The report investigates the concept of materiality, how it is used to identify issues for management and disclosure and the extent to which it currently reflects the significance of natural capital as a business issue. In order to gather the views and opinions of accountants on natural capital, ACCA conducted a survey of its membership. The key findings of this survey are presented in this paper.
This paper is the first in a series of articles that expand upon the research conducted for the ACCA/KPMG/FFI project.
Summary
The accountants surveyed were aware of the links between corporate value and natural capital, and that current trends in natural capital present a variety of different risks to businesses that are likely to increase over time.
This awareness however, has not flowed into widespread corporate action. This was best demonstrated by the fact that the majority of accountants surveyed, work for organisations that do not report on natural capital. The key barriers to greater uptake of reporting include a lack of guidance, valuation methodologies and understanding. This last point has also been reflected in the survey, as three quarters of respondents felt that they need training and guidance to better manage the risks and opportunities associated with natural capital.
In order to address this demand, ACCA is continuing its research into the topic of natural capital and will be producing a number of reports and papers over the coming months. ACCA will also be collaborating with expert groups, such as the Natural Capital Declaration, and will be contributing to wider initiatives that are seeking to produce guidance on how to account for natural capital.
Find the complete report in the pdf attached document
