AICPA EDGE Young CPA Conference Sustainability session

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<ul><li> 1. Evolution of Corporate Sustainability Practices: Emerging Opportunities for CPAs<br />AICPA E.D.G.E Conference<br />Ritz-Carlton, New Orleans<br />August 10-12, 2011<br />Kenneth W. Witt, CPA<br />Technical Manager, AICPA<br />kwitt@aicpa.org<br /></li></ul> <p> 2. Speaker Bio<br /> 3. Agenda<br /> 4. Sustainability Acronym Decoder<br /> 5. Philanthropy<br />Community Involvement<br />Health<br />Education<br />Employee Relations<br />Ethics/Governance<br />Human Rights<br />Social Responsibility<br /> 6. Environmental Responsibility What are the Impacts?<br />Environmental Lenses<br /> 7. Where are Impacts Found? <br /> 8. Levi Strauss Life Cycle of a Jean<br />Recycling<br />6<br />1<br />7<br /> Cotton Production<br />End of Life<br />Consumer Use<br />Fabric Production<br />2<br />5<br />Transport &amp;<br />Distribution<br />Garment Manufacture<br />4<br />3<br /> 9. Sustainability for Business Value<br />$160 Million <br />Total Cumulative Results 2008-2009<br /> 10. Sustainability for Competitive Advantage<br />MacBook Air and the environment<br />Apple greener than its competitors, at least where it counts.Sincerely Sustainable <br /> 11. Green Exchange<br />Nike<br />Best Buy<br />Creative Commons<br />IDEO<br />Mountain Equipment Coop<br />Outdoor Industry Association<br />Salesforce.com<br />2Degrees<br />Yahoo<br />Innovation and Open Collaboration<br /> 12. BIG Four Sustainability<br /> 13. Prince of Wales Accounting for Sustainability Project -A4S<br />Primary Objectives <br />Connected Reporting<br />Embedding Sustainability <br />AICPA a founding member of Accounting Bodies Network<br /> 14. The CPA Role in Sustainability<br /> 15. Sustainability Competency Domains<br />BIG<br />Public<br />Practice<br /> 16. Finance Function Involvement in Sustainability Survey Results<br />AICPA Results<br />Analysis 44%<br />KPI Tracking 21%<br />External Reporting -12 % <br />Sample<br />22,943 C-Suite<br />Response<br />651 SME<br />184 Large(&gt;1000 employees)<br /> 17. 18. 19. If sustainability reporting is to be credible as it necessarily must be when reports contain information that qualifies as material to financial performance the process must be disciplined, comprehensive and, above all, accurate. <br />Steve Leffin, UPS<br /> 20. 21. Voluntary GHG Reporting<br /> 22. 23. De-facto standard for sustainability reporting <br />79 ES&amp;G indicators, plus content and quality principles<br />Stakeholder engagement and education tool<br />Key content source for integrated reporting<br /> 24. International Integrated Reporting Committee Mission Statement<br />To create a globally accepted integrated reporting framework which brings together financial, environmental, social and governance informationin a clear, concise, consistent and comparable format. <br /> 25. Why do we need Integrated Reporting? <br /> 26. Focusing on the <br />top slice <br />Top- level structure for reporting pyramid<br />Greater linkage between existing reporting silos<br />Sustainability / ESG<br />MD&amp;A<br />Financial Reporting<br />Management<br />Commentary<br />Adapted from IIRC<br /> 27. Principles of Integrated Reporting<br /> 28. Whats<br /> Missing?<br />Making the connection<br /> 29. Connected Reporting Example - Greenhouse Gases<br />Non-Financial Indicators<br />Financial Performance<br />KPI<br /> 30. 2011<br />2012<br />2013<br />Corporate Pilot Program<br />Investor Pilot Program<br />Ongoing Stakeholder Engagement <br />Standard Setters, Regulators, Others<br /> 31. 32. AICPA - SOP 03-02 Attest Engagements on GHG Emissions Information <br />Guidance for practitioners on:<br />GHG emissions inventory or baseline<br />GHG emissions reduction <br />Exam level engagements Reasonable Assurance <br />Review engagements Limited Assurancenot covered by SOP 03-2 <br /> 33. GHG Assurance Issues/Risks<br />Specialized skills, knowledge, expertise<br />Scope, materiality, consistency<br />Boundary issues ownership, control<br />Baseline measurement / Reduction additionality <br />Uncertainty in measurement<br />Inherent uncertainty<br />Control risk <br /> 34. ISAE 3410 ED Assurance Engagements on Greenhouse Gas Statements Key Issues<br />Use of ISAEs by other than professional accountants<br />Compliance with IESBA Ethics Standards, or other equivalent<br />AICPA Comments Specific cite + affirmative statement<br />Limited assurance engagements and report<br />Varying levels of limited assurance, based on procedures performed <br />AICPA Comments Summary of procedures may infer greater level of assurance than reasonable assurance opinion<br />Inclusion of recommendations in practitioners assurance report <br />Accepted practice in international community AA 1000<br />AICPA Comments confuses substance of practitioner conclusion<br /> 35. To the best of our knowledge, we have found that Southwest has satisfactorily applied the GRI sustainability<br />reporting framework<br /> 36. Third-party assurance and the value it brings to ones credibility is not a nice to have it is necessary. Steve Leffin<br /> 37. 38. Thank You<br />Additional Resources<br />www.aicpa.org/sustainability<br /></p>

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