Implementing Green Budgeting in the public sector is essential to tackling climate change

ACCA (the Association of Chartered Certified Accountants) backs green budgeting for the public sector everywhere to implement climate commitments and achieve their environmental goals.

In Green budgeting: a toolkit for public sector finance professionals published today, ACCA sets out the reasons for considering green budgeting and the methods that can be adopted. It highlights the crucial role that finance professionals must play in making action on climate change a reality.

John Lelliott, OBE, FCCA, chair of ACCA’s Global Forum for Sustainability and former finance director at the UK Crown Estate, wrote a foreword to the toolkit. He says; “action to address the climate crisis requires change across the entire public sector. Climate considerations must be central to public sector organisations’ decision-making processes. The budget cycle is at the heart of the way organisations implement their objectives”.

Green budgeting supports progress towards national and international climate commitments and goals; promotes environmentally responsive policy making; fosters transparency and helps investors as they look to fund sustainable activities through financial instruments such as green bonds. 

Toolkit sets out key methods that financial professionals can use to turn green ambitions into costed plans. The toolkit identifies three important conditions to support successful implementation: political will; building on existing processes; and adopting green budgeting across the whole public sector – half of all public spending on climate and the environment is at sub-national level.

The report also sets out five key steps to adopting green budgeting: develop a baseline; prioritize spending with the most impact; categorize and monitor spending; ensure external review and then learn and improve.

The toolkit highlights how finance professionals are at the heart of green budgeting and can enable public sector organisations to turn goals and ambitions into costed plans.

Assad Hameed Khan, head of ACCA Pakistan, says; “climate change, as experienced through the recent floods, is already having a profound impact on Pakistan. Government is at the forefront of the response to climate change including the need to integrate and mainstream climate action in every public sector organisation. Accountancy and finance professionals in the public sector will be essential to this task. It’s a great opportunity for public sector accountants to step forward and make a real difference”.

Read the toolkit here.

About ACCA: ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We’re a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values. We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies. Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report. We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities. And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com

Pakistan’s Ayla Majid elected vice president of ACCA

Joseph Owolabi was confirmed in his new role at the annual council meeting after ACCA’s Annual General Meeting (AGM) on 10 November 2022. Ronnie Patton, formerly senior lecturer at Ulster University, Northern Ireland, was appointed deputy president and Ayla Majid from Pakistan, founder and CEO of Planetive – a clean energy and sustainability advisory practice – became vice president.

Ayla Majid joined ACCA in 2006 and has been serving on ACCA’s since 2014. She is the first person from Pakistan and South Asia to be elected the global vice president in a 118-year history of ACCA. 

Ayla is an international speaker and is a strong advocate of sustainability and energy transition; takes part in contributing to important themes: Digital Transformation, Climate Finance, Future of Work, Future of Energy and Sustainable Infrastructure. She sits on the Boards of various public and private entities in Pakistan in the areas of energy, pharmaceutical and not for profit sectors. In her various roles she focuses and advises on the adoption of the SDGs across different industries. Ayla is Eisenhower Fellow, and is a Young Global Leader of the World Economic Forum. She sits on the Global Future Council of Energy Transition of the World Economic Forum.

Ayla Majid shared her views by saying; “being a finance professional has equipped me with the tools and connected me with people who are working towards creating action-oriented solutions for a sustainable world”.

For Ayla promoting the role of women in governance is something she is very passionate about and she said; “it is the need of today’s forward-looking organization”. Ayla is a champion of board diversity and actively engages in promoting women on boards. She was the first female to sit on the board of any stock exchange in Pakistan. Thanks to pioneers like her, the influence and impact of women is changing the face of Pakistan”.

Ayla is also proud that ACCA plays a major role in offering young Pakistanis a promising career path full of growth and opportunities while creating a positive global impact, she said; “ACCA is a wonderful qualification, with high quality standards, up to speed with addressing global needs and provides flexibility, and therefore fits really well with the requirements of a diverse audience. It’s particularly a very attractive career choice for women in all parts of the world including developing countries”.

The newly elected ACCA president, Joseph Owolabi, grew up and studied in Nigeria, has lived and worked in Africa, North America and the UK, and now is an adoptive Australian. He will bring his knowledge of being a global citizen to his time as ACCA president and will draw on his experience of finding a home and a family with ACCA wherever he has lived and worked.

He became an ACCA member in 2011 and has served on ACCA’s International Assembly 2014-2015 and has been an ACCA Council member since 2015.

Joseph said; “If you had told me as a child growing up that I would one day be the first African leading the largest, truly global accounting body, I would not have believed you. ACCA is an inclusive open and global community for members, future members and partners. Wherever in the world I have found myself, ACCA has given me a home and a family”.

He added; “I am passionate about connecting our community and inspiring the accountants of tomorrow. Great things happen when we collaborate across jurisdictions and national divides”.

He further added; “the challenges of today and the complexities of tomorrow will demand continuous learning, courage, sound judgment and a resolve to stay ahead of the curve. The accountancy profession has a key role to play in creating a better world”.

Joseph brings a wealth of experience to the role. He is founder of Rubicola which works in Australia, Africa and North America advising clients on risk, non-financial reporting and sustainable business strategies. His previous experience includes roles at Deloitte, EY and PwC.