoneandwhodoesit.Careerpathsaretransitioninginaccountancy,andjobdescriptionsarebeingrewrittenacrosswholeindustriesandsectorsthroughdigitalinnovations.Thisishavingprofoundimplicationfortheskillsandcapabilitiesneededtofueleconomicandorganisationalgrowth,butitalsopresentsanincrediblychallengingandchangingenvironmentinwhichworkhappens,necessitatingnewlevelsofpersonaldrivetogetthingsdone.Keydrivecompetenciesidentified:nLifelonglearning:Managestheirownandothers’development,coachingandmentoringothers,takingresponsibilityforlearningandcontinuallyimprovinganddevelopingprofessionalskills,knowledgeandexperiencenDetermination:Initiatesanddrivesthingsforward,followsthroughandgetsthingsdone,isresilient,setsambitioustargetsandachievesexcellenceandstrivestodevelopapositivepersonalreputationnChangeorientation:Questionsexistingpractices,adoptsnewapproaches,adjuststochangingcircumstancesandrespondspositivelytonewideasnAuthenticity:Buildstrustedrelationships,isreliable,actswithintegrityandinamannerthatisappropriateforaprofessionalaccountant,promotingtrustintheprofessionnLeadership:Setsdirectionandencouragesotherstowardstheachievementoftheorganisationgoals.Corecapability3:DrivePROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIES69Actsinaccordancewithfundamentalprinciplesofprofessionalandpersonalethicalbehaviour,ensuringtheuseofappropriateethicalframeworksandcompliancewithlawsandregulationsWhyisEthicsacorecapabilityforthefuture?Sustainableorganisationsunderstandthatethicsisthecornerstoneoflong-termvaluecreationinaconnectedworldwherestakeholdertransparencyisgrowingandwherethefall-outfrompoorbehaviourdestroysvaluequickly.Businessleadersneedtobeseentoberunningtheirorganisationsonenvironmentallysoundprinciples,playingtheirpartintacklingtheclimatecrisis,andhelpingcreatelonger-termvalueforwidersociety,andnotjustforshareholders,bydemonstratingethicalleadership.Thesustainablebusinessandfinanceprofessionalhasacriticalroletoplayinbringingnewlevelsofintegrityandethicstotheorganisation.Acrossthedifferentrolestheyperformfromauditandadvisorytocorporatereporting,financialmanagementandriskmanagement,they’reessentialtorebuildingmarketconfidenceinorganisations,creatinginvestortransparencyandprotectingthepublicinterest,actingethicallyatalltimes.Corecapability4:EthicsPROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIES70Expertiserelatestoyourfunctionalresponsibilitiesofyourrole:drawinguponyourknowledgeandexperience,applyingyourtechnicalexpertisetothematterinhandinordertobenefityourorganisation.Unliketheotheraspectsoftheframeworkwhicharerelevanttoeveryone,itislikelythatonlyoneortwooftheseareaswillberelevanttoyourrole.AuditandassuranceProvideshighqualityauditsbyevaluatinginformationsystemsandinternalcontrols,gatheringevidenceandperformingprocedurestomeettheobjectivesofauditandassuranceengagements.Lookingforward,auditandassurancewillremainfundamentaltounderpinningtheefficientworkingsofcapitalmarkets,drivinginvestorconfidenceincompanyperformanceandreportingand,asaconsequence,reducingthecostofcapital.Shareholderswillcontinuetodemandassuranceoverthetruthandfairnessoftheorganisation’sfinancialstatements,butassuranceneedsarewideningtostakeholders’groupsrangingfromgovernments,regulators,potentialshareholders,andspecialinterestgroups,tocustomerandsupplychainpartners,whoallneedassuranceonhowperformanceisachievedandonfutureorganisationalviability.Thiswillcontinuenotonlytodrivedemandsformoretransparency,accountability,andconsistencyinfinancialstatements,butwillalsobringintoquestiontheroleofauditorsinassuringothercorporatereportsthatgobeyondthefinancialstatementsandrelateddisclosures,particularlyinthefaceofpressingcallstoreportharmonisationandstandardisationinnon-financialdisclosures,andtheemergingESGagenda.CorporateandbusinessreportingPreparesandcommunicateshigh-qualitybusinessreportstosupportstakeholdersunderstandinganddecisionmaking.Externalcorporatereportingwillremainthebedrockforexplainingtheorganisation’sperformancetotheoutsideworld.Theproductionoffinancialstatementsandaccompanyingdisclosuresbyprofessionalaccountantsusingappliedknowledgeofrelevantframeworksandaccountingprinciples,aswellasjudgementsinaccountants’treatmentsunderpinthetrustofshareholdersandincreasinglythatofstakeholders.Thebroaderinformationtypicallyprovidedinannualreportsisintendedtogiveacomprehensiveoverviewandexplanationoforganisationperformance,includingthefinancialstatements,operationalandfinancialhighlights,managementdiscussionandCorecapability5:ExpertisePROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIES71PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIESanalysis,theauditors’report,asummaryoffinancialdataanddisclosureofaccountingpolicies.Reportsshouldalsoprovidecontextualanalysisoftheriskstheorganisationfacesanditsevolvingbusinessmodelforthefuture.Butasreportingframeworksandstakeholderinterestsexpandthereismoredemandforwiderdisclosure,andwecanexpectthecorporatereportinglandscapeforsustainableorganisationstowidensignificantly.TaxationComplieswithtaxregulationsandsystems,communicateswithrelevantstakeholderstoestablishandethicallymanagetaxliabilitiesforindividualsandcompanies,usingappropriatetaxcomputationandplanningtechniques.Sustainableorganisationsofthefuturewillneedtomanagetheirtaxaffairscarefully,andtaxcapabilitiesandknowledgewillbecoretocreatinglong-termsustainablevalue.Taxprofessionalswillneedtobecomemorestrategicinthefaceoftransformingbusinessmodels,growingdigitalisationofproductsandservices,andnewchannelstomarket.Therewillbeabiggerroletoplayinrespondingtothedigitalisationandautomationoftaxadministration.Technologyisalsoplayingakeyroleinbettergovernanceoftaxdataandsimplificationoftax-relatedinformation,aswellasautomatingmoreroutine,transactionaltaxprocesses.AdvisoryandconsultancyDevelopsinsightintobothinternalandexternalclients’organisationalissuesandprovidesexpertadvicetoaddvalue.Supportsclients’objectivesandplanstoimprove,innovateandsustainablygrow:identifiesefficienciesandrespondstochangingenvironments.Thenatureofadvisoryserviceswillcontinuetoshift.Wewillseedemandsfordifferentadvisoryservicessuppliedbyentitiesrangingfromconsultingorganisationstosmallerfirmsandsmalltomedium-sizedpractices(SMPs)asbusinessseektoredesignoperationsandtransformtheirbusinessmodels.Asindustriesevolveit’sgoingtobeessentialforadviserstoofferspecialisedknowledgeacrossdifferentindustriesandsectors,aswellasexhibitingaclearunderstandingofhowtheyarelikelytobedisruptedinthefuture.PerformancemanagementDeliversfinancialinformation,tools,analysisandinsightacrossthebusiness,assesses,evaluatesandimplementsmanagementaccountingandperformancemanagementsystems.Superiorperformancemanagementskillswillbeessentialinhelpingorganisationsunderstandthefuturebetter,createcompetitiveadvantage,transformtheirbusinessmodels,understandemergingmarketopportunitiesorcreatenewproductsandservicesacrossdifferentchannelsthroughbetterdecisionexecution.Here,thesustainablebusinessandfinanceprofessionalwillplayakeyroleinestablishingappropriateperformance-managementframeworksforcapturing,evaluating,controlling,.monitoringandreportingonenterprise-widemanagementinformationand,critically,inhelpingmanagementtounderstandthefuturebetterandtakemoreeffectivedecisions.RiskmanagementEnsureeffectiveandappropriategovernance,allowsevaluation,monitorsandimplementsappropriateriskidentificationprocedures;bydesigningandimplementingeffectiveinternalauditandcontrolsystems.Asthenatureofrisksfacingorganisationschange,risk-managementpracticeswillneedtoevolve.Therewillbeagrowingneedfororganisationstorethinktheirrisk-managementapproachesandthinkmorebroadlyabouttheriskecosystem,drivingabetterunderstandingofthestrategicriskstheorganisationfacesandensuringthatstrategicdecisionmakingallowsforboththeupsideandthedownsideofdifferentrisks,linkedtothevalueleversintheorganisation.Therewillneedtobeagrowingunderstandingoffinancialriskbut,inaddition,non-financialrisks,suchaspeoplerisks,environmentalrisks,socialandgovernancerisks,whichmustbebuiltintoorganisationalrisk-assessmentprocesses.FinancialmanagementImplementseffectiveinvestmentandfinancingdecisionswithinthebusinessenvironmentinareassuchasinvestmentappraisal,businessre-organisations,taxandriskmanagement,treasuryandworkingcapitalmanagement,toensurevaluecreation.Attheheartofthesustainableorganisationofthefuturewillbestrongfinancialmanagementcapabilitiesthatareresilientinthefaceofsignificantmarketdisruptionandamorechallengingcompetitiveenvironment.Goodfinancialmanagementandfinancialcontrolareattheheartofeffectivestewardshipoftheorganisationandcriticaltohelpingorganisationscreatevalue,aswellasprotectandreportonvalue.Thiswillrequireeffectiveinvestmentappraisalandassetvaluationtechniques,effectivetreasuryoperationsthatmanagefinancialriskappropriately,andappropriatecashliquidityandefficientworkingcapitalarrangements.Itwillalsoinvolvefinancialcontrolandreportingactivitiesthatunderpinexternalcorporatereportingprocesseswhilealsogivingmanagementassuranceoverthefinancialpositionoftheorganisationandthefinancialrisksitfaces.Thedynamicallychangingmarketswecanexpecttoseeinthefuturewillchangeandchallengefinancialmanagementpractices.Newchallengeswillemergefrommanagingvolatilityincurrencymarkets,seekingfundingfromtheproliferatingoptionsavailabletobusiness,assessingtheESGimplicationsoforganisationinvestments,monitoringdevelopmentsindifferenttypesofcurrencies(suchascryptocurrencies),andusingimprovedtechnologiesforperformingfinancialmanagementanalysisacrossarangeofdifferentactivitiesandfacingnewemergingfinancialrisks.72Proficientlyandethicallyusesexistingandemergingdatatechnologies,capabilities,practicesandstrategies.WhyisDigitalacorecapabilityforthefuture?Digitalskillswillbecornerstonecapabilitiesforthesustainablebusinessandfinanceprofessionalofthefuture.Technologywillreshapethejobsperformedandgivenewopportunitiestoaddvalue.Automationandanalyticstechnologieswillenhancedatamininginauditing,augmentingtraditionalassuranceprocesses,improvingreportingconfidenceandreducingerrors.Artificialintelligence(AI)technologywillincreasinglyusealgorithmstodrivebetterrisk-managementpracticesandsupportriskvisualisation.TheInternetofThings(IoT)andsmartdeviceswillenhancecontrolframeworksanddeliverreal-timeinsightsandinformation.Technologiesappliedintaxwilldrivecomplianceefficiencyandbuildinnewdataenquirycapabilities,enablingfasterresponsestochangingregulatoryrequirements.Smarttechnologieswilltransformthelevelofanalyticsinsightsthatbusinesspartnersandfinancialanalystscontributetothebusiness,andtechnologywillcontinuetochangehowlargerauditfirms,SMPsandadvisoryteamsprovideadded-valueinsightandadvicetoclients.Newemergingcollaborativetoolswillenablefinanceteamstoreconfigurehowtheyworktogetherandshareinformation.Corecapability6:DigitalPROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIES73Appliesintegratedthinkingandactiontocreate,protectandcommunicatelongtermvaluefortheorganisation,environmentandsociety.WhyisSustainabilityacorecapabilityforthefuture?Sustainablebusinessandfinanceprofessionalswillhelporganisationsdeliversustainableorganisationspracticesthatcreatelongtermvalueforstakeholders.They’llbeessentialinhelpingdrivemoreeffectiveenvironmental,socialandgovernancepracticesandensuretheseareaccountedfortheseinmoretransparentandmeaningfulwaysthatunderpinsbettersustainabledecisionmaking.Thesustainablebusinessandfinanceprofessionalwillplayanessentialroleinhelpingorganisationsunderstandemergingdatarequirementsandestablishappropriatedatagovernancemechanismstosupportbetteranalysisandunderstandingoftheimpactsbusinessactivitiesarehavinginternallyandexternally.Theywillbekeytoestablishingperformance-managementframeworksandrelevanttechnologyinfrastructurethatmoreeffectivelycapture,measureandreportonESGmetrics,gainingabetterunderstandingoftheirinterrelationshipswithtraditionalfinancialcapitalandhelpingthetransitionfromaccountingforthebalancesheettoaccountingfortheentirebusiness.Expertiseinsustainabilitywillbeessentialinhelpingorganisationstakelonger-termdecisionsthattakeintoconsiderationthetrade-offs,costsandopportunitiesofallbusinessactivitiesthathaveESGimpactsandwhichhaveconsequencesacrossdifferentstakeholders.Sustainabilityskillswillbeintegralforthesustainablebusinessandfinanceprofessionalinallthefuturerolestheyperform.Corecapability7:SustainabilityPROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCORECAPABILITIES74Sustainabilityprofile:JohnLelliott‘Youhavetomakeitapartofyourstory’JohnLelliottspeakstoACCAaboutthebusinessimperativesofsustainability.JohnLelliotthashadaringsideseattothelasttenyearsoftheUK’ssustainabilityreportingjourney.FormerlyfinancedirectorattheCrownEstate,hewasoneoftheearliestproponentsoftheInternationalIntegratedReportingCouncil’s<IR>framework,andnowsitsasanon-executivedirector(NED)onanumberofboards.HespoketoACCAaboutwhatitwasliketobeapioneerthen,andtobesteeringatthehelmnow.Must-to-have‘AttheCrownEstate,stewardshiphadalwaysbeenpartoftheremit,’saysLelliott.‘Butin2012,AlisonNimmobecameCEO,whohadbeendesignandregenerationdirectorattheOlympicDeliveryAuthority.Obviouslyshebroughtawealthofsustainabilityknowledgeandexperiencewithher,andshewantedtomakeitfarmoreapartofourcorporateobjectives.’LelliottdescribeshowtheCrownEstateboardbegantothinkofsustainability‘asamust-to-have,ratherthananice-to-have,’and,seeingearlymanoeuvresinthemarkettowardssustainablebusiness,thecompanydecidedtolead,ratherthanfollow.‘The<IR>frameworkwasreleasedinDecember2013,andwehadinvestigateditthoroughly,andbelieveditcouldbevaluabletous,’saysLelliott.TheCrownEstatebecamepartofthe<IR>pilotprogramme,withLelliottandhisteamdecidingonathree-yearprogrammetoimplementnotonlyintegratedreporting,butensurethatsustainabilitywasintegratedacrossthebusiness.‘Wedidn’tjustwanttopublishanintegratedreport,’hesays,‘buttoreallyembeditintotheorganisation,andintothecompanymindsettoo.’TheCrownEstatewassuccessfulinitseffortto‘lookbeyondthefinancialreturn’andwonmultipleawardsforitsreports.Lelliottwashooked.‘Offthebackofthat,Ibecamemuchmoreinvolvedinthesustainabilityagenda,’heexplains.‘IwasaskedbyACCAtochairtheirglobalforumonsustainability,andwasinvitedontotheAccountingforSustainability(A4S)advisorycouncil.’Whilesustainabilityisfrontofcorporatemindnow,inthosedays,saysLelliott,theagendawaslargelydrivenbyinterestgroups,energeticindividuals,andahandfulofforward-thinkingcorporates.Lelliotthasbeenretiredsince2016,butafullNEDportfoliokeepshimbusy.Hesitsonorchairsanumberofauditcommittees,includingtheEnvironmentAgency,theDepartmentforEnvironmentFoodandRuralAffairs(DEFRA),UniversityHospitalDorset,andJTL–anapprenticeshipcharity.Ineachrole,hetriestobringhisfunctionalknowledgeofsustainabilitytobear.‘Financialdirectorsareunderalotofpressure,’hesays,‘they’vegotsomuchcomplianceandregulationtograpplePROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCASESTUDY:SUSTAINABILITY75with,andnowsustainabilitytoo–afarlessregulatedspacewherethere’salotofcompetingframeworksandadvice.’Heseeshisroleasaproviderofclearadvice.‘AsaformerFD,Iworryaboutno-onesteppinguptotakeresponsibilityforsustainability,’hesays,‘IhopeIcanhaveaneffectonthat.’ChooseyourwordscarefullyLelliottsaysthatoneofthebiggestbarrierstosustainabilityistheworditself.‘Peoplehavethewrongideaaboutit,’heexplains,‘sustainabilityisaboutriskandresilience.CEOsandCFOsneedtoapproachitfromthreeangles:cost,regulation,andtaxation.’It’snotamoralthing,hesays,butanecessarything,enteredaroundabilityandlicensetooperate.Thatsaid,Lelliottisencouraged.‘Thelandscapehaschangedradicallyinmytime–eveninthelastfiveyears,’hesays.‘Idon’tthinkitwillbetoolongbeforewehaveacommonformatforreportingthatincludessustainabilityinitsmetrics.’HeisheartenedbytheInternationalAccountingStandardsBoard’sentryintothefraywithitsproposalsforatwinSustainabilityStandardsBoard.‘Therehasbeentoomuchterritorialityaboutit–itgottoopolitical.I’mgladsomeonehassteppedup.’Butstandardsisonlyonepartofit,heexplains,theotherpartisskills.‘Weusedtotalkalotabouttheskillsauditorsofthefuturewouldneed.Well,it’sauditorsoftheverynearfuture–ifnottheauditorsofnow!’Lelliottsaysthatthedemandfrominvestorsformoreinformationonsustainabilitywillinevitablyleadtoitsneedforthesamelevelofassuranceprovidedoverthefinancialstatements.‘Therehastobeamovetowardsreasonableassurance,’hesays,‘butwhodoesthatassuranceisanothermatter.’SkillsgapimminentRegularauditorswon’thavetheskills,hesays,‘itwilltakepartneringwithalotofpeoplewiththerightexpertise–surveyors,valuationexperts,andsoon.Thenitwillbeuptotheauditorstolookatthereasonablenessofthosefindings.’But,saysLelliott,despiteaneedforauditorstouptheirgame,thisisanexcitingtimeforaccountants.‘They’rehavingtolookbeyondthenumbers,andexercisemoreandmorejudgement.Theirworkishelpingcompaniestobuildthisinformationintothebusinessmodel,intoriskplanning.There’sanopportunityhereforthemtoplayareallyimportantroleincompaniesdrivingtowardsnetzero.Itwon’tbeeasy,though,hesays.‘Ifyoulookatbalancesheetsnow,there’ssomanyintangibles.Accountantsaremostlytrainedtodealwithfixedassets,sothere’sanelementoftrainingthemtomakejudgementsthatarebasedoninformationwithalotmorenuanceandvariability.’LelliottrecountsaninstructiveexperienceattheCrownEstatethathesaysillustratesthedifferencebetweensustainabilityassimplyareportingprocessandsustainabilityasabusinessprocess.‘IremembergoingintothesecondyearofourintegratedreportingprogrammeandsharingthedraftreportwithAlison(Nimmo,theCEO).Shecalledmeandsaid‘John,thislookslikeyou’retryingtofollowaframework.Idon’tlikeit.Iwantyoutotellmeourstorywithintheframework.’That’struetoday.Forthistowork,accountantscan’tjustslavishlyfollowaframework.Youhavetomakeitapartofyourstory–apartofthewayyouactuallydobusiness.’PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSCASESTUDY:SUSTAINABILITYFORTHISTOWORK,ACCOUNTANTSCAN’TJUSTSLAVISHLYFOLLOWAFRAMEWORK.YOUHAVETOMAKEITAPARTOFYOURSTORY–APARTOFTHEWAYYOUACTUALLYDOBUSINESS.76PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTURECAREEROPPORTUNITIESFuturecareeropportunitiesTRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERSClickonthetabs,tonavigatetoeachreleventchapterOurlatestresearchidentifiesfournewemergingcareerzonesofopportunityforthesustainablebusinessandfinanceprofessionalwheretheycanmakevitalcontributionstoensureorganisationsaresustainableforthefuturethroughthetypeofjobstheyperform.4brilliantcareerzonesofopportunity,20keyroles,7corecapabilities77PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTURECAREEROPPORTUNITIESKEYROLESFOCUSEDONCREATINGAND/ORPROTECTINGVALUEKEYROLESFOCUSEDONPROTECTINGAND/ORREPORTINGVALUEFinancebusinesspartnersProject/ProgrammeaccountantsPerformancemanagers/analystsTreasuryprofessionalsCorporateﬁnanceexpertsAdvisersGBSprofessionalsEducatorsTechnologyanddataleadersEntrepreneursCFO/C-SuiteCorporatereportersTaxexpertsControllersInvestorrelationsPublicsectorreportersExternalauditorsPublicsectorauditorsESGassurersIA/Riskprofessionals1234567891011121314151617181920REPORTVALUE:HelpingorganisationsreportvalueexternallyinmeaningfulandtransparentwaysCREATEVALUE:HelpingorganisationsexecutetherightbusinessdecisionstocreatesustainablevaluePROTECTVALUE:HelpingorganisationsestablishandexecuteprocessesthatprotectsustainablevalueTRANSFORMATIONDRIVERSCAREERZONE1:ENTERPRISEANALYSTSCAREERZONE2:ASSURANCEPROVIDERSCAREERZONE3:STAKEHOLDERREPORTERSCAREERZONE4:Clickontheboxes,tonavigatetoeachreleventpageorchapter78PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIESCareerzone1:ThetransformationdriverThetransformationdriverthinksahead.Therolestheyperformareessentialtodeliveringorganisationalchangetocreateandprotectlongtermsustainablevalue.ThisisthesustainablebusinessandfinanceprofessionalbringingnewvisionandtransformationalcapabilitiestotheorganisationascallsgrowtobuildbackbetterandbusinesseschangetomeetgrowingESGcommitments.Theycouldbeexploringnewconsultingoradvisoryrolesinthefaceofrapidtechnologicalinnovationandbusinesschange.Theymaybemorespecificallyworkingasbusinessadvisersleadingbrilliantlyinnovativesmallerandmedium-sizedaccountancypractices(SMPs)thataretransformingtheirclientorganisations.Theycouldbeentrepreneursusingtheirfinanceandaccountancyskillstoestablishstart-upbusinessesattheheartofsustainablelocaleconomies,ortheycouldbedrivingmajorbusinesschangeinitiativesinglobalbusinessserviceoperations.Theymaybedigitalleadersseekingtointroducenewtechnologiesordriveenhanceddatacapabilitiestotransformbusinesses,ortheymayhavealreadyreachedachieffinancialofficer(CFO)role/CSuiterole,drivingorganisationalchangeaspartoftheleadershipteamacrosstheorganisation.Theymayevenbeineducationroles,helpingtransformthetalentpipelineforthefuture.Whateverroletheyperform,theirskillsandcapabilitiesareessentialtodrivingtransformationalchangeinorganisationsasacatalystforcreatinglongtermsustainablevalue.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS79PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THETRANSFORMATIONDRIVERFutureopportunity1:ADVISERSThe2020spresentanewageforadvisoryservicesandbrilliantcareeropportunitiesforthesustainablebusinessandfinanceprofessionalinadvisoryroles,bringingnewlevelsofexpertisetohelpingcreatelong-termvaluefororganisations.Withgrowingcomplexityanduncertaintyacrossthebusinesslandscape,organisationswillcontinuetolooktotransformtheirbusinessmodelsandoperationstocreatenewvaluestreams.Therewillbenewmarketopportunitiesasbusinesseslooktore-engineerprocesses,transformtheiroperatingfootprintsand‘buildingbackbetter’.Therewillbeagrowingneedforadviserstobringnewdepthsoftechnologicalknowledgeacrossdifferentconsultingareasasorganisationsseektotapintodigitaldevelopmentsintransformingthemselvestocreatenewvaluestreams.Adviserswillneedtodemonstratestrongpersonaldriveandchange-orientationcapabilitiestoworkwithclientsinincreasinglyfast-movingenvironments.Theadviserofthefuturewillbeusingenhanceddatacapabilitiesanddataanalyticsskillstocreatenewlevelsofclientinsight,helpingorganisationstotransformtheirbusinesses,createcompetitiveadvantage,driveprocessefficiencies,meetgrowingregulatoryandcompliancechallengesmoreefficientlyorcreatenewcommercialopportunities.Theadvisorymarketisexpanding,withsmallertechnology-enabledaccountancyfirms,inparticular,disruptingthetraditionaldominanceoflargerconsultingfirmsatlowercostsasclientsseekoutcollaborativepartnersandproactiveservicesthatcanintroduceideasabouthowtheycantransformtheirorganisationtechnologically.OpportunitiesarisingfromchangingtechnologiesandskillsaretransformingtheSMPsector(SmallandMediumSizedPracticeSector)astheseorganisationsincreasinglyshiftfromcomplianceandtraditionalaccountingandbookkeepingservicestoadvisingonstrategyandtechnologicalchange.ThereareemergingCloud-basedsolutionsthatintegratecoretechnologiesseamlesslywithnewapplicationsastheexpansionofmobilenetworksandwideningbroadbandaccessremovethe‘brownpaperbag’andreplaceitwiththesmartphoneandthetablet(James2019b).Digitalisationoftheseaccountancyfirmsisnotsimplychangingthetypeofservicesprovidedandhowtheyareoffered,it’srevolutionisingservicedeliverytimesandcuttingoutroutineautomationwork,aswellasenablingfirmstostreamlinedatacapture,improvedataaccuracy,accessclientdataimmediatelyonlineandrespondtoqueriesquickly.It’salsoenablingSMPstomoveintodifferentareasofadvice,includingthegrowingspaceforESGadvice.It’senablingSMPstoprovidehigher-qualityinformationandinsight-drivenenhancedclientvalue.EXAMPLESOFCORECAPABILITIESTHATMATTERTOTHEADVISERDIGITALContinuedgrowthofnewplatformswillsupportdifferentbusinessmodelswhereclientswillwanttoworkwithadvisersandtapintotheirtechnologicalexpertisetoexploitnewwaysofreachingpotentialcustomersordevelopingnewbusinesspartnerships.Advisorymodelswillbemoredistributedandtechnology-centric,whichwillhelpdriveproductivityandscalabilityofserviceofferings,aswellasgreaterefficiency.Wewillseegrowingopportunitiesemergeforconsultantsinareassuchasdataanalytics,technologyandcybersecurity,asbusinesseslooknotonlytostreamliningtheirtechnologyanddrivingoutcostbutalsotoorientatingtowardshavingtechnologiesthatsupportbetterdataarchitectures,agiledecisionmakingandinnovation.SUSTAINABILITYSustainabilityissuesarebecomingmuchmoreimportantforallclientsandcutacrossawiderangeofadvisoryareas,fromstrategyconsultingthroughtoriskconsultingandtaxconsultancy.ClientswillexpectconsultantstocontributespecificknowledgeabouthowESGmattersareaffectingtheirbusinesses.ThiscouldinvolveadvisingabouttheESGrelatedimplicationsofcapitalexpenditureprogrammesorunderstandingevolvingtaxregulationsandtheirrelatedfinancialimplications.Itmaymeangivingbroaderadviceaboutimprovingclientsustainability,reducingcarbonfootprintsoradvisingonoffsetschemes,oradvisingorganisationsonhowtheycandevelopappropriateperformance-managementsystemstoimprovedatacapture,andreportingonESGissues,orprovidingknowledgeofemergingdisclosureframeworkstoensurethatorganisationsarereportingasrequiredonESGmatters.COLLABORATIONWecanexpecttoseechangesinhowadvisoryteamsworkinthefuture,buildingonhybridandremoteworkingopportunitiestodeliverprojectsfromanylocation,usingadvancingtechnologyforclientengagements,ratherthanphysicalco-locationonclientpremises.Hereagain,thesechangingworkingpracticesaregoingtodemandnewcollaborationskillsasremoteworkingpracticesopenupthescopeforadvisoryfirmslookingtorecruitstrongbenchtalentintotheirorganisations,enablingthemtotapintonewsourcesoftalentanddrivethediversityoftheirworkforces,blendinglocalandoffshoretalent.Thismeansthatcorecapabilitiesinworkinginclusivelywillbecomeevenmoreimportant.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS80PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THETRANSFORMATIONDRIVERFutureopportunity2:EDUCATORSFinanceprofessionalsmaydecidetopursuecareersineducationalroles,supportingthelearninganddevelopmentofthenextgenerationofprofessionalaccountants,ratherthandirectlyactinginbusinessandfinancerolesthemselves.Thisisacriticalvocationstreamthat,whilenotdirectlycontributingtotheactivitiesofcreatingvalueforasustainableorganisations,isessentialinitselfinhelpingtodevelopthenextgenerationoftalent.Futureeducatorsacrosstheprofessionarecriticaltoensuringthatthepipelineoffuturetalentisequippedwiththenecessaryskillsandcapabilitiestodrivesustainableorganisationsvalueandprotectthepublicinterest.Buttheywillbeoperatinginafast-changingandtransformationaleducationlandscape.Technologyistransformingbothhowindividualscanaccesslearning,evolvingthewaysinwhichprofessionalaccountancyeducationisdelivered,withincreasinguseofsimulation,augmentedrealityandotherdigitallyledinterventions,blendedwithmoretraditionalapproaches,aswellastheadventofmicro-credentiallingand‘bite-sizelearning’.Butit’salsogoingtochangeeducators’roleinassessingcompetenceandtrackingtheintendedoutcomesofeducationalinterventions.AndaskeytrendsanddevelopmentssuchasESGincreasinglychangerolesacrosstheprofession,thecontentofwhatisdeliveredwillalsocontinuetochange.EXAMPLESOFCORECAPABILITIESTHATMATTERTOTHEEDUCATORDIGITALTechnologiesaretransformingtheeducationlandscape,andwecanexpecteducatorsacrosstheprofessiontobecomemorecompetentinusingnewdigitaldevelopmentstoenrichtheirteaching.Everythingfromonlinesimulationsorgamificationtoaugmentedorvirtualrealityusingnewemergingtechnologicaltoolswillbeincreasinglydemanded,buttechnologieswillalsodisruptassessmentprocessesaswellasbringingefficienciestohowlearningcontentisdevelopedanddelivered.SUSTAINABILITYAstheroleoftheprofessionevolvesandthebreadthofresponsibilitiesrequiredoffinanceprofessionalsexpands,it’sgoingtobecriticalforeducatorstodeveloptheirknowledgeandexpertiseindifferentareasofESG.TherewillbeanincreasingdemandforlearninginterventionstoincludeassessmentsandexamplesthatbringtolifeproblemsorcasestudiesinvolvingESGmatters.EXPERTISEAttheheartofthefutureeducatorroleistechnicalexpertise.Evolvingstakeholderneedsarechangingtheperformancemanagementandreportinglandscapeandwillhaveabiginfluenceonregulatoryandreportingdevelopments.Changingstakeholders’needswillchangetherolesperformedacrossmanyareasoftheprofession,fromthefutureofauditingthroughtodevelopmentsintaxorcorporatefinance,andontomanagementaccountingandfinancefunctionroles.Asaconsequence,it’sessentialthateducatorsremainfullyuptodateonalltechnicaldevelopmentsacrossmanydifferentareas.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS81PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THETRANSFORMATIONDRIVERFutureopportunity3:ENTREPRENEURSInthefaceofrapidchange,wewillcontinuetoseethecontinuedgrowthofstart-upsandsmallerenterprises.Moreandmorefinanceprofessionalsareattractedtoorganisationsasentrepreneurs.It’saperfectioncombinationforsmallbusinessleaders:astrongfoundationalgroundinginfinancialandbusinessmanagementexpertisecombinedwithapassionforrunningabusiness.Astheglobaleconomyrebalances,opportunitiestoengagenewcustomersrisesastechnologicalplatformsexpandandprovideeverbetterconnectivity,andtheexpansionofmobilenetworks,particularlyacrossemergingmarkets,presentsnewchannelstomarketforstart-ups.Emergingplatformsareallowingentrepreneurstocreatemarketplacesandcollaboratewithcommunitieswherecustomersandbusinessescaninteractbetterandtrade,supportedbyadelugeofworkplaceapplicationsandtheadvantagesofremoteworking,wherebusinessescanincreasinglyberunfromhome,andwheretheentrepreneurofthefuturewillneedtotapintoever-changingtechnologicalcapabilities,usingbusinessacumenandskillsininnovationtodrivecommercialsuccess.EXAMPLESOFCORECAPABILITIESTHATMATTERTOTHEENTREPRENEURDIGITALThegrowthindataishavingatransformationalimpactontheopportunitiesthatwillbepresentedtosmallerbusinessesinthefuture,anddata-savvybusinessleaderspursuing‘digitalfirst’businessmodelswillneedtohavestrongdatacapabilitiesandminetheever-growingdatasetsattheirdisposaltoimproveunderstandingoftheircustomers,drivesalesandidentifynewproductandsaleschannelsforprofitability.Therearegoingtobegrowingopportunitiesfordata-savvystart-upsandentrepreneurstobuildtechnologicalplatformsthatcombineadvancingAIcapabilitieswithsoftware-as-a-servicetoenrichthedataanalyticscapabilitiesofbigbusinesses.SUSTAINABILITYThegrowthinESGinvestingisanotherhugecatalystfortherisingopportunitiesforentrepreneurswhocanusetheirsustainabilityknowledgeandambitiontobuildenvironmentallyfriendlysmallbusinesses.It’slikelywewillseeawealthofnewindustriesemergingandsectorscontinuingtogrowthatwillpresentfurtherstart-upopportunitiesforentrepreneurstoinnovateandbuildsuccessfulbusinesses,forexample,inrenewableenergyorthesharingeconomy.INSIGHTEntrepreneursneedinsightcapabilitiestodevelopsuccessfulnewbusinesses.Innovationandbusinessacumenarecorecapabilitiesforbusinessownersinidentifyingnewideastodrivecommercialororganisationalsuccess.Therearegrowingopportunitiesforentrepreneurswiththepotentialofferedbycryptocurrencyandeasierbusiness-to-businesspaymentsacrossborders,forexample,andthedisruptionstoglobalsupplychainsmayprovidenewopportunitiesfornimbleandagilebusinessestotakeadvantageofleveragingspecificsupply-chaintechnologies.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS82PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THETRANSFORMATIONDRIVERFutureopportunity4:GLOBALBUSINESSSERVICESPROFESSIONALSWithincreasingmarketvolatilityandpressuresonorganisationalefficiencyandcost,largerenterpriseswillcontinuetodevelopanddigitallytransformsharedserviceoperationstoimprovesupportforbroaderbusinessmodeltransformation.Infinanceteams,financetransformationandsharedserviceroleswillcontinuetotransitionasfinancedeliverymodelstapintonewoffshoringandoutsourcingopportunitiestoreducecost,driveoperationalsynergies,andtapintoemergingareasofexpertise.Therewillbecontinuedshiftstoglobalbusinessservice(GBS)modelsthatseektointegratefunctionalsharedserviceoperationsintocross-functionalentitiesthatareabletodeliverandmanageend-to-endprocessesacrosstheorganisation’svaluechain.Thiswilldrivefurthercostefficiencies,givingtheorganisationnewcapabilitiestooperateatscaleandofferingamorecoordinatedenterprise-widecapabilitywithincreasedagilityasthebusinessmodeltransforms.Forfinanceprofessionals,futureGBSenvironmentsoffergreatercareeropportunities.EXAMPLESOFCORECAPABILITIESTHATMATTERTOTHEGBSPROFESSIONALCOLLABORATIONCollaborationskillsareessentialinGBS,asprofessionalsseektoworkacrossandsupporttheirbusinesstoinnovateacrossdifferentbusinessprocesses,drivingprocessefficiencyandeffectiveness,orprovidingenhancedmanagementinformationtosupportbetterdecisionmaking.Stakeholderfocuswillbeanothercorecapabilitydemandedintheseenvironments,asGBSorganisationsbringtogetherpeople,processesandtechnologicalcapabilitiestodriveastepchangeinorganisationaldecisionmakingunderonefunction,butparticularlyascompaniesshifttoa‘digitalfirst’modelandlooktobuildmorepowerfulcustomer-centricstrategies.EXPERTISEGBSoperationscontinuetomoveintohigher-value-addedactivities.SomeGBScentresarebecomingcentresofexcellenceforanalytics,increasingdatagovernanceandbuildingacoreteamofexpertiseinanalyticsthatcanbesharedacrosstheorganisation.Increasingly,theseoperationsarekeytohelpingorganisationsgobeyondlaggingKPIsandinsteadidentifyforward-lookingKPI’sacrossarangeofinternalandexternallyinfluencedindicators,identifyingnewtrendsandcorrelatingdatamuchmoreeffectivelytosupportfasterandbetterdecisionmaking.Astheyspanacrossdifferentfunctions,GBScentresarebetterequippedtogenerateenterprise-wideinsightsandenableaccesstodatathatlooksforwards,notbackwards,andunderstandthecriticalfinancialimplicationsofdifferenttrendsaffectingtheorganisation.INSIGHTGBScentreswillfacenewopportunitiestoaddmorevaluetoorganisationsinareassuchasdigitalenablement,costefficienciesorprocessre-engineering,asbusinessescontinuetotransform.OneclearemergingopportunityforGBSaretheinsightstheycanderivefortransformingenterprisesupplychains.Withaccesstoorganisation-widedata,GBScentresarewellplacedtoexecuteimprovedsupplychainplanningprocesses,aswellasmanagingsuppliersanddrivingtargetedefficiencies.Theyhavethepotentialtoexercisemoreoversightofend-to-endsupplychains,aswellastodevelopKPIs,andtomonitorandreportonsupply-chainperformance.Thismeansfindingadditionalareasofinsightandmakingevidence-baseddatadecisionstoimproveefficiencyanddrivevalue.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS83PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THETRANSFORMATIONDRIVERFutureopportunity5:TECHNOLOGYANDDATALEADERSOneofthemajorchallengesforfinanceteamsismanagingthearrayoftechnologicalapplications,maximisingthepotentialofnewtechnologicaldevelopmentsandgoverningdatawell.Aspressuresgrowtobemoreforward-thinkingandoperaterapidlytoobtainbetterinsights,financeteamsaregoingtoneedprofessionalswithspecificdataandtechnologicalknowledge,whounderstanddatagovernance.Financeteamswillneedexpertswhocancollaboratewithtechnologyspecialistsacrosstheorganisationtobuildthebusinesscaseforsoftwareinvestment,helpmapoutexistingfinanceprocessestounderstandwheretheapplicationofthesetoolswillprovidemostvalue,orengageandsupportprocessredesign,buildimplementationroadmaps,supportprogrammingandtesting,orensureappropriateintegrationofspecificsoftware.Technologyanddataleaderswillbecriticaltoensuringeffectivefinancesystemsmaintenance,developingandmaintainingsystemsprocessesandworkflowdocumentation,helpingresolveandidentifysystemperformanceissues,auditingsystemuseorprovidingriskandopportunityassessmentsforsystemupgrades.Theywillalsoactasakeyliaisonpointforenterprise-wideITgovernance,althoughincreasinglythismaysitunderthepurviewoftheCFO.EXAMPLESOFCORECAPABILITIESTHATMATTERTOTECHNOLOGYANDDATALEADERSDIGITALThetechnologyanddataleadermustcontributestrongawarenessofdifferenttechnologiestotheorganisationasfinancefunctionscontinuetolooktotransform.Asmoreenterprisesdevelopadigitalcore,financeteamshavetheopportunitytobuildmorepowerfultechnologycapabilities,investingin‘best-in-breed’,Cloud-basedapplicationsuchasemergingbusinessintelligenceandanalyticstoolsandtechnologiesthatinterfacewiththedigitalcoreandthathelptoderivereal-timeinsightsfortheorganisation.It’sgoingtobeessentialforfinanceteamstounderstandnotonlythecapabilitiesofthesenewdigitaltools,butalsotheirlimitations.COLLABORATIONTechnologyanddataleadersneedtousestrongcollaborationskillstobuildrelationshipsacrossandbeyondfinanceteams,toensurethatfinancesystemdevelopmentmeetsthestrategicneedsoftheorganisation.Withtheadventofthedigitalcoreandopen-architecturetechnologyanduseofCloud-basedapplications,technologyanddataleadersmaybeengagingwithexternalsupplierstodevelopthebestcombinationofapplicationstosupportfinancefunctionobjectives.They’llneedstrongandclearcommunicationskillsandbeexpectedtoinfluenceseniormanagementandCFOsontechnologicalchoices.Theywillneedtounderstandnotjusttheobjectivesandstrategyofthefinanceteamincraftingtherighttechnologicalresources,butalsocustomerneedsandotherfinanceteamstakeholderstoensurethatthetechnologyselectedenablesfinancetomeettheirneeds.INSIGHTThetechnologyanddataleadercouldbedevelopingthebusinesscaseforsoftwareinvestment,helpingmapoutexistingfinanceprocessestounderstandwheretheapplicationofdifferenttechnologieswillprovidemostvalue,orengagingandsupportingprocessredesign,buildingroadmaps,supportingprogramming,andtestingandensuringappropriateintegrationofspecificsoftware.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS84PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THETRANSFORMATIONDRIVERFutureopportunity6:CFO/CSUITETheCFOrolehasforsometimebeenexpandingfromitstraditionalfinanceremitandisnowintegraltoprovidingstrategicsupportandaddingvaluableinsight.TheCFOiscriticaltothesustainableorganisationsofthefuture,ontheonehanddeliveringtheirusualfinancialstewardshipandgovernanceresponsibilities,butincreasinglyresponsibleforhelpingdrivebusinesschangeandtransformingtheorganisation.Theroleiskeytomeetingwiderstakeholderandsocietalneeds,ensuringthatthebusinesscreatesandsustainslong-termvalueforall.Thisallneedstotakeplaceinabusinessenvironmentthatisdramaticallyevolvingandwherethepaceofbusinesschangeisaccelerating.EmergingtechnologiesinparticularandthegrowthofdatapresentsnewopportunitiesfortheCFOtobethestrategicadvisertotheenterprise,helpingittakebetterandfastercommercialandstrategicdecisionswhileleveragingnewdigitalcapabilitiestodrivebusinessinsight.TheCFOwillalsosupporttheenterpriseinunderstandingandpredictingtheopportunitiesandrisksitfacessothatitcannavigatethefuturebetter.Asstakeholderexpectationsgrow,there’sgoingtobeanincreasingshiftforCFOstooverseewiderperformancemanagementandreportingprocesses,incorporatingESGissuesrangingfromclimatechangeandsustainabilityconcernsthroughtohumancapitalreportingandsocialimpacts.ItwillbeessentialforfutureCFOstocollaborateeffectivelyacrosstheC-suiteandthewiderbusinesstorecognisethebroaderimpactsandactivitiesthatcontributetolong-termperformanceandvaluecreation.EXAMPLESOFCORECAPABILITIESTHATMATTERTOCFOSDIGITALTheCFOofthefuturehastobedigitalevangelist.TheCFOisessentialtoprovidingleadershipacrossthedataandtechnologyspace.Datagovernanceandtheadoptionofnewtechnologiesarekeytotransformingthefinanceorganisationofthefuturefromonethatisbackwardlookingtoonethatfocusesontheunderstandingofthefuturethatmustdrivebusinessstrategy.TheCFOisacriticalplayerinhelpingtransformthebusinessmodelthroughdigitaladoption.COLLABORATIONAsbusinesseslooktoreengineertheirprocessesandcontinuetoevolveoperations,thereisgoingtobeagreaterneedforfinanceteamstoworkacrosstheorganisationtodrivebusinesssynergiesanddevelopnewvaluestreams.TheCFOplaysanessentialroleinorchestratingandcollaboratingacrosstheCsuite,andthisisparticularlyrelevanttohelpingtheirfinanceteamsbuildcross-businessknowledgeandfindopportunitiestodevelopenhancedinsightcapabilitiesandhelptheirorganisationinnovate.SUSTAINABILITYThesustainabilityagendahastobeakeypriorityfortheCFO,whowillneedtoplayaleadershiproleishelpingbusinessestransitiontonetzeroambitions.TheCFOwillalsoleadthetransformationofperformancemanagementframeworksthatmorerobustlycapture,measureandreportonESGactivitiesandmetrics,bothinternallyandforexternalreportingpurposes.ThisistheCFOcontinuingaroletransitionfromthechieffinancialofficertothechiefperformanceofficer.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS85PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIESCareerzone2:TheenterpriseanalystTheenterpriseanalystbringsdatatolife.Thisisthesustainablebusinessandfinanceprofessionalhelpingorganisationscreateandprotectvalueinvariousrolesusingtheirbrilliantdataandfutureinsightskills.They’realwaysthinkingaheadtoimprovetheorganisationunderstandingofthefuture.Theycouldbefinancebusinesspartners,thecommercialadviserstoorganisationswhopartneracrossbusinessesusingstrongdataskillstoanalyseinvestmentcases,runthenumbersonnewchannelstomarketorhelpingdelivernewproductsorservicestomeetchangingcustomerdemands.Theymaybeperformancemanagersorfinancialanalyststransformingperformancemanagementandplanningprocessesattheheartofthesustainablebusinessofthefuture,helpingorganisationsmakecommercialandfinancialdecisionsthatincreasinglyhaveenvironmentalorsocialimplications,ordrivingmoreaccountabilityinpublicsectordecisionmaking.Theycouldbeprojectorprogrammeaccountants,broughtintosupportagileprojectteamsbyanalysingthefinancialimplicationsofmajorbusinessprogrammesasorganisationsseektoinnovateinthefaceofrapiddisruption.Theycouldbetreasuryprofessionals,usingdataskillsandadvancingtechnologiestohelpsecuretheorganisation’sfundingandhelpingmanageincreasingfinancialrisksasthebusinessworldisfurtherdisrupted.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS86PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEENTERPRISEANALYSTFutureopportunity7:FINANCEBUSINESSPARTNERSAttheheartofdecisionmakingisthefinancebusinesspartnerofthefuture.Thisisthesustainablebusinessandfinanceprofessionalasacommercialadviserwithinthefunctionsofanorganisations,contributingbusinessacumenandinfluencingcommercialcolleaguestomaketherightdecisionsatspeedtobuildlong-termsustainablesuccess.Thefinancebusinesspartneriskeytocollaborationwithcommercialfunctions,measuringtheirbusinessperformance,helpingthemimprovetheirstrategicorfinancialpositionsanddrivingbusinessinnovationorincreasingprocessandcostefficiencytoachievelong-termsuccess.Financebusinesspartnersneedtobeabletopresenttodifferentstakeholdersthecommercialtrade-offsandfinancialimplicationsinherentinbusinessdecisions.They’rekeytoinfluencingseniormanagementbutalsotogivingtheircommercialcolleaguesconfidenceinthedecisionsthatarebeingtaken.Theysometimesworkonbusinessinstinctandusetheirbusinessacumenandinsighttosupportdecisions,recognisingthattheyarenotalwaysabletosource100%ofthedataiftheyaretomakedecisionsinatimelymanner.Theirfocusisonforward-lookinginsightsthatmakeatangibledifferencetobusinessoutcomes.EXAMPLESOFCORECAPABILITIESTHATMATTERTOFINANCEBUSINESSPARTNERSDIGITALFinancebusinesspartners(FBPs)willbeincreasinglyexpectedtouseawiderrangeoffinancialandnon-financialdata,aswellasdatathatisbothinternalandexternaltotheorganisationinprovidingtheirfinancialinsightforcommercialdecisionmaking.Asdatasourcesexpandwithintheorganisation,andnewtechnologicalopportunitiesarisetoexploremuchgreaterdatasetsthroughtheuseofAI,andparticularlymachinelearningtechnologies,understandingtheappropriatetools,methods,modelsandtechnologiestoanalyse,interpret,evaluateandcommunicatedataisgoingtobeevermoreimportant.DRIVEFinanceBusinessPartnersrequireincreasingresilienceandneedtobeactionorientatedtosupportthebusinessinachievingitsgoals.TherewillbegrowingpressureonFBPsforthetimelyprovisionandquickturnaroundoffinancialinformationforagiledecision-makinginanenvironmentthatischangingquickly.Corecapabilitiesinchangeorientationorinexploringnewsourcesofinformationtogenerategreaterevidencetosupportbusinessdecisionmakingwillbeessential.AttheheartofthesuccessoftheFBProleistrust,andastheenvironmentbecomesincreasinglycomplex,theFBPneedstobuildtrustedrelationshipswithintheorganisationandwiththeircommercialcolleaguessothattheyhaveconfidenceinthedecisionsbeingmadeandtheanalysisthatunderpinsthem.COLLABORATIONFinanceBusinessPartnersneedstrongcollaborationskillstoworkeffectivelywithcommercialcolleagues.They’rekeytoinfluencingseniormanagement,collaboratingwithkeyfunctionsintheorganisationandoperatingauthenticallytobuildtrustwiththeircolleagues.Businesspartnershelptheircommercialcolleaguesnavigateincreasinglychallengingandfast-changingbusinesssituations.Theirroledependsonbuildingstrongrelationshipsinternallyandexternallybeyondthebusinessacrossdifferentstakeholders,monitoringexternaltrendsanddevelopmentsthatmayhaveanimpactonthecommercialdecisionsoftheorganisation.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS87PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEENTERPRISEANALYSTFutureopportunity8:PERFORMANCEMANAGERS/ANALYSTSTheroleofperformancemanagersandanalystsisattheheartofmanagingsustainableperformanceintheorganisation.Thesearerolesthatnaturallydemandhugeamountsofbusinessacumentounderstandthefinancialnumbersinthebusinesscontext,andpreparebudgets,financialplansandvarianceanalysistosupportsounddecisionmaking.Critically,theyfocusincreasinglyonunderstandingthefuturethroughpredictiveanalyticsandscenarioanalysissothatmanagementcanexecutedecisionsthatgeneratelong-termsustainablevalue.Thereisagrowingremitforperformancemanagers/analystsinrelationtoenterprise-wideperformancemanagement,whichisbecomingmorecriticalinthefaceofwiderbusinessdisruptionandtheneedfororganisationstooperatewithagility.Here,theycanplayacentralleadershiprole,influencinghowbusinessescapture,measureandreportinternallyonbroader‘businessperformance’metrics,recognisingthatthedefinitionsoforganisationvalueandbusinessperformanceareexpanding,andalsounderstandingthatvalueiscreatedanddestroyedindifferentwaysacrossmultiple,interrelatedcapitalsinthebusiness.EXAMPLESOFCORECAPABILITIESTHATMATTERTOPERFORMANCEMANAGERS/ANALYSTSDIGITALTechnologyanddataskillsarenaturallyessentialtothefutureroleoftheperformancemanager/analyst.TheywillbelookingmoretowardsAIandmachinelearninginthefuturetocrunchbigdatasetstopresentdeeperandwideranalysisacrossfinancialandnon-financialdata,providinganalyticalbusinessinsight.Nascentanalyticsandbusinessintelligencetoolsandtechnologieshavethepotentialtotransformdatainsightcapabilitiesandenhancethequalityofforecasting.Thegrowingdemandforreal-timeinformation,predictiveanalyticsandAIwillbeessentialinenablingtheperformancemanagers/analyststoidentifynewpatternsandsupportfasterandbetterdecisionmaking.EXPERTISEPerformancemanagers/analystswillincreasinglyneedstrongperformancemanagementcapabilitiestounderstandtheimplicationsofbusinessmodeltransformationandevolvingstrategiesandtheirimpactonperformancemanagementframeworks,andthevaluedriversoftheorganisations.Theywillneedstrongdatagovernancecapabilitiesandplayanincreasinglyimportantroleindatagovernance,ensuringtherelevanceofdataforreportingandforecastingpurposes,providingmoreforward-lookingassessmentsthatbuildinenhancedriskunderstandinginthecontextofachangingexternalenvironment.SUSTAINABILITYPerformancemanagers/analystsneedtoapplyintegratedthinkingandactiontocreate,protectandcommunicatelong-termvaluefortheorganisationasthevaluedriverswithintheorganisationexpand.TheywillplayanincreasinglyimportantroleinbuildingESGmetricsandindicatorsintoperformancemanagementframeworks.Theywillsupportthedesignandimplementationofnewdata-capturepracticesthatcapturenon-financialinformationdatapoints,aswellassupportingregularreportingandtheprovisionofinformationtomanagementonESG-relatedissues.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS88PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEENTERPRISEANALYSTFutureopportunity9:PROJECT/PROGRAMMEACCOUNTANTSTheprojectorprogrammeaccountantisattheheartofinnovationinthesustainableorganisationofthefuture.Asorganisationslooktoinnovateandtransformmorequickly,they’llformprojectteamsfromdiversepartsoftheorganisationtoaddressparticularbusinessproblemsoropportunities,andtheprojectorprogrammeaccountantwillbeanintegralpartoftheteam.Therangeofprojectsthatprojectsaccountantsareinvolvedinwillbeincreasinglydiverse.They’llbeessentialinhelpingorganisationsdevelopagilebusinesscasesfornewcommercialideas,orhelpingtheorganisationdriveproductorservicechange.Typicallytheywilltakeoverallresponsibilityforthefinancialmanagementoftheprojectfrominitialinceptionthroughtocompletion.Theybringtheiressentialfinancialandbusinessskillstoensuringappropriatecostmanagementofprojects,identifyingkeyissuesimpactingrevenueandcostforecastsrelatingtotheproject,providingfinancialinformationinanagilemannersuchastimelycashflowprojects,aswellasperformingcriticalpathanalysistoprojectcompletion.EXAMPLESOFCORECAPABILITIESTHATMATTERTOPROJECT/PROGRAMMEACCOUNTANTSETHICSProject/programmeaccountantsmayprovidefinancialsupportfororganisationinvestmentdecisionswherethereisathreattoobjectivityon,forexample,projectcostings.It’sessentialthatprojectaccountantshaveintegrityandobjectivityinpresentingthefinancialcasefortheinvestment,ensuringprofessionalcompetenceandduecareinundertakingtheanalysis.INSIGHTProjectaccountantsmay,forexample,supporttheimplementationofnewlarge-scaletechnologyimplementations.Giventhesizeofthepotentialprojectinvestmenttheywillneedstrongcriticalthinkingskills,particularlyregardingdataonprojectcosts,projectcontrolandreporting.Large-scaleprojectsdemandstrongplanningandprojectmanagementcapabilitiestoensuretheyhaveappropriatecontrol.Theprojectaccountantmustprovidetimelyadviceintothekeyfinancialandcommercialimplicationsofdecisionsrelatingtotheproject.Theymaybeexpectedtoinnovatetothink,forexample,aboutdifferentproject-fundingopportunities.SUSTAINABILITYAsbusinessestransform,lookingtotransitiontheirbusinessmodelsandinvestinmoreenvironmentallyfriendlyprocesses,therewillbemoredemandforproject/programmeaccountantsworkingonspecificgreenfinanceinitiativesorcarbonreductionprogrammesacrossorganisations.Theseissueshaveanincreasingimpactonthebusinessstrategic,financialandoperationalplansoftheorganisation,soitsessentialthatproject/programmeaccountantsbringcoresustainabilityknowledgeandunderstanding.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS89PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEENTERPRISEANALYSTFutureopportunity10:TREASURYPROFESSIONALSTreasuryoperationshavebeenatthecentreofmanagingorganisationalliquidity,funding,andfinancialriskmanagementinthefaceoftheeconomicdownturnfromtheCovid-19crisis.Buttreasuryoperationsaretransformingdramaticallyasbusinessmodelschangeandtechnologicalchangesarehavingmajorimpactsonthevisibilityandmanagementoffinancialrisk.Asfundingmodelsforbusinessevolve,andinterestingreenfinancinggrows,therewillbenewopportunitiesfortreasuryprofessionalstoaddmorevaluetoorganisations,streamlinetheiroperationsandleveragetechnologiestodriveinsightsthatcantransformorganisationalfinancing.Wecananticipateagrowingrolefortreasuryoperations,particularlyinareassuchase-commerceanddigitalisationoforganisationfunding,butitistechnologicaldevelopmentsthatwillperhapshavethemostprofoundimpactontreasuryoperationsinthefuture.Thesedevelopmentswilldemandtreasuryprofessionalstodemandnewdigitalskills,whichwillparticularlyvaluableasmanytreasuryoperationsincreasinglylooktocentraliseandstreamlinetheirtreasuryoperatingmodels,drivinggreaterlevelsofautomationandintegrationoftreasurytechnologiesintothebroadertechnologyeco-systemoftheorganisation.EXAMPLESOFCORECAPABILITIESTHATMATTERTOTREASURYPROFESSIONALSCOLLABORATIONAsthenatureoffundingopportunitiescontinuestoevolve,it’sgoingtobecriticalfortreasuryprofessionalstoengagelenderswithnewsourcesoffinance,orastreasuryteamsbecomemoreinvolvedinsupportingorganisationsassupplychainsevolve,herewemayexpecttreasuryprofessionalstobecomemoreinvolvedinworkingacrosssupplychainpartnerstodrivevalueacrossworkingcapital.DIGITALTheapplicationofautomationtechnologiessuchasroboticprocessautomation(RPA)andapplicationprogramminginterfaces(APIs)presentsfurtherfutureopportunitiestoautomatestandardandrepetitivetreasuryprocessessuchasbankreconciliations,andtherewillbenewopportunitiesforfintechorganisationstocontributeadditionalvalueandaddresscurrentchallengesfortreasuryoperationsinareassuchascashforecasting.WecanexpectfurthersophisticationtooinareassuchassmartcontractsandtheuseofBlockchaintechnologies,orERPdevelopmentstosupportbetterdataanalyticsandaccesstoreal-timeinformationacrosscashmanagementandfinancialriskactivitiesfortreasuryteams,aswellastheincreasingdeploymentofCloud-basedtechnologicalapplicationsthatwilldrivescalabilityintreasuryoperationsandsupportcriticalcentralisationandstandardisationambitions.SUSTAINABILITYAkeyareainwhichtreasuryprofessionalswillbemoreinvolvedinthefuturewillbefinancingrelatingtoESGinitiatives.Financingproductsthathaveaclearlinktosustainabilitymetricsandperformanceisagrowingpriority.Treasuryprofessionalswillbemoreinvolvedinhelpingsecurefundingtargetedatsustainabilityinvestmentsbecausethiswilloftensecurebeneficialloaninterestrates.AsESGfundinggrows,sustainabilityknowledgewillbeessentialfortreasurers.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS90PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEENTERPRISEANALYSTFutureopportunity11:CORPORATEFINANCEEXPERTSManyorganisationswillconsidertheroleofmergersandacquisitionstoshoreupexistingmarkets,aswellastoexplorenewopportunitiestoexpandintonewgeographicalmarkets,newvaluechainopportunitiesorfasttrackdigitalcapabilitiesthroughsecuringarrangementswithtechnologyorganisations.Thecrisishasfocusedorganisationalleadershipontheshort-termhealthandsurvivaloftheirorganisationsbut,asthepandemiceventuallyrecedes,theywillapplytheirenergiestoconsideringthelonger-termstrategicbenefitsofdifferentacquisitionandcorporatefinancestrategies.Withrelativelyhighlevelsofeconomicuncertaintyinthenearterm,however,differenttypesofpartnerships,alliancesandjointventuresarelikelytobeexploredtoo,asorganisationsseektotransformtheirbusinessmodels,sometimesoutsideoftraditionalcorporatefinanceactivities.Here,wecanexpectgrowingopportunitiesforcorporatefinanceexpertstosupporttheirorganisationsastheyevolve,whetherthroughtraditionalmergerandacquisitionactivities,orthroughdifferenttypesofpartnershipstructuresinthefuture.EXAMPLESOFCORECAPABILITIESTHATMATTERTOCORPORATEFINANCEEXPERTSCOLLABORATIONDeal-makingisattheheartofcorporatefinanceandmergerandacquisitionactivity.Corporatefinanceexpertsneeddeepcollaborationskillstosupportbusinessstructuralchange.Withgrowinginterestinexploringnon-traditionalmergerandacquisitionactivities,corporatefinanceexpertswillneedstronginfluencingandcommunicationskills,theywillneedtobeskilledinunderstandingthepositiveandnegativeaspectsofdifferentpartnershipmodels,andaclearstakeholderfocusinternallyandexternallywillbevital.DIGITALEmergingtechnologicaldevelopmentsarereshapingtheroleofthecorporatefinanceexpert.Forexample,AIandmachinelearningarespeedinguptheextractionofkeyprovisionsincontracts.Induediligenceactivities,thereviewofsuppliercontractsisexpeditedsignificantly.Morebroadly,technologyishelpingstreamlineprocessessuchassourcingandnegotiation,andservice-levelagreements,aswellashelpingprovideclearerinformationandaudittrailsonsupplierandcustomers.Technologyisalsochangingthewaysinwhichthedatarelatingtocorporatefinancetransactionscanbepresented,withmorevisualtools.EXPERTISETechnicalaccountingknowledgeandspecificcorporatefinanceexpertiseisthebedrockoftheskillsthecorporatefinanceexpertcontributes.ButtheCovid-19crisiswillleavealegacyofnewexpertisechallengesinareassuchasduediligence.Here,thewide-rangingimpactsofthecrisiswillhavehadsignificantanddifferentimpactsonbusinessesthatwishtosell,someofwhichmaybelongterm.Thisputsincreasedpressureonthequalityofduediligencepracticesthatareundertaken,fromacquiringknowledgeontheseller’sliquidityandfundingpositionsthroughtothestrengthoflonger-termfinancialprojections,tounderstandingpotentialfuturesupplychainvulnerabilitiesorfuturerisksthattheorganisationfaces.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS91PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIESCareerzone3:TheassuranceproviderTheassuranceprovideristhesustainablebusinessandfinanceprofessionalbringingnewlevelsofgovernancetoorganisationsbyhelpingprotectandreportonvalueinthedifferentrolestheyperform.Assurers’rolesareessentialforprovidingconfidencetocapitalmarketsaswellasgivingassurancetoinvestorsandwiderstakeholdergroups.Theirrolesarecriticalfordemonstratingtotheoutsideworldthattheorganisationiswellcontrolled,ethicallyled,andattractiveforinvestmentandsecuringcapital.Rolesinthiscareerzonemayfocusonenterpriseriskmanagement,helpingbusinessesthinkaheadandunderstandthegrowingrisksthatareemergingandthreateninglonger-termbusinessperformance.Theassuranceprovidercouldbeattheforefrontofshapingforward-lookingauditpracticestomeettheassuranceneedsoftheorganisation’sstakeholdersasauditingpracticestransformthroughtechnology.Theycouldalsobemovingintotheexcitingandfast-growingareaofESGassurancetobringgreaterconfidencein,andtransparencyto,organisations’managementofESGrisksorthewaytheycapitaliseonESGopportunities.OrtheassuranceprovidermaybeplayingacriticalroleinpublicsectorauditteamstohelpbringmoreaccountabilityandtrusttogovernmentsandpublicsectororganisationsinthewakeofstretchedfinancesfromtheCovid-19crisis.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS92PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEASSURANCEPROVIDERFutureopportunity12:EXTERNALAUDITORSExternalauditorsarekeytoprovidingobjectivityabout,andconfidencein,theviabilityofanorganisationforthefuture,andassuranceoverthefinancialstatements.Theyneedtodischargetheirresponsibilitiesethicallyandwithduecare,ensuringindependence,objectivityandexpertiseintheiractivitiessothattheycanfullymeetexternalexpectations.Butstakeholdersarechangingtheirdemandsanddemandingmorequalityandgreaterinsightintocompanyperformance,particularlyaboutthefutureprospectsoftheorganisation.Therearenewopportunitiesforauditorsfromsmallandmedium-sizedpracticesthroughtolargerauditfirmstobemoreforward-lookingandriskbased,providinginvaluableandhigh-qualityassurancetoorganisations,leveragingemergingtechnologiestoaddmorevaluethroughtheauditprocess.Cognitivetechnologiesaredramaticallyexpandingdataenquirypossibilities,introducingevermorepowerfulauditingpracticesforidentifyingerrors,highlightingcontrolbreakdownsormitigatingfraud.Emergingtechnologiesareevermoreabletoobtainreal-timedataandcontrolinsightsonacontinuousbasisandreportonthese,givingreal-timestreamedinformationtoauditteamsthatcanbesharedvirtuallyandimmediately.Technologyisalsodramaticallychanginghowauditengagementsaredeliveredthroughremotecollaborativeworkingpractices.EXAMPLESOFCORECAPABILITIESTHATMATTERTOEXTERNALAUDITORSETHICSExternalauditorresponsibilitiesforethicsremaincore.Withsignificantbusinessdisruptionandcostchallengestheremaybemorepressureonclientsinareassuchasestimations.It’sessentialthatauditorsexercisetheirprofessionaljudgement,objectivityandduecareintheirreviewoffinancialstatementstoensurethattheyrepresentatrueandfairviewandhavebeenappropriatelypreparedinaccordancewiththeprescribedaccountingstandards.DIGITALExternalauditorshavegrowingopportunitiestoadoptnewtechnologiestoenhancetheauditprocess,drivingclientefficienciesandvalue.They’llneedgoodknowledgeoftheemergingcapabilitiesoftechnologyinareassuchasAIandmachinelearning,asthiswillopenupnewwaysofexploringmuchlargerdatasetsofstructuredandunstructureddata,increasingauditevidenceanddrivingenhancedauditquality.EXPERTISETheCovid-19crisiswillleavealegacyforfinancialreporting,accountinganddisclosurethatwillextendformanyyears.Giventhevolatilityoftheglobaleconomyandcontinuingdisruptionfacingorganisations,thereisgoingtobemorepressureonauditteamstocontributetheirexpertiseinareassuchasaccuracyofforecastingandassuringdisclosuresrelatingtofinancialstatements,particularlyasmorebusinessesseektoaddinforward-lookinginformationtotheirfinancialreports.Here,everythingfromemergingrisksfactorsfacingtheorganisation,impactsonoperations,cashflowandliquidityinformation,goodwill,andnon-financialassetsthathavebeenseverelyimpairedbythecrisiswillalsoberelevantareasoffocusforthefuture.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS93PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEASSURANCEPROVIDERFutureopportunity13:ESGASSURERSInresponsetothebroadeningoutofthereportinglandscapeasthepublicinterestagendacontinuestoshift,differentinternalandexternalstakeholdersneedassuranceondifferentaspectsofcompanyperformance.Thisiscriticaltohelpingsupportorganisationsinthevalue-creationprocess,mitigatinggreenwashingassertionsorprovidinggreaterconfidenceintheorganisation’sstrategy,butitalsoreflectsthefactthatESGissuesareanincreasinglymaterialriskforthebusiness.ThegrowingdemandforESGassurancefromsmallerandmedium-sizedaccountancypracticesthroughtolargermultinationalassurancefirmsisasuperbopportunityforfinanceprofessionals.Organisationswillbeincreasinglyheldtoaccountthroughregulation,reportingframeworksandstandardsondifferentESGissues.TheESGassurerofthefuturemaybeprovidingassurance,forexample,overthewholesustainabilityreportproducedbyanorganisationor,instead,assuranceengagementmaycovercomponentbutcriticalpartsofbusinessactivitywhereeachcomponentmayhaveitsownassurancecriteria.Someofthesemayberequiredtomeetlocallawsandregulations,othersmaybeforinternalstrategicandbusinessreasons.EXAMPLESOFCORECAPABILITIESTHATMATTERTOESGASSURERSSUSTAINABILITYTheESGassurercouldbeassuringthesustainabilitystrategyoftheorganisation,ordeterminingwhetherornotgovernancearrangementsintheorganisationbuildinappropriateenvironmentalorsocialconsiderationstosupportmanagementdecisionmaking.ESGassurersmaybeprovidingmorespecificassurancefromarisk-managementperspectivetoexploretheefficacyofcurrententerpriseriskmanagementprocessesorconcludingonthestrengthofinternalcontrolframeworksformonitoringESGrisks,asbusinessesseektounderstandbetterhowinternalcontrolsandrisksrelatingtoESGlinktovaluecreationandtheexecutionoftheorganisation’sstrategy.ETHICSESGassurerswillbetrustedadviserstotheorganisation,boundbypracticesofconduct,includingintegrity,objectivity,confidentiality,competencyandactinginthepublicinterest.TheywillcontributedeepassuranceexpertiseandhaveabroadremitandpurviewacrossorganisationsthatenablesthemtogiveanindependentviewofkeyESGissues,whichareincreasinglymaterialtocompanyperformanceandsocietalvaluebutwhichalsohugelyaffectorganisationreputationandstakeholderperception.Ethicalbehaviourisessentialinthisrole.COLLABORATIONIt’sgoingtobeessentialforESGassurerstoworkacrossthebusinessandwithexternalstakeholdersforeffectiveassuranceengagement.Theywillneedstrongcommunicationandinfluencingskillstoproviderealtangiblebusinessvalueandimpact,translatingauditfindingsinmeaningfulwaystomanagementandleadershipsothattheyproperlyunderstandthebusinessimpactsinESGareas.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS94PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEASSURANCEPROVIDERFutureopportunity14:PUBLICSECTORAUDITORSWeseegrowingopportunitiesforfinanceprofessionalsauditinginthepublicsectorofthefuture.EvenbeforetheCovid-19crisis,manygovernmentswerechallengedbysignificantdebts,andlocalgovernmentsandotherpublicsectorbodiesfacedincreasingdemandsfromsociety,moreexpectationsonvalueformoney,decreasedfundingfromcentralgovernmentandmorefinancialuncertainty.Butoneofthebroaderchallengesthathasbesetgovernmentandpublicsectorbodieshasbeentheinconsistentapplicationofaccountingpoliciesacrossdifferententitiesandjurisdictions,andacontinuedrelianceoncashratherthanaccrualaccounting.Here,theroleofpublicsectorauditorsinthefutureisverymuchfocusedoncontributinggreatertransparencyandaccountabilitytofinancialmanagement,particularlythroughauditedbalancesheetsthatareproperlydisclosed.Theindependentauditofcorepublicsectorfinancialstatementsincreasesthereliabilityandcredibilityoffinancialreportingacrossthesector,andultimatelyleadstoimprovedaccountabilityandbetterdecisionmaking.EXAMPLESOFCORECAPABILITIESTHATMATTERTOPUBLICSECTORAUDITORSETHICSItisessentialthatauditorsexercisetheirprofessionaljudgement,objectivityandduecareinrelationtoassuranceprocessesacrossthepublicsector.Actingethicallyisessentialintheirroleinbringinggreaterassuranceandtransparencytostakeholdersacrosspublicsectorfinance,butit’sparticularlyrelevantinanenvironmentwherethepublicisdemandinggreateraccountability.ThisisespeciallytrueinthewakeoftheCovid-19crisis,wheregovernmentspendinghappenedquicklytodriveflexibilitybutspendingdecisionswerenotalwaysmadethroughtheappropriatenormalchannels,andwithagrowinguseofsingle-sourceprocurementactivities,oftenwithoutpublictenders.SUSTAINABILITYOnecriticalareaforsupremeauditinstitutions,forexample,isprogressthatgovernmentsaremakinginrelationtotheUnitedNationsSustainableDevelopmentgoals,the17interconnectedsocial,environmental,economicandinstitutionalobjectivestobeachievedby2030,withgovernmentsaccountableandhavingprimaryresponsibilityforfollowupandreviewimplementationprogressatnational,regionalandgloballevels.Here,theroleofsupremeauditinstitutionsandpublicsectorauditorswillbecriticalinhelpinggovernmentsunderstandhowtheyarealreadycontributingtotheachievementofthegoalsthroughspendingandpolicyinitiatives,aswellasprovidingassurance–trackingprogress,andmonitoringimplementationofactivitiesthatsupportSDGachievement.DIGITALThepublicsectorauditorwillneedtodeployarangeoftechnologyskillsinfulfillingthefuturedemandsoftherole.Theywillbeusingnewanalyticstoolsandtechnologiestoquerynewsourcesofinformationandexpandingdatasets,particularlyhereusingAIandmachinelearningtoexploredatatodrivemoreassuranceonauditevidenceaswellasusingtechnologytoproducemoreforward-lookingvalueanalysisusingreal-timeinformation.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS95PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THEASSURANCEPROVIDERFutureopportunity15:INTERNALAUDITORS/RISKMANAGERSTherewillbegrowingopportunitiesarisingforaccountantsasinternalauditandrisk-managementprofessionals,helpingorganisationsoperatesustainablyinthefuture.Asorganisationsseektotransformoperationalprocesses,andasbusinesscyclesspeedup,internalauditprofessionalsneedtoensurethattheorganisationhasappropriateinternalcontrolframeworksandrobustlinesofdefencetomitigatekeyoperational,financialandstrategicrisks.They’reessentialtothecredibilityofthebusinessandcanhelpbycontributinganimpartialviewofkeyperformance,riskandcontrolaspectsofthebusiness.It’sgoingtobeacontinualchallengeforinternalauditandriskmanagementteamstoensurethattheycontinuetoprovideappropriateoversightinthefaceofsignificantbusinesschangeandasnewrisksemerge.Inparticular,theCovid-19crisishascrystallisedfurthertheneedforriskmanagementtoshiftfromadisciplinethatiscompliance-centrictoonethatistrulyintegratedintotheorganisation’sstrategy,focusingonmanagingandmitigatingstrategicrisksforemergingvalueleversacrossthebusiness.Today’senterpriserisksaremoreinterconnectedthanpreviously,andratherthanbeingastand-aloneexercise,goodriskmanagementfocusesmuchmoreonexecutingbusinessstrategywhilecontinuouslybuildinginstrategicriskassessments.EXAMPLESOFCORECAPABILITIESTHATMATTERTOINTERNALAUDITMANAGERS/RISKMANAGERSDIGITALDigitaldevelopmentsandthegrowthindataaredramaticallyshapingandchangingthenatureofrisksorganisationsarefacing,fromdatacompliancerisksanddatabreaches,throughtoreputationalrisks,cybersecurityleaks,ethicalconcernsinrelationtocognitivetechnologiesandAIandtheriskspresentedthroughtheexpansionoftheIoTandsmartdevices.Buttechnologyisalsogivingriskmanagersandinternalauditorsnewopportunitiestoshoreupinternalcontrolframeworksandtogatherreal-timeriskandcontrolinformationacrosstheorganisation.It’schangingtheabilityofrisksmanagersandinternalauditorstotapintovastquantitiesofunstructureddatathroughnon-traditionalchannelsandbuildamoreholisticunderstandingofthevulnerabilitiesofexistingcontrolframeworksorrisksemergingacrosstheorganisationallandscape.SUSTAINABILITYRiskmanagersneedagrowingunderstandingofsustainabilityissues,andESGissueswillneedtobeincreasinglyintegratedintoERMframeworks.Forexample,anunderstandingspecificallyoftheclimate-relatedrisksfacingtheorganisation,orrisksinrelationtoreportingagainsttheUNSustainableDevelopmentGoals.ESGrisks,inparticular,areincreasinglyinterconnectedwiththeachievementofbusiness-wideobjectivesandbusinessdecisionmaking.COLLABORATIONAstherisklandscapecontinuestochange,it’sgoingtobecriticalforinternalauditandriskprofessionalstobuildstrongercollaborativerelationshipsacrosstheorganisationtounderstandholisticallyhowthenatureofriskspresentedtotheorganisationischanging.Today’senterpriserisksaremoreinterconnectedandgoodriskmanagement,ratherthanbeingastand-aloneexercise,requiresexecutingbusinessstrategyandoperationseffectivelywhilecontinuouslybuildinginstrategicriskassessments.Here,thereisagrowingneedforbusinessestocontinuetobeagileandresponsivetoemergingrisks,andtohavemechanismsandprotocolsinplacetoreporttheseandactonthemquickly,particularlywheretheyarematerialandpresentchallengestoachievementofbusinessgoals.Collaborationiskeytoeffectiveandagileriskreporting.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS96PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIESCareerzone4:ThestakeholderreporterThestakeholderreporteristhesustainablebusinessandfinanceprofessionalattheheartoftheorganisation,reportingperformanceexternallyinmoremeaningfulwaysinthefaceofgrowingstakeholderdemands.Thestakeholderreportermaybeworkingincorporatereportingorpublicsectorreporting,leadingchangeinthewayorganisationsreporttheirvaluecreationstorywithinthefinancialstatementsandbeyond.HeretheycouldbeplayinganincreasinglyimportantroleinsupportingwiderreportinginitiativessuchascarbonorESGreporting,respondingtogrowingstakeholderdemandsformoretransparencyonorganisationalimpactsandoutcomes.Ortheycouldbeemployedinfinancialcontrollershiproles,workingattheheartofsustainableorganisationstoensurestronggovernanceandstewardshipoverorganisationalfinances.Theymaybeinvolvedinmorespecialistrolessuchasleadingtaxcomplianceandreportinginitiativesastaxregulationcontinuestoevolve.Ortheycouldbeleadinginvestorrelationsactivities,helpingbusinessesrespondtothechanginginvestorlandscapewithanincreasingfocusparticularlyonESGissuesasinvestorsbecomemoreawareandengaged,wishingtoinvestcapitalinorganisationsthathavepurposeandthatareenvironmentallyandsociallyaware,andthatseektoproducesustainablereturnswithpositivesocietalimpacts.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS97PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THESTAKEHOLDERREPORTERFutureopportunity16:CORPORATEREPORTERSEmergingdriversofchangearedramaticallyreshapingtheexternalreportinglandscapeforthosesustainablebusinessandfinanceprofessionalswhoserolesincorporatereportingfocusonstatutoryreportingandcompliancewithfinancialreportingstandards.Whilefinancialstatementswillremainacornerstoneofcorporatereporting,callswillgrowtoexplainthevaluecreationinitswidestsense,demandingorganisationsreportonthewidersocial,communityandenvironmentalimpactsthatareintegraltohowcompaniescreatelong-termvalue.Here,sustainablebusinessandfinanceprofessionalsintheexternalreportingspacewillnotonlybereportingagainstfinancialreportingstandards,butwillbetaskedincreasinglywithreportingagainstothermandatedandadvisorydisclosureswiththeambitionoftellingamorecompletestoryabouthowthebusinessmodelandfinancialstrategyaresustainableforthelongerterm.Oneofthekeyareasinwhichwecouldseeanexpansionofthecorporatereporter’sroleiswithinnaturalcapitalreporting.Thisisafast-evolvingareathatisincreasinglypushedtothetopoftheregulatoryagenda,andwecanexpectthisareatogrowinthefutureasinterestincreases.EXAMPLESOFCORECAPABILITIESTHATMATTERTOCORPORATEREPORTERSETHICSCorporatereporterspreparefinancialstatementsandotherreportsinaccordancewithallregulationsandlaws.Disclosureshavetobepreparedethicallywithcompetence,duecareandprofessionaljudgement.Astheinvestorandwiderstakeholdercommunitiesrelyoncorporatereportsasthebasisfordecisionmaking,it’sessentialthatcorporatereportersbehaveethicallyinthisrespect.DRIVECorporatereportersfaceachangingreportinglandscape,withstakeholdersexpectingbroaderdisclosuresandclearerarticulationofhowtheorganisationiscreatinglong-termvalue.It’simportantthattheydemonstratepersonaldriveandleadershipinhelpingevolvecorporatereportingpracticessothatexternalreportssharemoremeaningfulinformation.Thisrequirescorporatereporterstodemonstrateawillingnesstobepreparedtochange,toquestionexistingreportingpracticesandthinkaboutnewwaysinwhichthecorporatereportscanbeimproved.COLLABORATIONCorporatereportingprofessionalswillincreasinglyneedtocollaborateacrossabroaderrangeofinternalstakeholderstopiecetogetherthecorporatestory.Fromsustainabilityspecialiststoin-housetaxexpertsthroughtohumanresources,asreportingrequirementsexpandthereisagrowingneedtoreachouttodifferentexpertsacrosstheenterprisetoensurethatappropriatedataandinformationcanbesourcedforexternalreportingpurposes.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS98PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THESTAKEHOLDERREPORTERFutureopportunity17:CONTROLLERSThefundamentalsofgoodfinancialcontrollershipandaccuratefinancialcontrolandfinancialreportingremainessential.Strongcontrolandgovernanceovertheaccountingoperationsofanorganisationareattheheartofensuringitsfinancialsustainability.It’sakeyroleintheproductionoftheannualfinancialstatements,andensuringallfinancialreportingiscompliantwithrelevantaccountingstandardsandregulations,aswellasprovidingconfidenceinfinancialriskmitigationmeasuresandtheeffectivenessofunderlyingcontrolframeworks.Theroleoffinancialcontrollersinthepublicsector,inparticular,isgoingtobecomemoreimportant,asgovernmentsandpublicsectororganisationsreflectontheadvantagesoftakingamore‘balancesheetapproach’tomanagingtheirfinances.ThishasbeenbroughttotheforebytheCovid-19crisis,anditschallengestogovernmentandlocalpublicsectorspending.Financialcontrollersherecanplayaninfluentialroleinprovidingbalancesheetinformationthatimprovesleadershipdecisionmakingaswellasgivingalineofsightonfuturetargetsforfiscalspend.EXAMPLESOFCORECAPABILITIESTHATMATTERTOCONTROLLERSDIGITALPeriodclosesareakeyactivityforcontrollershiproles,andcurrenttechnologiesexistacrossplanningandgeneralledgeraswellasconsolidationandreportingactivitiesthatcanbeinterrogatedtoproducethefinancialstatements.Butincreasingly,withthedevelopmentofthedigitalcoreandnewconnectedapplications,aswellastheuseofroboticsandcognitivetechnologies,therearenewopportunitiestoautomateandspeedupmonth-endandyear-endprocesses,includingenhancedfinancialconsolidationpractices.INSIGHTWithchallengedgovernmentfinancesinthewakeoftheCovid-19crisis,it’sgoingtobekeyforfinancialcontrollersinthepublicsectoracrosstheworldtobringstronginsightskillstohelptransformfinancialmanagementpracticesandshifttobalancedsheet-ledapproachestodrivebetteraccountabilityandtransparencyonpublicspending.SUSTAINABILITYThereisapotentiallygrowingremitforfinancialcontrollersinproducingaccurate,reliableandconsistentfinancialinformationforbusinessestosupportwiderESGreportingactivities,fromhelpingdevelopbettergovernancearrangementsforESGrisksandopportunities,articulatingthelinkbetweenESGactivities,financialvalue,strategyexecutionandthebusinessmodel,aswellasdevelopingrelevantandcontextualisedmetricsandtargetstohelpmanageESG-relatedrisksandopportunities.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS99PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THESTAKEHOLDERREPORTERFutureopportunity18:TAXEXPERTSAnothercriticalareaofopportunityforthefinanceprofessionalasareporterwillbeintaxroles,whichremainessentialinsupportingorganisationstocomplywithrelevanttaxrulesandregulationsaslegislationgrowsincreasinglycomplex.Thisisparticularlytrueininternationaltax,wheretaxdepartmentsareincreasinglyrequestedtosupplymoregranulardetailsaboutbusinessactivityacrossdifferentjurisdictions.Withgovernmentslookingtore-boosttheirbalancesheetsandrecapitalise,wewillseecontinueddevelopmentsintaxpolicyfromauthorities,alsosupportedbytechnologyenabledreportinginitiatives,whichwillplacehigherexpectationsonthetimelinessofcorporatetaxreturns.Here,increasingly,taxcomplianceexpertsareusingautomationtoolsandemergingcognitivetechnologiestofulfiltaxcomplianceresponsibilitiesasthereportingoftaxdigitalises.Thereareotherchangesimpactingtaxexpertstoo.Asbusinessesincreasinglydigitalise,thiswilldemanddeeperadvisoryskillsfromtaxprofessionalsinareassuchassupplychainrestructuringorsustainabilityissues,andashiftto‘higher-value’taxwork,aswellasintroducingcomplexitiesastowhererevenueshouldberecognisedacrossdifferentlegaljurisdictions.EXAMPLESOFCORECAPABILITIESTHATMATTERTOTAXEXPERTSDIGITALTaxrolesarecontinuingtoevolveinresponsetochangingtechnologicalopportunities.Digitalisationistransformingbusinesstaxreturns,newemergingautomationtoolssuchasadvancedOCRcapabilitiesareimprovingdatascanningprocesses,RPAtechnologyisincreasinglyautomatingtaxformcompletionordataextractionactivities,andAIishelpingtaxprofessionalsquerylargerdatasetsorcomplicatedlegalorcontractualdocuments.Thesecanbeusedtodrivebusinessvalueinmanydifferentareas,suchasidentifyingnewopportunitiesforcapitalallowancesordrivingefficienciesininternationaltaxpayments.INSIGHTAstaxlegislationchangesandnewtechnologiesarebroughtonstream,therearenewopportunitiesfortaxprofessionalstocontributeinsight.Theuseofemergingdesigntools,forexample,canhelppredictoptimalinvestmentandproductionstrategiestomeetdefinedtargetssuchaseffectivetaxrates,orpredicttheimplicationsofemergingtaxregulationsandproactivelysuggestandprompttaxcompliancespecialistsforresponses.EXPERTISETaxprofessionalsneedtoensurecompliancewithallrelevantstandards,policiesandlegalrequirements.Asbusinesscomplexitygrowsandorganisationstransform,therewillbedifferenttaximplicationsarising,forexampleonESGissues,orcross-bordertaximplicationstoconsider.Taxlegislationisbecomingmorecomplexandchallenging,andit’sessentialthattaxprofessionalshaveskillsinawiderangeofdifferenttaxareasrelevanttotheorganisation.TRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS100Futureopportunity19:INVESTORRELATIONSShiftingmarketforceswillaffectthefutureofinvestorrelations(IR)astheinvestorcommunitybecomesmoreawareandengaged,wishingtoinvestcapitalinorganisationsthathavepurpose,thatareenvironmentallyandsociallyaware,andthatseektoproducesustainablereturnswithpositivesocietalimpacts.Theinvestorrelationsroleisgoingtobeincreasinglyimportantinbuildingtrustbyarticulatinghowthecompany’sbusinessstrategyandvaluecreationstoryarelinkedtoitsoverallpurpose.Here,investorrelationsteamswillincreasinglyneedtoexplainhowthevaluedriversoftheorganisationanditsactivitiesarecreatingvalueforallstakeholders,includingemployees,customers,communities,andothervestedstakeholdergroups,aswellasshareholders,tojustifytheirsociallicencetooperate.NaturallyinvestorrelationsteamswillbemoreheavilyinvolvedinworkingwiththeinvestorcommunityonESGissues,andtoensurethattheorganisationisnotseentobegreenwashing.Withgrowingstakeholderinterestsincompanyperformance,IRspecialistswillcontinuetobroadenouttheirexternalengagementsfromfinancialmedia,ratingsagenciesandotherstakeholderstoensureappropriatecommunicationtotherightaudiences.Here,digitaldistributionchannelsandaccesstosmartdatawillgiveIRprofessionalsnewwaysofconnectingwithandunderstandinginvestors.EXAMPLESOFCORECAPABILITIESTHATMATTERTOINVESTORRELATIONSSPECIALISTSDIGITALTechnologiesaretransformingtheinvestorrelationsspace.Withgrowingstakeholderinterestsincompanyperformance,IRspecialistswillcontinuetobroadenouttheirexternalengagementsandindoingsotheywillhavetocontinuetoensuretheyhaveappropriateskillsacrossdifferentdistributionandcommunicationchannelsandtechnologies,aswellasensuringtheyhavestrongdataanalysiscapabilitiestounderstandandalignkeycorporatemessagingtodifferentstakeholdergroups.SUSTAINABILITYIRprofessionalsfacegrowingscrutinyfrominvestorsonanincreasinglywiderangeofESGissues,fromcarbonfootprintsthroughtoresponsibletaxpracticesormodernslavery,andtheenvironmentalrecordofanorganisationincreasinglyaffectsitscostofcapital.It’sessentialthatIRprofessionalshaveastrongawarenessofESGissuesacrosstheorganisationvaluechain,andthattheyareabletocommunicatetheESGstorytoexternalstakeholdersinatruthfulandcompellingway.INSIGHTThereisagrowingneedtodemonstrateawiderunderstandingofbusinessstrategyandvaluecreationasbusinessescontinuetotransform.Withnewbusinessmodelsemergingtocreatedifferentvaluestreams,widerinsightsfromacrosstheorganisationandfromtheexternalenvironmenttoexplaintheorganisationalcontext,itsstrategyforthefutureanditsperformancewillbeincreasinglydemanded.IRprofessionalswillhavetopossessnewcriticalthinkingskillsforanalysingmore,andmorevaried,datasources,aswellasbeingpreparedtoinnovateandexploitnewemergingcommunicationchannelstodriveengagement.PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THESTAKEHOLDERREPORTERTRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS101Futureopportunity20:PUBLICSECTORPERFORMANCEREPORTERSPublicsectorperformancereportersfaceamyriadofdifferentchallengestonavigateinthefuture.InthewakeoftheCovid-19crisispublicfinancesarechallenged,andtheroleofthepublicsectorperformancereporterwillbecriticaltohelpingrebuildeconomiesandrestorepublicfinances,andsupportingdrivestowardsgreateraccountabilityandvalueformoneyinexpenditureandserviceprovision.They’llbeessentialinhelpingproducerobustfinancialinformationandparticularlyinpromotingtheuseofbalancesheetandaccrual-basedaccountingprocessesratherthancashaccounting.Thiswilldriveclearerunderstandingofthetruefinancialimpactsofpolicydecisionsandincreasedclarityontherealpositionofpublicfinances,andsounderpinfinanciallysustainabledecisionmaking.Butincreasinglythereporter’spurviewwillneedtoextend,reportingonawiderrangeofsocial,natural,humanandfinancialcapitalsthataccuratelyreflecttherealitiesandtrade-offsofpolicymakers’decisionmaking.Theywillplayanessentialroleinhelpingdevelopandreportonmetricsthatprovidebroaderassuranceonpublicfinancesbutthatalsocriticallysupportbalancedsustainablepublicfinanceforthefuture,andameasuredapproachtotheallocationofpublicinvestment.EXAMPLESOFCORECAPABILITIESTHATMATTERTOPUBLICSECTORPERFORMANCEREPORTERSDRIVEWithstrainedfinancesandincreasingpressuresongovernmentsandpublicsectorserviceprovision,it’sgoingtobecriticalthatpublicsectorperformancereportersdemonstrateresilienceandpersonaldrivetogetthingsdone.They’llbekeytohelpingtransformpublicsectorfinancialmanagementtosupportmoreeffectivegovernance,sobeingadaptabletochange,buildingtrustedrelationshipsandauthenticitywillbekeytosuccessfulfulfilmentofthisrole.COLLABORATIONCollaborationskillswillbeessentialtopublicsectorperformancereporters.Intheyearsahead,withhighlevelsofpublicsectordebtandcontinuedstrainonfinances,they’llplayacriticalroleinhelpingpolicymakersexecutedifficultdecisionsthatinvariablyinvolveprioritisationandtrade-offs,givenlimitedfundingoptions.Here,theywillneedstronginfluencingandengagementskills,workingwithpolicymakerstohelpthemunderstandandcalibratethedifficultdecisionsthatneedtobetakenandtheirfinancialandvalueimplications.EXPERTISEAcrucialareaforpublicsectorperformancereportingwillbethecontinuedtransitiontobalancesheetapproachestomanagingfinance,accrualaccountingandashiftawayfromcashaccountingpractices.Here,publicsectorperformancereporterswillneedtocontributetheirsignificantexpertiseandunderstandingofrelevantrulesandregulations,ascallsforthewideradoptionoffullaccrualInternationalPublicSectorAccountingstandards(IPSAS)grows,toensurethatthefinancialinformationproducedpresentsamoreaccuratepictureofthefinancialpositionandsupportslonger-termandbetterpublicsectordecisionmakingthatcreatessustainablevalue.PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSFUTUREOPPORTUNITIES:THESTAKEHOLDERREPORTERTRANSFORMATIONDRIVERSENTERPRISEANALYSTSSTAKEHOLDERREPORTERSASSURANCEPROVIDERS102PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSREFERENCES103PROFESSIONALACCOUNTANTSATTHEHEARTOFSUSTAINABLEORGANISATIONSREFERENCESA4S(AccountingforSustainability)(2021),NavigatingtheReportingLandscape<https://www.accountingforsustainability.org/content/dam/a4s/corporate/home/KnowledgeHub/Guide-pdf/Navigating%20the%20Reporting%20Landscape.pdf.downloadasset.pdf>,accessed11August2021.ACCA(2018),GrowingGlobally:HowSMPscanUnlockInternationalAmbitions<https://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2018/july/growing-globally.html>,accessed10August2021.ACCA(2020a),Accountants,PurposeandSustainableOrganisations<https://www.accaglobal.com/gb/en/professional-insights/pro-accountants-the-future/Accountants_Purpose_Sustainable-Organisations.html>,accessed9August2021.ACCA(2020b),NewModelsofPublicProcurement:AToolforSustainableRecovery<https://www.accaglobal.com/gb/en/professional-insights/pro-accountants-the-future/New_models_public_procurement.html>,accessed11August2021.ACCA(2020c),FutureReady:AccountancyCareersinthe2020s<https://www.accaglobal.com/gb/en/professional-insights/pro-accountants-the-future/future_ready_2020s.html>,accessed12August2021.ACCA(2021a),FinanceFunctions:SeizingtheOpportunity<https://www.accaglobal.com/us/en/professional-insights/pro-accountants-the-future/finance-functions-seize-opportunity.html>,accessed12August2021.ACCA(2021b),RethinkingRiskfortheFuture<https://www.accaglobal.com/my/en/professional-insights/risk/rethinking-risk.html>,accessed12August2021.ACCA(2021c),Groundbreakers:GenZandtheFutureofAccountancy<https://www.accaglobal.com/sg/en/profess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