ACCA COP16 Plan: Guiding Sustainable Supply Chain Practices

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The global supply chain market is worth US$15.85bn (Statista). Picture: Getty Images
As COP16 sets global biodiversity goals, ACCA’s paper guides businesses on supply chain sustainability and nature-related reporting for responsible growth

In a bid to address sustainability-related issues within supply chains, the Association of Chartered Certified Accountants (ACCA) is embracing the principles, challenges and opportunities of nature-related reporting.

With the Convention on Biological Diversity (CBD) COP16 taking place this week, achieving “Peace with Nature" – the theme of the meeting – is very much in focus. 

This includes embedding biodiversity considerations into supply chain practices.

A pertinent topic is understanding how companies can report and manage their environmental impact across all levels of the supply chain.

CBD COP16 is set to play a crucial role in finalising global biodiversity strategies and setting sustainable targets, which include not just direct operations but also supply chain management.

196 countries attended COP16

ACCA's paper, ‘Empowering business: navigating nature-related reporting', aims to engage boards and management on these critical issues, especially when it comes to the impact of supply chain activities on nature.

ACCA's focus on supply chain impact

Founded in 1904, ACCA has more than 500,000 members across the globe and emphasises the importance of aligning business practices, including supply chain operations, with the UN Sustainable Development Goals (SDGs).

SDGs are highly relevant to managing supply chain emissions, waste and resource efficiency, with key goals including:

  • Sustainable Cities and Communities (SDG 11): Promoting sustainable supply chain practices in businesses and communities.
  • Responsible Consumption and Production (SDG 12): Encouraging responsible financial practices and transparent reporting frameworks in supply chain operations.
  • Partnerships for the Goals (SDG 17): Working with partners to implement sustainable supply chains that meet climate goals.
  • Climate Action (SDG 13): Focusing on reducing emissions and resource consumption, helping companies align with net-zero goals.

Jessica Bingham, Regional Policy and Insights Lead for ACCA, highlights: "Nature is the foundation for all life on Earth.

ACCA was the first accountancy body to admit women to membership in 1909

"Our research suggests an overwhelming number of organisations do not effectively assess and communicate their impacts and dependencies on nature within their supply chains.”

Jessica emphasises: “The role of accountants in this domain is pivotal in driving sustainable business practices and ensuring long-term financial health and environmental stewardship.”

Accountants play a crucial role in helping businesses track and report on their supply chain emissions, resource use and biodiversity impacts.

COP16 will revolutionise the future of supply chains

Opportunities for supply chain transformation

The rise of nature-related reporting creates numerous opportunities for accountants and supply chain managers to drive improvements and sustainability in operations.

By adopting comprehensive reporting practices, organisations can better align their supply chains with biodiversity and sustainability targets.

Each stage of the supply chain must contribute positively to environmental goals in the following ways:

  • Strategic planning and sustainability reporting: Aligning supply chain operations with biodiversity and sustainability targets
  • Value creation and risk management: Identifying and mitigating supply chain risks related to biodiversity loss
  • Regulatory compliance: Meeting new biodiversity and environmental regulations
  • Partnership development: Collaborating with suppliers to reduce environmental impacts
  • Decision financing advisory processes: Integrating sustainability into supply chain investment decisions.
Supply chains are responsible for up to 90% of a company's environmental impact.

CBD COP16

CBD COP16 aims to integrate biodiversity considerations into key sectors like food, energy and finance, influencing supply chain strategies.

Prime objectives include:

  • Integrating biodiversity into key sectors: Aligning supply chain operations in food, energy and finance to harmonize conservation with economic growth
  • Implementing biodiversity frameworks: Developing frameworks to track and monitor supply chain impacts, ensuring accountability and transparency

The Corporate Sustainability Reporting Directive (CSRD) and the International Sustainability Standards Board (ISSB) emphasise the need for organisations to take on board COP16 goals and disclose supply chain impacts on nature.

These standards, supported by ACCA, are essential for ensuring compliance and enhancing reporting capabilities within supply chains.

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A supply chain solution

As sustainability reporting gains momentum, supply chains are a critical area for improvement, often contributing heavily to a company’s overall footprint – affecting biodiversity through resource extraction, emissions waste and land use.

The goals of CBD COP16 and ACCA's initiatives underscore the importance of transparent, sustainable supply chain management for achieving biodiversity and sustainability targets globally.

By focusing on areas like responsible sourcing, emissions reduction and minimizing ecological disruption, businesses can align their supply chains with the principles of biodiversity conservation.

These efforts provide a clear path forward for companies to embed sustainability into every stage of their supply chains, from raw material procurement to product disposal, ensuring their value chains contribute positively to environmental goals.


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