The World Business Council for Sustainable Development (WBCSD) and the Association of International Certified Professional Accountants (the Association) have announced their first joint project to set sustainable performance management measures to improve corporate reporting
With over 80% of a company’s value now locked up in intangible assets, including brands, trust, customer satisfaction, patents and human resources, businesses need to expand their financial reporting beyond financial data to assess their performance.
In addition, companies need to respond to new risks including environmental and social risks, representing major threats both in terms of likelihood and impact.
Companies need to use financial and non-financial information to drive long-term strategies. However, there is still a significant gap between the information that CEOs receive and what they actually need to make decisions against the changing global landscape.
The collaboration between WBCSD and AICPA-CIMA will focus on performance management practices that help drive long-term business success, identify weaknesses in current systems and processes and look at new unique ways of solving performance management issues for the modern business era.
Professor Dr Rodney Irwin, managing director at WBCSD said: ‘The scale of the challenges we face requires bold collaboration. We have chosen to work with the Association because they train, support and serve the accounting profession who, we believe, have a critical role to play developing mainstream measurement, management and decision-making processes for the myriad of new challenges facing global business.’
Ash Noah, managing director – CGMA Learning at AICPA-CIMA said: ‘As new and emerging technologies are disrupting traditional business models, finance professionals now need to have a holistic understanding of their businesses to explain insights, explore future scenarios, mitigate risks and assess new opportunities.
‘Our collaboration with WBCSD on integrated performance management will help provide accountants and finance professionals with the tools they need to seize new opportunities, manage new risks and lead transformation across their businesses to create value for all stakeholders.’
The work brings together the strength of the world’s largest member accounting body, its 657,000 members and students, as well as over 200 major business players with a mission to accelerate the transition to a sustainable world.