Chair's corner.
Author | Almonte, Ernest A. |
In recent weeks and months, the Institute has been very involved in coordinating the profession's response to the economic crisis, which now officially is labeled a recession. It is so clear to me and others, indeed everyone, that one lesson to be learned (or re-learned) is the need to wisely manage and use your assets while you have them so you can minimize the effects of possibly catastrophic events that may be down the road.
This lesson needs to be applied to the world's natural resources. One effort advocating a deliberate, thoughtful approach in this area is the Accounting for Sustainability project, founded by Prince Charles in 2004. The AICPA is a member of the group, which includes accounting organizations from around the world and private- and public-sector participants. In fact, more than 150 organizations have collaborated on the project so far. The group is looking at ways the accounting profession can help companies and organizations address the important issue of managing our earth's resources. As they say, they aren't making any more land.
According to the U.S. Environmental Protection Agency, sustainability means, "meeting the needs of the present without compromising the ability of future generations to meet their own needs." Accounting for Sustainability (A4S) is intended to develop practical tools that would make it possible to better integrate environmental and social performance into an organization's core strategy and financial performance. A central belief of the overall effort is that accountants can play a critical role in helping organizations effectively measure and account for their environmental and social performance.
A4S focuses on three key areas:
* Integrating sustainability reporting into management and financial reporting.
* Embedding sustainability into day-to-day decision making.
* Creating a network and communications opportunities for organizations actively seeking to break new ground and adopt developments in accounting for sustainability.
As a testament to...
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