Can accountants save the planet?

The heroes in pinstripe.

One striking thing that happened at the 2012 UN Earth Summit in Rio was hearing that it was the accountants that will save the planet. It also resonated in one of the most important themes I heard at Rio: valuation, measurement and disclosure. This speaks to the huge role accountants have to play in the creation of a more sustainable world - and it was great to see the profession at Rio in the form of IIRC, the Prince of Wales’ Accounting for Sustainability Project and ICAEW.

This theme was one of a number of that buzzed at the summit and side events including: natural capital; the discussions around articulating a set of sustainable development goals (SDGs); and the much more prominent role business had this time (so different from 1992). There also seemed to be a tacit question floating around about what the role of governments is; for this was not the world uniting in common cause for a higher purpose, this was c.190 separate nations gathering with very different agendas and interests.

These governments are struggling to address global issues that require them to aspire to an international public interest and yield a certain amount of sovereignty. It requires not compromise, a descent to the lowest common denominator, which is what we got, but consensus. This involves giving up some national interest for a greater good. Are the institutions of government and international governance capable of delivering that? The public doesn’t think so. We are witnessing a collapse in public trust in such institutions.  Just look at the latest Edelman Trust report where the most trusted of our institutions commands only 50 per cent of public trust. Respected commentators such as Naill Fergusson and Diane Coyle have written and spoken convincingly on the need for institutions that are fit for purpose.

But the success of any sustainable programme is predicated on successful measurement, valuation and disclosure. If we cannot measure the impact organisations are having on the natural environment then we certainly won’t be able to do anything about it. We need to value that impact not to put a price on nature in order to put it up for sale, but to show its value to stop it being economically invisible. This is the language of business and to engage business we need to speak its language. Reporting is important not just as disclosure to stakeholders and shareholders but, more importantly, in as management information to enable managers to make informed decisions. These are the functions that I would argue are the domain of accountants.

The management and public accounts create an image of the business that shapes perception and decision-making. Like any representation, these are not an unimpeded view; they include certain information and leave other things out, presenting a certain reality. So including other information, about environmental impact for example, will drive different understanding and a new reality and other decisions. That’s why accountants are important.

Richard Spencer is the Head of Sustainability for ICAEW

Accountants are important. Photograph: Getty Images

Richard Spencer, Head of Sustainability ICAEW

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How a dark night for Paris was made easier by British messages of support

The French Ambassador to the UK reflects on the Paris attacks, and how Britain's response helped make the aftermath more bearable.

I was at a dinner with members of London’s French community when news of the 13 November attacks in Paris first reached me. Our initial reaction – one that I think was shared the world over – was of shock. Young people, out on a Friday night, doing normal things that young people do: chatting, laughing, drinking, dancing. Enjoying the pleasures that are their right, in a city that lives and breathes music, conversation and, above all, liberty.

I felt a tragic sense of déjà vu as I followed the events unfolding on television. Less than a year ago, our country was attacked by murderers and fanatics who wanted to destroy the values that we hold dear. And again on 13 November, I watched as France fell victim to another cowardly and barbaric attack on its way of life.


Fraternité, solidarité

The grief that was shared by the French community here in London was made easier to bear by the messages of support that flooded in from around the country – if anything, even more than after the Charlie Hebdo attacks. I received countless phone calls, emails and letters from British friends, dignitaries, members of the public and faith groups, all conveying sympathy and friendship. I was particularly touched by a statement presented to me by representatives of 140 leaders of the Muslim community.

None was more powerful than the football match between England and France at Wembley, just four days after three suicide bombers blew themselves up outside the Stade de France in Paris. Never has the word “friendly” taken on such a literal meaning. It wasn’t about the football that night; it was about coming together and showing that we won’t live in terror. There have been so many stirring renditions of the French national anthem these past weeks – not least that of the French bass Nicolas Courjal following my appearance on The Andrew Marr Show – but the singing of La Marseillaise by the whole stadium, including the Prime Minister and Prince William, really did move me. I think the front cover of the Metro the next morning summed it up best: “England. France. United.”


Fitting tributes

The embassy in London was a focal point for many who wanted to show their support in the wake of the attacks. A sea of flowers and candles quickly formed outside, with a constant stream of people coming to sign the book of condolence that has now been sent to Paris. Once again, the British people showed that we can count on them in difficult times. I led a minute’s silence alongside the Home Secretary, Theresa May, which was observed all around the country in memory of the victims of the attacks.

Her presence was fitting, given the close relationship that our respective home secretaries have built. There are constant exchanges between the French and British security services, for the threat of terrorism is not faced by France alone. The whole of Europe must ensure that stronger security measures are put in place. We wish to preserve Schengen and the border checks are only temporary measures. But the external border needs to be much more secure and European border guards need to be present.


Beyond Calais

I’m glad that, after a tough summer, our message that Calais is only one part of a Europe-wide migrant crisis seems to have got through. The kind of criticism I heard in July, when I was asked time and again by the press why France wasn’t doing more to prevent migrants crossing the tunnel, is now much rarer. Indeed, Franco-British co-operation has been effective in Calais. But the “Jungle” is still there, inhabited partly by people who would qualify for refugee status and who will need to be taken care of. France is already doing a lot in that regard.


Current climate

Migration was on the agenda last week at the London School of Economics, where I opened a conference on its link with climate change, the last in a series of Franco-British events that the embassy has held in the run-up to the UN climate summit in Paris, which starts on 30 November. Life has to go on as normally as possible after the atrocities. Any­thing else would be a victory for the terrorists. The sense of momentum ahead of the summit is strong and hasn’t been diminished by the attacks. If anything, the sense of urgency is greater than ever. This summit is about securing the future of humanity – what could be more important than that?

Nuclear energy is one of the ways we can reduce CO2 emissions. President Xi Jinping of China’s recent visit to the UK resulted in decisive steps being taken towards the building of a new nuclear plant at Hinkley Point by the French company EDF. This project will provide secure, low-carbon energy to UK homes and reinforce the alliance between France and Britain for decades to come.


Old alliances

On Monday I attended a breakfast in Paris between David Cameron and François Hollande. Witnessing this new testimony to the strength of the century-old Entente Cordiale, I could not help but think, bemused, of those commentators who claim that to ensure the success of the British renegotiation, there will have to be a highly visible Franco-
British spat at a forthcoming European council . . . Speaking of friendship in times of crisis, two days before the Paris attacks, I presented 19 British veterans with the Légion d’honneur, France’s highest honour, in recognition of their role in securing France’s liberation during the Second World War. Over 1,000 have received their medals so far and many more will get them in the months to come. I’ve received a number of poignant letters from them as a result. In the midst of the grief and despair, it will be all the more moving to honour these veterans. They are a reminder that courage, determination and, above all, solidarity will triumph.

Sylvie Bermann is the French ambassador to the UK 

This article first appeared in the 26 November 2015 issue of the New Statesman, Terror vs the State