How have companies reacted to COP26?
As many companies will already know, COP26 took place in Glasgow last month and fuelled many firms to commit to going Net-Zero by 2050.
Currently, there are several green taxes already in operation, such as the Climate Change Levy (which encourages reduced greenhouse gas emissions) and the Carbon Price Support tax (this increases the cost of fossil fuels to promote investment in low-carbon electricity).
However, collectively these taxes accounted for just six per cent of the taxes within the 2019-20 tax year, which is not a huge incentive to go green!
Following the climate change summit, most large firms in the UK have been tasked with presenting plans on how they aim to achieve Net-Zero by 2023. But small and medium-sized enterprises (SMEs) account for approximately 90 per cent of global business, and therefore will also play a vital role in building a greener future.
To meet the Net-Zero goal by 2050, The Association of Chartered Certified Accountants (ACCA) and Chartered Accountants Australia and New Zealand (CA ANZ) released a sustainability Playbook for accountants and SMEs. The Playbook contains a range of guidance on how to adopt a more sustainable approach to business whilst explaining the importance of the global need for action against climate change.
The ACCA and CA ANZ stress the importance of acting with urgency to reshape business models to consider sustainability at the centre of decision making. The Playbook outlines how accountants can effect real change by advising and supporting structural change to battle climate change.
If you are thinking about adopting new sustainability measures and need help accounting for this cost, please contact us.