When we start 2025 and the shift from voluntary to mandatory reporting of sustainability data kicks in, all accounting professionals will feel the impact.

Per this article, from SEC Climate Reporting to ESG Documentation, to Supply Chain Information Requests, to Scope 3, big and small accounting firms will be taxed with the impact of sustainability demands.

This brings us to a post we did a while back, where we question how well accounting firms are going to be in providing guidance on a topic most have never experienced. 

If you really want to differentiate your accounting firm from the competition, and give good advice to your clients, walk the talk, like this CPA firm – become a certified sustainable business and add street smarts to book smarts.   

This also will allow you to satisfy your client’s Scope 3 requirements.  

You will benefit and your clients will benefit.

If you want to have experience in a topic you are giving advice on, and want to differentiate from your peers, read this on what you want in a sustainability program, watch this master class, and contact us.

Some people say all marketing and promotion is a form of deception.

Knowing consumers want to support environmentally sustainable companies, is it wrong for companies to misrepresent their environmental commitments?

If you ask the Australian Securities and Investments Commission (ASIC) and the Australian Federal Court, the answer is yes – if you greenwash you will be pursued.

Current score – ASIC 1, Greenwashers 0

This article discusses the $11.3 million penalty that Mercer Superannuation (Australia) Limited has agreed to pay for greenwashing.

Simply stated, we all know consumers are demanding your company prove its environmental commitment.

Those consumers will move their business from you to a sustainable company.

You feel the pressure.

Do you do what Mercer did and risk being caught or do you do the right thing and get certified/verified?

If you want to be on the right side of the law, do good for the environment, and also get ahead of your competitors, read this on what you want in a sustainability program, watch this master class, and contact us.

Per Deloitte –

• 83% of M&A buyers would pay a 3% premium to acquire a company with solid environmental, social and governance performance
• 14% of M&A buyers would pay a 6% premium to acquire a company with solid environmental, social and governance performance
• 67% of M&A buyers would seek a 3% discount if your environmental, social and governance performance is weak
• 73% of M&A buyers have killed a purchase due to what they uncovered in their due diligence on environmental, social and governance performance

These numbers will continue to trend stronger for environmental, social and governance performance. 

Remember, it takes time to build a program.  If you plan to sell your company in 2025, you have already lost the opportunity for a premium and you are now just looking at how much you will be shorted, assuming you can even get the deal done.

If you don’t mind being seen as a leader that is helping the environment, and also want to sell your business at a premium, read this on what you want in a sustainability program, watch this master class, and contact us.

This article gives the following 10 reasons why you should steer your small company to lead, not follow, when it comes to sustainability:

• If you are part of a supply chain – As we have said, if you are part of a supply chain, you are part of your client’s Scope 3. You can retain that client and win new clients if you become certified sustainable.
• Government work – Many governments are already using sustainability as a gating item in the selection of vendors. You can win business if you are certified sustainable.
• Efficiency – You cannot become certified under our program without our helping you lower your energy usage and cost.
• Lower cost of money – Debt and equity providers are rewarding certified sustainable companies with lower cost of money on both the debt and equity side.
• Competitive advantage – The #1 thing on the minds of consumers is the environment and they are rewarding certified sustainable companies with their purchases. 7 out of 10 consumers will move their loyalty if they find a certified sustainable alternative.
• Impact investment – a certified sustainable company can become an Impact Company, improving its attractiveness to charity donors and impact investors.
• Hiring and retaining staff – You can hire for less and retain staff longer if you are a certified sustainable company.
• Marketing and PR – Due to what consumers want to hear, your ad spend will be seen, remembered and responded to, materially better if you include being a certified sustainable company.
• Leading the way – Showing that you are a leader, not a follower, differentiates you from the pack, on the #1 issue.
• The best you can be – Being environmentally certified sustainable shows you are at the top of your game and separates you from your peers.

Your choice – you can lead or follow.  But….if you choose to lead, besides doing the right thing, certified sustainable companies are growing up to 20x faster than their non-certified peers.  That’s not a bad side benefit.

If you don’t mind being seen as a leader that is helping the environment, and also want to grow your business, read this on what you want in a sustainability program, watch this master class, and contact us.

As we have stated in the past, and as this article discusses, larger companies need their vendors to be able to prove their environmental sustainability.  This is due to:

• Vendors are part of the client’s Carbon Emission Scope 3

• Any organization that already has a sustainability program (which +97% of large companies do) is mandated by its Scope 3 obligations to use vendors that can prove they are sustainable and have a carbon emissions program

• Any organization that has made a Net Zero claim is required by its Scope 3 obligations to use vendors that can prove they are sustainable and have a carbon emissions program

• Any organization that operates within a government that has carbon emission reporting requirements are required by their Scope 3 reporting obligations to use vendors that can prove they are sustainable and have a carbon emissions program

Many of you have received Scope 3 letters from your clients.  The rest of you, who are selling B2B, will receive a Scope 3 letter.  This is the initial notification from your client that you will need to ‘get on board’ with sustainability and emissions reporting, if you wish to retain their business.

For those of you saying, “We have not heard anything about this.  We don’t think it is real,” now that governments are mandating climate reporting, the process has begun. 

This can be viewed as a curse or as an opportunity.  For those of you who see it as a curse, you will wait until you are forced to comply.  At that point, the cost of becoming certified and the cost of protecting or recovering market share will be high.

For those who see this as an opportunity, you realize your prospects and clients MUST have vendors that can prove their sustainability commitment…..and they are out of time.  They are desperate to find vendors that are certified sustainable.  All you need to do is become certified and market that certification documentation to your prospects and clients. 

If you don’t mind doing something good, are a proactive leader, and also want to take market share, read this on what you want in a sustainability program, watch this master class, and contact us.

Have you often thought it would be great to be able to sell products/services to governments, but not known how to qualify?

Have you ever heard of GPP?

GPP is Green Public Procurement.  This is where governments seek to source products/services with a reduced environmental impact. 

This article talks about the advantages to companies in Ireland, but GPP is global.

This is not a complete list, but here are some countries that have GPP programs in place:

• Australia
• Austria
• Belgium
• Canada
• Chile
• Denmark
• Estonia
• France
• Germany
• Iceland
• Israel
• Italy
• Japan
• Korea
• Latvia
• Lithuania
• Netherlands
• New Zealand
• Norway
• Poland
• Portugal
• Slovak Republic
• Slovenia
• Spain
• Sweden
• Switzerland
• UK
• USA

If you don’t mind doing something good, and also want to move to the front of the procurement line with governments, read this on what you want in a sustainability program, watch this master class, and contact us.

Who do you think should pay for the climate change cleanup that we are facing?

This article talks about a UN report that is recommending the business community pay for the cleanup caused by climate change.

We do not believe this concept will be adopted/supported in its current form in the near-term.

However, we believe components of this recommendation will become the foundation for building a climate tax that ultimately does what this report currently calls for.

In short, it calls for four components:

• Mitigation – Actions to reduce GHG (tied to the 2050 Net Zero Paris Agreement)
• Adaptation – Changes to existing infrastructure to address what has already going to happen
• Remediation – This is where businesses and countries with high GHG pay for the impact of same
• Transformation – Change our focus from economic growth to human rights focus

How does this impact you?

• We know this is coming. In fact, Mitigation and Adaptation are already in play.
• You have the opportunity to be part of this by participating in the Mitigation leg right now.
• By doing so, you show leadership, which influences consumer purchase decisions.
• Further it positions you for when the formal process begins.

If you want to get right with compliance, do good for the environment, and also get ahead of your competitors, read this on what you want in a sustainability program, watch this master class, and contact us.