Accountants and finance professionals play a central role in helping companies reach their environmental, social, and governance (ESG) goals. A new referral service from CIMA and Datamaran, a market leader in ESG software, looks to leverage artificial intelligence (AI) technology to help companies redesign and improve their internal controls.
To promote best practice in this area, CIMA and Datamaran are collaborating to offer AI-powered ESG software to finance professionals, a news release said, to help companies better navigate sustainability-related risks, opportunities, and impacts.
“The software empowers accountants and finance professionals to build a streamlined business process, with an evidence-based and auditable materiality assessment and matrix,” the release said. CIMA will refer businesses to Datamaran that need assistance identifying their material sustainability issues and determining the impacts, risks, and opportunities needed for robust disclosure and audit preparation.
Smart ESG, through Datamaran, aims to empower companies with evidence-based intelligence and tools to prioritise ESG issues, bring expertise in house, and monitor real-time issues to strengthen governance and inform C-suite decision-making. The tool provides a consistent, auditable approach to monitoring material issues, with raw data traceable to the source — resulting in a smoother audit experience.
Jeremy Osborn, FCMA, CGMA, Ph.D., global head of ESG for AICPA & CIMA, said understanding how to report against new EU standards is an urgent requirement for companies.
“Identification of material sustainability risks, opportunities, and impacts is the starting point of the new sustainability reporting standards in the European Union and amongst jurisdictions around the world which are adopting the IFRS sustainability-related financial disclosure standards,” Osborn said in the release. “Datamaran’s AI-powered ESG platform provides companies with a sprint start in how to do so.”
IESBA publishes annual report
The International Ethics Standards Board for Accountants (IESBA) released its 2023 annual report, a news release said. It provides a comprehensive overview of the board’s projects and insights from IESBA leadership.
Achievements mentioned include the approval and subsequent launches of the exposure draft on International Ethics Standards for Sustainability Assurance (IESSA), as well as the final ethics standards for tax planning and related services.
IESBA Chair Gabriela Figueiredo Dias said it has been a transformative year for the organisation.
“Our efforts in areas such as sustainability reporting and assurance and tax planning are prime examples of how we are addressing the evolving challenges and opportunities to enhance public trust and integrity in corporate reporting and in the work of professional accountants and assurance providers,” Dias said in the release.
IFAC responds to IESSA proposals
The International Federation of Accountants (IFAC) responded to IESBA’s exposure draft on proposed IESSA standards, suggesting areas for improvement to enhance the practicality and to help practitioners implement the requirements, a news release said.
IFAC, in a comment letter, suggested improvements to these three areas, according to the release:
- Reducing complexity and calling for transparency from practitioners with respect to relevant, jurisdiction-specific sustainability assurance oversight and enforcement where they conduct engagements.
- Ensuring barriers to financial statement auditors providing sustainability assurance to the same client are removed.
- Addressing matters of practicality related to value-chain considerations — through revision or removal of proposed requirements.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.