The new report from ICMIF partner organisation Accounting for Sustainability (A4S), Accelerating the Transition: Assessing Progress and Driving Action, sets out economy-wide practical actions that it believes would accelerate the global transition to ensure a just, climate-resilient, net-zero world. The report outlines the current state of sustainability efforts, identifies barriers to progress, and proposes practical action for businesses, investors, regulators and governments.

A4S was established by HM King Charles III twenty years ago, when he was The Prince of Wales, with the goal “to help ensure that we are not battling to meet 21st century challenges with, at best, 20th century decision making and reporting systems.” The report was launched as the organisation celebrated its twenty year anniversary of leading sustainable business practices.

Jessica Fries, Executive Chair at A4S said, “While we have achieved a lot in this time, and with real progress being made across the global economy, there is a limited window of time remaining if we are to keep global warming within safe limits.”

Fries continued, “We all have a role to play, working together to increase the allocation of finance to sustainable outcomes and adopt solutions at scale. As our work highlights, this can deliver significant growth opportunities for business and the economy and is essential to reduce the significant risks faced from dangerous climate change. This report sets out practical actions for organizations – no matter where they are in the economy – to leverage their influence, drive impactful change and expedite the transition to a sustainable economy”.

The report was co-authored by one of ICMIF’s Supporting Members, Aviva Investors, and informed by insights from global leaders in business, finance, regulation, academia and the public sector, and calls for immediate, coordinated and ambitious actions across the economy to:

• Drive a significant increase in ambition and set robust interim 2030 targets.
• Close the implementation gap through economy wide, systematic use of transition plans.
• Remove friction across the international financial system, through enabling regulatory and legal frameworks to incentivize and de-risk climate financial flows.
• Back the ‘big bets’ with an industry-wide collaboration on systems-level sustainability solutions.

Speaking at the launch Steve Waygood, Chief Sustainable Finance Officer, Aviva Investors said, “As an active asset manager, stewardship is an incredibly powerful tool to guide our portfolios through the energy transition. It generates an information advantage, helping us and the companies we invest in seize upon opportunities and maximise financial performance. Working in partnership, investors, companies, and governments can identify more sustainable investment opportunities and shape a supportive policy environment. Taking a systemic approach is critical for all investors looking to maximise long term risk-adjusted returns within a more sustainable economic growth pathway.”

Liam Carter, Senior Vice President, Sustainability at ICMIF said: “I am thrilled to see the A4S report outlining practical steps for an economy-wide acceleration towards a net-zero transition. This report not only reflects the mutual and cooperative sector’s commitment to sustainable practices but also serves as a beacon, guiding us towards a greener and more resilient future. It is a testament to the power of collective action and the significant strides we can make when we prioritise the health of our planet.”

Nigel Topping, a member of the UK Climate Change Committee and a member of the advisory group for the report commented: “This report demonstrates the importance of moving beyond a focus on disclosure and engagement as tools of change. It sets out a systemic approach to driving the levels of capital needed to tackle the twin crises of climate change and biodiversity loss, in particular ensuring that capital flows to emerging markets and to new asset classes such as nature based solutions and regenerative agriculture. Governments and capital providers alike must develop transition plans to drive the systemic changes needed.”

The report can be downloaded here.