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New Sustainability Accounting Credential Cutting-Edge Opportunity for CPAs
CPAs absolutely should learn and understand all we can about the sustainability concept. It will impact, if it does not already, all the companies and firms we work with or will work with in the near future.
By Yuliya Ostapenko, CPA
Unprecedented change – from the global health pandemic to blockchain technology – is transforming the way we live, work, and impact the world. In particular, more people than ever before aspire to preserve the planet and enhance the economic and social well-being of society to improve our lives and make those improvements more sustainable.
There is no shortage of information about sustainability: it is a concept that encompasses environmental, economic, and equity (or social) components of the global population. Truly, the volume of information can seem overwhelming at times, making it difficult to decide where to start. For CPAs, why would we want to invest our time to learn about all this? After all, we already must contend with an avalanche of regulatory and accounting standards that impact our clients’ operations and our professional responsibilities. We are accountants after all, not sustainability experts, right?
Don’t write it off so fast! We absolutely should learn and understand all we can about the sustainability concept. It will impact, if it does not already, all the companies and firms we work for or with in the near future. It can already be seen in the green investment decisions made by investment management firms on behalf of clients, sustainability reports coming from publicly traded companies, and a growing importance of sustainability labels on consumer products.
Fortunately, there is an excellent source of knowledge available to CPAs: the Sustainability Accounting Standards Board (SASB), which is administered by the Value Reporting Foundation. The SASB already has a number of sustainability disclosure standards related to 77 different industries and several different sustainability frameworks. It also offers a way for professionals to demonstrate that they have acquired a substantial level of knowledge regarding sustainability accounting standards and how they impact the creation, evolution, and maturity of the sustainable value of companies. I am referring to attainment of the fundamentals of sustainability accounting (FSA) credential. This credential currently is issued in the form of a certificate, but it is expected to evolve into a full certification in the future. There are two certificate levels: one demonstrates attained knowledge in the principals of sustainability accounting (level I) and the other emphasizes application to enhance enterprise value (level II).
CPAs who primarily serve nonprofit and governmental clients might be questioning what the benefits are in attaining this certification because these types of organizations do not operate with a profit mindset. As a result, they may be less interested in enhancing their enterprise value. Let me assure you, you are already talking to clients about sustainability, you just might not think about it in these terms. The sustainability concept, once you get to know it and understand it, is all encompassing. Whether you talk to your clients about enhancing a benefits package for employees or reevaluating an investment portfolio to emphasize vehicles that positively reflect the reputation of the organization, you are talking about sustainability. Whether you are talking about diversifying funding streams or customizing a suite of services that your nonprofit or governmental client are offering, you are talking about sustainability.
Unbeknownst to many, the concept of sustainability has already become an intricate part of our professional lives. It is time to embrace it and build on our knowledge and understanding. The benefits will be measured by the elevated level of informed conversations we will be having with our clients in the near future. We can help them identify opportunities to develop or redesign their mission, vision, and strategic framework to ensure their longevity. For my fellow CPAs who enjoy leading the profession and being on the cutting edge of change, the FSA certificate is a great way to enhance professional value with benefits that will reach far beyond their client portfolio and into the global effort to support all of our futures sustainably.
Yuliya Ostapenko, CPA, is director of assurance specializing in the nonprofit sector for CLA Philadelphia. She can be reached at yuliya.ostapenko@claconnect.com.
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