CIMA P1 Syllabus A. Cost Accounting For Decision And Control - Accounting for Environmental and Sustainability Factors - Notes ^{1 / 7}

Accountants have a crucial role in connecting sustainability to the broader business agenda. They help organisations understand how sustainability impacts their resilience and develop strategies for long-term success.

There is a growing expectation from society that businesses take responsibility for sustainability issues. These issues can have a significant impact on financial performance and value creation over time. Accountants assist organisations in navigating these challenges and opportunities.

Sustainability means meeting present needs while ensuring the ability of future generations to meet their own needs

To thrive, organizations need to consider the long-term consequences of their decisions. Investors now consider Environmental, Social, and Governance (ESG) information to assess a business's potential for long-term value creation and sustainability.

This is evident from the increasing adoption of ESG-focused investment strategies and the rise of ESG resolutions from shareholders.

Organisations that effectively demonstrate their ESG capabilities through activities, accounting practices, and disclosures are more likely to attract investors interested in sustainability.