How accountants can help fight climate change ? | Eu-Lin Fang | TEDxESSECAsiaPacific

Summary

Yulin, an accountant turned sustainability expert, discusses the pivotal role of accountants in combating climate change. She traces the history of accounting principles established by Luca Pacioli, which fostered trust in commerce. Yulin emphasizes the urgency of addressing climate change, highlighting the critical levels of CO2 in the atmosphere and the global temperature rise. She introduces the 1.5 and 2-degree Celsius benchmarks, explaining their significance to our future. Yulin points out the challenges in measuring and reducing carbon emissions but expresses optimism in technology, nature-based solutions, and collective action. She argues that accountants, with their expertise in measurement and verification, are uniquely positioned to contribute to climate change mitigation, urging everyone to join the fight for a sustainable future.

Takeaways

• 📚 The principles of accounting, including debits and credits, were established by Luca Pacioli in his book 'Summary of Arithmetic, Geometry, Proportions, and Proportionality', which laid the foundation for trade and commerce development.
• 🌱 Yulin transitioned from a financial auditor to a sustainability and climate change professional, highlighting the relevance of accounting in environmental issues.
• 🔢 The current CO2 concentration in the atmosphere is at 418 parts per million (ppm), which is significantly higher than the natural levels of 200-300 ppm over the past 800,000 years.
• ⚠️ An increase of 1.1 degrees Celsius in global temperature since pre-industrial times is already causing noticeable effects, with scientists warning of more severe impacts at 1.5 and 2 degrees Celsius increases.
• 🌊 The world's coral reefs, wheat production, and overall climate stability are at risk with higher temperature increases, emphasizing the urgency to limit global warming to 1.5 degrees Celsius.
• 🌐 There are approximately 51 gigatons of CO2 in the atmosphere, which is equivalent to 51 billion tons, and scientists advise halving emissions by 2030 to stay within a 1.5-degree scenario.
• 📉 Despite the global slowdown in 2020 due to COVID-19, carbon emissions only decreased by 6-7%, indicating the enormity of the challenge to meet decarbonization targets.
• 💡 Three areas of hope in combating climate change include technology and innovation, nature-based solutions, and community, business, and government collaboration.
• 🌿 Accountants can play a pivotal role in fighting climate change by leveraging their expertise in measurement, disclosure, adding credibility, and driving change in sustainability standards.
• 🌟 The future envisioned by Yulin includes a shift to electric vehicles, renewable energy sources, and a commitment to education and clean air for all, making it a future worth fighting for.

Q & A

What significant event happened in 1494 that influenced accounting?

In 1494, Luca Pacioli, a Franciscan friar and mathematician, published the book 'Summary of Arithmetic, Geometry, Proportions and Proportionality' which helped establish the principles of accounting, particularly around debits and credits.

Why are debits and credits important in accounting?

Debits and credits are fundamental to accounting as they form the basis for recording financial transactions, enabling the maintenance of financial records and the preparation of financial statements that instill trust and accountability among investors and stakeholders.

What is the significance of the number 418 ppm in the context of climate change?

418 ppm refers to the concentration of carbon dioxide in the atmosphere, measured in parts per million. It is significant because it indicates a level that is higher than the natural oscillation range of 200-300 ppm, which has been the norm for approximately 800,000 years.

How does an increase in carbon dioxide levels affect the Earth's temperature?

An increase in carbon dioxide levels leads to more greenhouse gases in the atmosphere, which trap heat and cause the Earth's surface temperature to rise.

What are the potential consequences of the Earth's temperature rising by 1.5 degrees Celsius?

At 1.5 degrees Celsius of warming, scientists predict that 70 to 90 percent of coral reefs will vanish, reproduction in certain species will decrease by seven percent, and there will be a significant reduction in wheat production in the tropics.

What is the difference between the impacts of a 1.5 degrees Celsius and a 2 degrees Celsius temperature rise?

At 2 degrees Celsius of warming, the negative impacts are more severe, with 99 percent of coral reefs expected to vanish, a 16 percent reduction in wheat production in the tropics, and an increased frequency of heatwaves and extreme weather events.

How many gigatons of CO2 are emitted into the atmosphere annually, and what is the goal to limit global warming to 1.5 degrees Celsius?

Currently, approximately 51 gigatons of CO2 are emitted into the atmosphere annually. To limit global warming to 1.5 degrees Celsius, scientists recommend halving these emissions by 2030 and reaching net-zero emissions by 2050.

What was the reduction in global carbon emissions during the COVID-19 pandemic in 2020?

Despite the significant reduction in global activities during the COVID-19 pandemic in 2020, the decrease in carbon emissions was only around 6 to 7 percent.

What are the three areas of hope mentioned in the transcript for combating climate change?

The three areas of hope mentioned are technology and innovation, nature-based solutions, and community, businesses, and governments setting ambitious targets to confront and fight climate change.

How can accountants contribute to the fight against climate change?

Accountants can contribute by measuring and disclosing greenhouse gas emissions, adding credibility through verification of carbon offsets, and driving change by influencing global governance and reporting standards related to sustainability.

What is the role of accountants in ensuring trust and accountability in the context of ESG (Environmental, Social, and Governance) reporting?

Accountants play a crucial role in ESG reporting by applying their expertise in measurement, disclosure, and verification to ensure the accuracy and reliability of sustainability information, thereby fostering trust and accountability among stakeholders.