The Institute of Chartered Accountants in England and Wales (ICAEW) has urged its members to contribute to new guidance for sustainable economic practices.
The guidance aims to transform organisational decision-making by ensuring natural, human and social capital are considered.
ICAEW chief executive Alan Vallance emphasised the role that chartered accountants play in supporting organisations to understand how these capitals underpin performance and well-being.
In June, Vallance joined the Capitals Coalition, which is associated with more than 450 organisations globally.
The coalition has developed a practical tool to assist organisations in adopting ‘capital thinking’.
This approach is said to be crucial for achieving a fairer, more sustainable world as it requires the value of all four capitals to be considered in decision-making processes.
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By GlobalDataThe coalition’s Framework for Integrated Decision-making introduces a seven-step process to ensure all four capitals and their interdependencies are considered.
The aim is to provide organisations with a consistent and transparent method for incorporating capitals thinking.
The framework details subtasks and expected outputs for each step.
Supporting the framework are two technical documents.
The Capitals Protocol offers detailed guidance for conducting an integrated capitals assessment, with dedicated sections for each of the seven steps.
Meanwhile, Governance for Valuation provides a common structure for building confidence in valuation, outlining transparency requirements and communication guidance.
After a year of development, the coalition has released the beta version of the framework and its supporting documents.
The beta framework states that: “We know this is not easy, and we know the Beta Framework is not perfect. We need your help. Only a collaborative effort from all of us will transform the way that we account for and value what matters.”
It is now calling for organisations to engage with the tool by trying, testing, discussing and providing feedback.
Last month, the University of Economics Ho Chi Minh City (UEH) College of Business, in partnership with the ICAEW, launched a new training film entitled Without Question.
The film, the second in a series produced by the ICAEW, aims to facilitate discussions on professional ethics and decision-making in business.
The training session, co-hosted by both institutions, was attended by UEH College of Business School of Accounting vice-head Nguyen Phuoc Bao An, and several faculty members.
