ICAEW: SMES SHOULD EVALUATE THEIR READINESS TOWARDS CLIMATE RISK EFFECTS

KUALA LUMPUR, Oct 25  -- Malaysian companies, including small and medium enterprises (SMEs), should evaluate their current skills and expertise composition to fully explore the effect of climate risk to the organisation with regards to strategy, operation and reputation.

 The Institute of Chartered Accountants in England and Wales (ICAEW) said SMEs, which made up the economic backbone of Malaysia, needed to start thinking differently or risk being left behind.

“While the conversation at present is very much about missions and net-zero, the next stage will be about climate balancing and the stage after that may be about positive contribution and improvement,” it said in a statement.

bootstrap slideshow

The global professional body for chartered accountants said finance teams are also essential in helping to drive progress by transforming the way businesses view and interact with their environment.

It said finance teams needed a clear vision of the short, medium and long-term impacts of climate change to create a business case for change.

Furthermore, it said with COVID-19 necessitating climate change on an organisational, national and global level, businesses needed to think more about the broader issues facing the world now.

“To safeguard the future of businesses and economies, health, sustainability and environmental policies must be viewed as not merely related topics but highly interdependent factors.

“Even though there are currently no mandatory global reporting standards for climate risk, progressive businesses are taking positive climate action before regulation makes it mandatory,” it said.

Head for Malaysia Loh Wei Yuen said to support this important agenda, the ICAEW Sustainability and Climate Change Community allowed anyone to access its resources which enabled all companies to be more resilient and keep these issues at the heart of all business.

-- BERNAMA