CPAs can help companies identify scenarios that could disrupt their operations, allowing them to strategize and effectively prepare for challenges.
Canada's chartered professional accountants are well positioned to help Canadian businesses and other organizations better understand and adapt to the implications of climate change.
"Companies that choose not to take action are at risk," says Todd Scaletta, director, research, guidance and support at Chartered Professional Accountants of Canada (CPA Canada). According to the National Round Table on the Environment and Economy, the long-term financial impacts of natural catastrophes are projected to cost Canadians $5-billion per year by 2020.
The knowledge and skills professional accountants have can assist organizations looking to adapt to climate change. "Many hold leadership roles within their organization and bring solid financial expertise," says Mr. Scaletta. Specific knowledge areas include audit and assurance, and risk and performance management. "There is no one-size-fits-all solution, so developing effective strategic planning requires specific expertise."
CPAs can help companies identify "what if" scenarios that could disrupt their operations, allowing them to strategize and effectively prepare for challenges. The list of "what ifs" is long and varied, including office closures and employee absences due to storms or flooding; disruptions affecting construction, transportation and supplies; and higher insurance premiums.
These are not future-world scenarios, they are happening now, says Mr. Scaletta. He points to the example of Frontiers North Adventures, a company that offers tours in Northern Canada. After disruptions in rail service due to warming permafrost impacted the company's supply chain, professional accountants ran cost-benefit analyses and identified a solution: partnering with other area businesses to bring in supplies by barge. In another example, accountants are assisting TransLink, metro Vancouver's regional transit authority, to plan service through areas that may experience future flooding as a result of rising sea levels.
"There is no one-size-fits-all solution, so developing effective strategic planning requires specific expertise."
Todd Scaletta is director, research, guidance and support at Chartered Professional Accountants of Canada
Climate change affects some companies and industries more than others. CPA Canada has embarked on a multi-year initiative supported by Natural Resources Canada (NRCan) under the Enhancing Competitiveness in a Changing Climate program. Canada's professional accountants have long been dealing with matters relating to climate change, and this latest effort is an extension of the previous work.
This new initiative provides professional accountants with valuable resources to help support organizations in adapting to emerging issues.
"Climate change issues present both opportunities and risks, and this new initiative offers an additional lens through which value-protecting strategies can be developed with the organizations and clients CPAs serve," says Monica Sood, CPA Canada principal, sustainability, research guidance and support.
She adds that CPA Canada will be building a portfolio of real-world examples, presenting them on its website as case studies for professional accountants and others to better understand and respond to climate change. The goal is both to raise awareness among CPA members and engage non-members in how they might look to Canada's accounting profession for guidance in adapting to climate change and the various challenges it can present.
This content was produced by Randall Anthony Communications, in partnership with The Globe and Mail's advertising department. The Globe's editorial department was not involved in its creation.