Sustainability Management Accounting
Our field of expertise is "Sustainability Management Accounting" and we help companies understand the impact of non-financial data on financial information.
We incorporate economic, environmental, and social components to support internal decision-making.
We set up the process of identifying, measuring, reporting, and analysing financial and sustainability-related information.
Connect Sustainability and Accounting
Strategy
Sustainability Management Accounting support the internal decision making by providing structured data driven information about the companies’ financial and long-run competitive performance.
Operations
Sustainability Management Accounting is a management approach that measures, reports and analyses financial and sustainability-related information together. A process oriented view on operations helps to provide valuable feedback information about the efficiency and quality of tasks performed in each process.
Costs
Sustainability Accounting seek to improve the identification and measurement of sustainability costs related to product or service. In order to better understand and manage sustainability related costs, accounting tools such as Activity Based Costing and Life Cycle Assessment can be used to break down the overall costs.
Management
The design of a Sustainability Management Accounting system should also consider incentives and provide information about the performance of managers and operating units.
Impact of non-financial data on financials
Sustainability is an asset, not a liability
Sustainability is many times mistakenly treated as marketing strategy focusing on external communication or as compliance exercise evaluating the risks. Understanding the full picture of how sustainability information impact the result of a company, will give early movers advantages. Financial directors and the accounting teams play an important role in providing insights in Sustainability Accounting and translating Sustainability information to financial terms.
Enabling Management Team through SMA
As Sustainability becomes increasingly important part of a company's overall business strategy, we help the Management Team with answers to some of the critical questions on the topic and make sense of ESG data.
Baseline
Financial Outcome
Build Scenarios
- What is the current performance of each selected ESG metric?
- What does this mean in financial terms?
Build Scenarios
Financial Outcome
Build Scenarios
- Internal information changes? (budget vs real or update of forecast)
- External ESG factor change and business as usual? (risk assessment)
- External ESG factor change and internal EGS factor improves? (opportunity study)
Financial Outcome
Financial Outcome
Financial Outcome
- How will the identified scenarios impact our financials?
- How will the selected ESG targets impact our financials
- What is the cost of inaction?
Set Targets
Generate Reports
Financial Outcome
- What target is realistic to set considering identified scenarios?
- Are we inline with our ESG targets?
Monitor
Generate Reports
Generate Reports
- What KPIs do we need to monitor on a periodic basis?
- What additional KPIs should be included after completion of one cycle of the loop?.
Generate Reports
Generate Reports
Generate Reports
- What reports do the management need?
- What information do stakeholders need?
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