BKL contributed a case study to Why Nature Matters to Accountants: A guide to building resilience and value through nature-positive action.
Published by the Global Accounting Alliance, the guide provides accountants working in business and practice with the necessary foundational knowledge and practical actions to begin integrating nature into their work and to engage other stakeholders where needed.
Read Why Nature Matters to Accountants here
Our case study: Incorporating distant risks into present planning
We shared our experience of advising property developers & investors on sustainability.
‘BKL is a UK-based accountancy practice offering a full range of accountancy, advisory and tax support, including specialist audit and assurance services. It became a certified B Corp company in 2022, reflecting its ongoing commitment to being a force for positive change across every aspect of the business and value chain.
With corporate transparency on sustainability performance in the spotlight, the firm is seeing growing demand for its sustainability assurance, audit and verification services. One of the largest sectors in the firm’s client base is property and construction, a sector in which sustainability is an increasingly important consideration. BKL’s Head of Sustainability & ESG [Myfanwy Neville], a chartered accountant, leads the firm’s sustainability practice, advising property companies developing and investing in property.
Experience has shown that client conversations tend to start around the most material nature-related issues, water being particularly important in the construction sector. Risks related to dependence on water usage and scarcity tend to be better understood, as it’s relatively straightforward to translate this to higher operational costs and future risks associated with taxation, regulation and planning. Focussing on water can then open dialogue on wider issues, such as impacts on species and ecosystems.
Data also remains a key issue for assurance engagements. While there is no shortage of data being collected by companies, accountants need the right data collected and for this to be assurable. How this data is collected, the systems used, and the quality of that data are critical considerations. The limitations of the data collected must be fully understood by the assurance practitioner, and the report provided must be extremely clear as to the work done, limitations encountered and the implication of this to the report user.
From the assurance practitioner’s point of view, it is also not only about having the knowledge and experience to have these conversations with clients, but also to engage with the firm’s own board and wider teams to ensure distant client risks are identified and incorporated into present planning. As sustainability continues to rise up the agenda in the sector, and as knowledge and capacity builds, the firm expects assurance engagements to become an increasingly important part of the business.’
How we can help
Thank you to the ICAEW for the opportunity to contribute to Why Nature Matters to Accountants. Myfanwy Neville, as a member of the ICAEW Sustainability Committee and the DFK International ESG & Sustainability Committee, is helping to reshape how accountancy firms approach sustainability.
As a B Corp with growing expertise in sustainable business practices, we combine deep financial knowledge with practical sustainability experience to help businesses succeed. Read more about our sustainability services or get in touch for a chat about how we can help you.
[Image credit: Global Accounting Alliance]
