International accounting body releases online sustainability self-assessment tool
The International Federation of Accountants (IFAC) has released an online tool to help small- and medium-sized enterprises benchmark and track their sustainability efforts.
As global sustainability regulations shift and evolve, businesses are under new constraints to understand and document their climate risks and opportunities.
In collaboration with the Edinburgh Group, IFAC has released an interactive tool to help SMEs incorporate sustainability into their business operations.
“This checklist is a practical tool to help small businesses benchmark and track their sustainability efforts, providing the resources and guidance to help them take the first step or make progress from what they’re currently doing,” Lee White, chief executive at IFAC, said.
In Australia, mandatory climate disclosure rules will require large businesses to account for Scope 3 emissions produced within their value chains from 1 July 2025. This would include emissions from small suppliers that they engage with, both upstream and downstream in their supply chains.
Ahead of these changes, ASIC reminded small businesses that they may have to provide emissions-related information to any large businesses they engage with in their supply chains.
Resources such as the IFAC’s sustainability self-assessment tool could help SMEs cultivate a strong sustainability strategy and be better equipped to provide information to large businesses in their supply chains that have climate reporting obligations.
The self-assessment checklist scores users’ sustainability performance across environmental, social responsibility and governance metrics. IFAC said that the tool would allow SMEs to identify climate-related risks and opportunities and generate a roadmap for improvement.
The tool included videos and insights into how other SMEs had tackled their own sustainability challenges. It also shared practical strategies and best practices emerging from within industry.
IFAC said that the guide could help accountants translate sustainability concepts into actionable steps for clients and their own firms.
As global sustainability frameworks continue to evolve, having a clear sustainability strategy could future-proof SMEs against climate transition risks, IFAC suggested.
Accounting professionals have said that sustainability tools such as the IFAC checklist would spark essential conversations between accountants and their clients regarding sustainability matters.
“IFAC’s new tool is more than just a guide to reporting, it’s a resource that fosters best-in-class sustainability practices and helps firms develop advisory services,” Ignition’s Sarah Lawrance said.
“As accountants and small businesses, we have a responsibility to consider our impact on the future, and this tool helps us all take meaningful action, no matter where we are on our journey.”
