WHAT IS CORPORATE SUSTAINABILITY?

Charles E. “Eddie” Brown, CPAPresident, SC Association of CPAs

What We Are Covering Today• What is corporate sustainability?– And, what it isn’t– Why is it important?

• What is your Association doing?– Sustainability Task Force– 1,000 Points of Green Program– SCACPA Green Team and Green Meetings Initiatives

• Video perspective from fellow AICPA members

Corporate Sustainability is Not . . .

• Lip service

Corporate Sustainability is Not . . .

• Neo-classical economics

Corporate Sustainability is Not . . .

• Green-washing

Corporate Sustainability is Not . . .

• Compliance

Corporate Sustainability Is . . .

• Integration of Human Value and Institution

Corporate Sustainability Is . . .

• Creating Intergenerational Equity

Corporate Sustainability Is . . .

Corporate Sustainability Is . . .

Corporate Sustainability Is . . .

Putting It All Together . . .

SUSTAINABILITY & YOUR PROFESSIONAL ASSOCIATION

Rich Waycaster, CPAChair, SCACPA Sustainability Task Force

Drinking the Green Kool-Aid

• Personal interest• MFG Meeting – Jan 2010• Research• Professional interest• SCACPA Task Force• Business case

Business Case / Strategic advantage

• Decrease cost, improve efficiency– Energy, water, waste– Operational efficiencies

• Increase revenues– New Products, new markets, higher margin

products• Build Value– Improve brand, goodwill– Doing well by doing good

Why it is important to SC (CPA’s)

• Global economy / global perspective• Decreasing resources / increasing population• Increased regulatory environment• Expanded stakeholder expectations• The “Walmart factor”• Investment – follow the $$$• Strategic / competitive advantage

….generation, analysis and use of monetized environmental and socially related information in order to improve corporate environmental, social and economic performance….

What is Sustainable Accounting

GAAP was created to give certainty to financial health of U.S. Corporations (1933)

Companies and Accounting Industry are trying to work ahead of the legislative curve to ensure future assurance standards without burdening business

Shift in general business paradigm Published Business Sustainability Indexes Stakeholder and Governance Growth Merging of GAAP and IFRS (XBRL) Multi-stakeholder Initiative to Integrated Reporting Management Value

What is driving Sustainability adoption in/by Accounting?

• Extend Financial Accounting into an Integrated Financial reporting• Tax Analysis, recommendations and reporting• Voluntary Target Reporting • Bench-marking and Performance Analysis• Tradable permit analysis, recommendation and reporting• Assessments and Audits pertaining to defined practices• Compliance support in certification processes • Risk management assessment re: liability (EPR)• Supply chain audits and reporting (2nd/3rd tier)• Regulatory compliance reporting • Stakeholder assessment and reporting• Corporate Governance Reporting• Assurance

CPA Service Opportunities

Process and Label Certification

400+ Labels world-wide and growing

Introducing the SCACPA Sustainability Task Force

• The task force has eight members (and more are welcome!)

• Representation from public and private sector • Divided its projects into three primary areas: – Technical Standards and Advocacy– 1,000 Points of Green Program– Awareness and Promotions

Technical Standards and Advocacy

• Research and report developments in other service industries, as well as state and national CPA organizations

• Monitor and catalog: reporting guidance and standards; assurance guidance and standards; regulatory/legislative alerts and tax credits /opportunities.

• Become a resource for information regarding: certification, measurement and verification, including industry specific topics.

• Identify South Carolina CPA service offerings: consulting, assurance, tax and niche.

1,000 Points of Green Program

• Research and endorse a green program for small business.

• Guide SCACPA’s internal green initiative.

• Provide tools, checklists and implementation strategies for members.

• Monitor and report impact of “green” initiatives on South Carolina’s economy.

• Develop Recognition Tactics: “Green Business of the Year” or “Green CPA Firm of the Year.”

Awareness and Promotions

• Develop and maintain Web-based content, including resources, links and hot issues www.scacpa.org/sustainability

• Design material for educational awareness.

• Promote 1,000 Points of Green Program.

• Promote/schedule CPE for SCACPA members (Professional Issues Update Series and CPA Summit & Tax Conference, plus others to be announced).

• Promote university and other resource programs available to members.

• CPA Report • Third Edition 2010

EXPERIENCE FROM THE FIELD

•CFO Perspective•CPA Firm Perspective

CFO PERSPECTIVE

Patricia Cochran, CPAVSP Vision Care

SMALL/NICHE FIRM PERSPECTIVE

Michael C. Knowles, CPAFrank Rimerman & Co. LLP

SCACPA’S INTERNAL GREEN INITIATIVE

Erin Hardwick, CAESCACPA Executive Director

SCACPA Internal “Green Team”

• Internal and voluntary. Ages 25-65.• Three primary goals:

1. Immerse ourselves in resources for small businesses and green meetings

2. Become a certified green business and 3. Make plans for implementing international green

meetings standards and additional benchmarks we are able to work toward.

Lexington County Certified Green Business

• The four-part certification process involves a focus on preserving South Carolina’s natural resources, via :– waste reduction and recycling – energy efficiency – water conservation– enhancing air quality

We’re Already Seeing Green

• Offering electronic materials for a discounted registration fee

• Eliminating bottled water • Providing recycling stations • Reducing printed marketing materials,

registration forms and signage for events.• Signed staff pledge

Energy Pledge• Making sure lights and electronics

are turned off when not in use.• When leaving office/area for

more than 15 minutes, I will turn off lights.

• Using task lighting where extra light is needed, rather than over-lighting an area

• Unplugging equipment that drains energy when not in use (i.e. cell phone chargers, fans, desktop printers, radios, etc.).

• Turning off monitor at the end of the workday.

• Adjusting the settings on monitor so that it automatically goes into standby mode when it is inactive for 30 minutes.

• Closing window blinds to block direct sunlight to reduce cooling needs during warm months.

• Opening blinds during the day in winter months to allow sunlight to naturally heat workspace. At night, close blinds to reduce heat loss.

• Take public transportation, bike, or walk to the office. Carpool to the office or events.

Paper/Printing Pledge

• Think twice before printing.• Reduce the amount of paper

to print by reading, highlighting and commenting on documents on my computer whenever possible.

• Use the color printer only when absolutely necessary.

• Make double-sided printing and copies standard practice.

• Save previously used paper for use as scratch paper or drafts.

Recycling/Reuse Pledge• Recycle paper, cardboard, plastic, glass and aluminum

products.• Reuse office supplies and checking office inventory before

making new purchases.• Use local businesses for catering, products and services

whenever possible.• Reduce bottled water consumption by purchasing a BPA-

free water bottle and filling it with purified water from the refrigerator/cooler.

• Use less paper, plastic and Styrofoam products whenever possible or supplying my own plate, silverware, mug and cloth napkin to use for meals and snacks.

Get More. Get Involved.

• Join fellow members in tackling this new frontier for the profession in South Carolina!

• Additional information: www.scacpa.org/sustainability