Environmental Management for Sustainable Development

This article discusses the responsibilities of professionals in maintaining the environment and addressing climate change. It also highlights the contribution of accountants in climate change mitigation and sustainability efforts.

Environmental Management for
Sustainable Development
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Table of Contents
Introduction.................................................................................................................................................3
My profession..............................................................................................................................................4
Contribution to addressing climate change.................................................................................................5
Contribution to sustainability......................................................................................................................7
Conclusion...................................................................................................................................................8
Bibliography...............................................................................................................................................10
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Introduction
Maintenance of environment is the biggest threat to living creatures of the planet.
People are engaged in destroying environment for their short term gains, without
thinking of the long-term impact of these activities. (Pachauri & Meyer, 2014) Affecting
environment for petty short-term gains will be responsible for providing the future world
unlivable for the future generation of the planet- for all living creatures. To ensure proper
balance of the environment of the planet, every individual and organization has equal
responsibilities. This article will highlight the responsibilities of the professionals of a
specific domain to maintain the environment with enhancement of its present condition
with specific issue of climate change in spite of different blocks created by the
stakeholders of the organization. My profession is accountant. These professionals are
responsible for maintenance of financial information and presentation of them through
preparation of financial reports as per the guideline set by the accounting standard
boards namely, Australian Accounting Standard Board (AASB), International Financial
Reporting Standards (IFRS), and International Accounting Standard Board (IASB).
This article will highlight my contribution in respect of climate change along with
assurance towards sustainability as an accounting professional of Australia and New
Zealand. (Nova, 2009) The discussion will end with a conclusion to recommend more
useful effort towards mitigating the impacts caused to the environment by climate
change and effort to ensure sustainability by the contribution of accounting
professionals.
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Figure SPM.2 (IPCC, 2014)
My profession
As per Australian and New Zealand Standard Classification of Occupation-First Edition,
Revision 1, my profession is classified with Major Group 2 Professionals. (ABS, 2016)
Under this group, Sub Major Group 22 – Business, Human Resource and Marketing
Professionals is scheduled. Under this Sub Major group, minor group 221- Accountants,
Auditors and Company Secretaries is found as per the website Australian Bureau of
Statistics under Government of Australia. Specific role of Accountant is also specified
under Unit Group 2211 Accountants. (ANZSCO, 2016). Demand of this profession is to
be endorsed by license or registration by the respective authorities for qualification as
per ANZSCO; Skill Level 1.
I am working as an accountant in an agricultural firm. This firm is situated in Victoria
Province and is engaged in different agricultural activities including crop growing,
fisheries and dairy farming. My job is to ensure proper maintenance of financial
accounting of this firm by using the financial information generated during the business
activities of the firm with finalization through preparation of different financial reports
namely income statement, cash flow statement, consolidated financial position of the
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organization along with other analytical presentations to enhance the understanding of
the stakeholders about the financial position of the firm. This firm is with the legal status
of company registered under ASX. (Business, 2018)
My regular job is to enter the financial information in general ledger through journal
entries. (CPA, nd) Main objective of this work is to ascertain proper treatment of
financial information in the accounting system so that the derivation of gross margin, net
margin, calculation of dividend to the shareholders and transfer to owners’ equity is
being derived. (Busienss, 2018). The consolidated financial position would project value
of assets and liabilities to ascertain the financial strength of the company. Derivation of
different financial ratios is another major area of my job related to management
accounting. This exercise helps the management to decide on major strategic issues
related to financial condition of the company. Cash flow statement is elementary to
ascertain the fund management of the company by deriving the inflow and outflow of
fund of the company. There are other allied jobs like payments to supply chain
associates and management of receivables as per norms set by the contracts and the
management guideline for those stakeholders. All these jobs would ensure covering the
domain of accounting jobs for the company. Through these jobs, I would be able to
derive financial positions of the company and forward the same to the management and
the Board of directors to fix future financial strategies for continuing sustainable
business practices of the company with maintenance of profit margin at satisfactory
level for the stakeholders. The role of accountant is named as the role of watch dog. It is
my duty to find and highlight any type of misappropriation in financial practice found in
the operation of the company, so that respective stakeholders can take immediate
action to mitigate risk for this field of operation with proper remedial measures.
(ISIAVWE, nd)
Contribution to addressing climate change
Climate change is the worst curse of prevalent technological development. Due to
enormous usage of fossil fuel, more dependence on chemical support and non-
awareness of recycling energy through usage of non-conventional energy, climate is
getting changed resulting to warmer planet. This change makes the living condition of
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the planet tougher for the living objects. This situation arises due to profit greedy
attitude of the industries. (Science, 2015) The occurrence of forest destruction on
regular basis is causing gradual reduction of oxygen in the air with resultant subsequent
increase of CO2. Along with that happening, non-use of natural products also promotes
increase of different fatal ingredients in the environment. The planet is getting more
polluted day by day and it is really bad to leave behind us a polluted world for the next
generation to live. Agenda 21 of United Nations known as Rio Declaration on
Environment and Development had endorsed the statement of principles to ensure
sustainable global management for preservation of forests and was acknowledged by
178 or more governments of UN at the UN Conference on Environment and
Development (UNCED) organized in Rio de Janeiro in June, 1992. (Nations, 1992)
As per the article -The role of accounting in supporting adaptation to climate change, by
Martina Linnenluecke, Jacqueline Birt and Andrew Griffiths of 2015, the effect of climate
change has been emphasized as per IPCC 2014 report with description of specific role
of accountant in this aspect. This article had highlighted that in spite of warnings from
scientists regarding the graveness of impacts in climate change with specific importance
on the sectors like agriculture, health, forestry, water and tourism, the global corporate
circle had not put any significant adherence to this issue with slow rate of reaction. This
action may be due to insufficient guidance with legislative enforcement and proper
assessment of risk management, corporate governance and requirements of disclosure
followed by formal changes with proper direction. To avert this situation, the responsible
operative corporate for generation of high quantum of green gas has to follow the
regulations fixed by the government related to this field. This approach may be followed
by voluntary initiatives by the social workers to raise awareness of the bad impact of
green gas emission and ways to mitigate this to avoid climate change.
To accomplish the mission of climate change awareness and respective steps by the
corporate, accountants have to play a major and vital role through their analytical
presentation to justify the cost effectiveness of system for mitigation of green gas
emission. This mission of green gas emission minimization needs corporate to ensure
development of risk management with methodologies to find out the risks related to
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climate and wider range of stakeholders for implementation of framework to evaluate
adaptive provisions with disclosure of risks related to climate change. As per the
authors, this article would be the first of its kind to react to these challenges by the
accountants for adaptation of climate changes with specific role of –a) doing
assessment of risks related to climate and capacity of adaption; b) evaluating the cost of
adaptation with its subsequent benefit; and c) initiating disclosure of climate through the
commonly acceptable method. Through proper and logical method of exercises, the
method to invent risk assessment, cost impact of adaption and respective disclosure are
to be ensured by the accountant for confirmation of their contribution in climate change.
(Linnenluecke, Birt, & Griffiths, 2015)
Contribution to sustainability
The terms sustainability means that quality, which can ensure long and uninterrupted
existence of the company. Being an employee it is my responsibility also to ensure
sustainability of the business. To contribute towards sustainability effort to the company
by an employee, one has to ensure that by his work he should add value to the
organization complying with the need of the stakeholders. An accountant can contribute
to the company by adhering to the rules and norms to be followed, as set by the
controlling bodies. Being an accountant, I must follow the guidelines set by the
controlling bodies to ensure prudent presentation based on conceptual framework set
by the controlling bodies. Being a company with public listing in the share market, this
company holds the responsibility of different aspects. Out of them, major factor of
responsibility is keeping close watch on the interests of the stakeholders- both internal
and external to ensure long term sustainability with maintenance of economical
environment, the way it should be. Other prime responsibilities are to ensure
environmental balance through the opted business operations. As an accountant, my
role is to take proper accounting action of regular financial transaction by registering
them in the accounting system to produce different financial reports for the
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stakeholders, which can enable them to understand the same and to take proper
decision to ensure their interests. In other words, my job is to ensure compliance of
economic environment of the organization for the sake of the stakeholders to ensure
long terms sustainability. AASB has identified different measures in different areas of
accounting with prescribed treatment. IFRS provides clear guidance towards the
treatment of different financial information to register them in the financial records for
best possible production of financial reporting. To make the accounting system prudent,
IASB has provided international guidelines regarding different accounting treatment in
order to synchronize global accounting standards on a common platform. This is my
responsibility to maintain the financial records as per the guidelines provided by these
accounting standard boards so that economic environment is maintained for the
company. Internal stakeholders are interested with the financial position of the company
relating to revenue generation with subsequent resultant profit. But, the external
stakeholders in the form of shareholders, creditors, government, society and other
institutions are more interested in the business practice of the organization, which
should adhere to the demand of mankind for better and greener world. It is my job to
ensure that prudence is being restored for the financial reports so that the external
stakeholders can study the same and satisfy them with the correct treatment of the
financial information followed by subsequent presentation through financial reports. My
objective of job is to ensure that economic environment is maintained so that there
would be no confusion about the financial reports of the company as per different
standards set by respective controlling bodies. My effort towards contributing towards
sustainability will confine within the organization by executing proper duties allocated to
me, and thus serving the stakeholders for their satisfaction. (ICAEW, 2004)
Conclusion
The above discussion evolves with the concept of employment in Australia and New
Zealand with the conceptual framework set by Australian Bureau of Statistics. My
preferred employment is accountant as professional. Being an accountant my
profession demands proper maintenance of financial information and present them
through financial reports to serve the needs of the stakeholders. Being an accountant, I
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have certain duties towards to society to mitigate the impact of climate changes and to
ensure long-term sustainability to the organization with its stakeholders. Being an
accountant I forward my recommendation to the Board to minimize the impacts of
climate change by the effort of the company with proper execution of my duties to serve
the organization to ensure sustainability. Awareness towards climate change is major
factor for the mankind, which is to be acknowledged with due importance. This will
follow necessary steps towards sustainability for the organization, because if the planet
is under the constant threat of climate change, living objects will be threatened with the
existence issue. By mitigating those threats with more affection towards natural
resources utilization, the planet will be a greater place to stay for the next generations.
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Bibliography
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