As one of the three pillars of the Next Generation ACA, sustainability will be embedded throughout the qualification, forming a fundamental part of students’ professional toolkit from day one. “Our economic prosperity ultimately depends upon a successful planet and thriving societies,” says Richard Spencer, Director of Sustainability at ICAEW. “There is a strong business case for the transition to a net-zero, nature-positive, just world, and our members have a huge role to play, because they’re advising businesses. That’s why it needs to be in business qualifications like this.”
Over the past 10 years, Richard and his team have worked closely with the Education & Training department to embed sustainability content across the ACA, updating the syllabus each year to reflect changing legislation, trends and behaviours. The phased introduction of the Next Generation ACA, beginning with Certificate Level in 2025, builds on that work, creating a competency framework that ensures a smooth, coherent progression through the qualification.
Sustainability and education consultant Steve Tinsley was brought on board earlier this year to advise on sustainability content in the ACA and become an exam moderator. So far, he has been impressed with the institute’s approach. “I work with a team of people within ICAEW that are very forward-thinking,” he says. “They can see that the world is now going to require some kind of accounting mechanism, not just for the financial activities of a business, but also for its social activities and how it engages with nature. All these things are starting to creep into the reporting requirements of an organisation – and, of course, the accountants now are responsible for that reporting, and they need to understand what that means and what it looks like.”
Sustainability is front and centre in the revamped qualification, Steve explains, reflecting what is happening in the wider business world. “Until now, it has been financial reporting that ensures the credibility of a business and sets its position. But now, new laws are coming in regarding the impact of a business’ activities on the environment and society, and how that impact is reported. It’s an organisational shift – and the reporting has to shift with that.”
At Certificate Level, a new Sustainability and Ethics module will provide a solid foundation of knowledge for trainee accountants. Central to this knowledge is the understanding that, alongside the financial reporting framework, there is now a non-financial reporting requirement that goes hand-in-hand with it – and is equally important. Richard describes this initial understanding as a ‘battery pack’ that will be added to as students progress through the qualification, and on through their careers. Sustainability will also be increasingly prominent within exam questions across every module and level. “Sustainability is an embedded part of learning across the ACA and the new case studies at Professional and Advanced Levels mean the opportunities to integrate sustainability are much wider,” says Steve. “It could mean producing a set of accounts for a sustainable company and how that might look, or how sustainable decisions affect and drive a company’s future strategy, but all involving more accessible information and providing transparency.”
Alongside the 14 core modules and professional work experience requirements, the Next Generation ACA introduces Specialised Learning and Development, a ‘menu’ of tailored units that employers and students can select from depending on their region, sector and specialism. “If you want to do more social accounting, for example, or your focus is on joining the Environment Agency, which is more nature accounting, you can start to look at those areas of interest within the accounting structure and customise your training to get to that point,” explains Steve.
Again, learning will always be relevant and appropriate, adds Richard. “It’s about giving you the depth of expertise where sustainability and accountancy overlap,” he explains. “You’re not going to end up being a biodiversity expert; what you’re doing is taking yourself from ‘I understand transition planning’ to ‘I can develop a transition plan’ – and, ultimately, ‘I’m recognised in the market as the person who does transition plans.’”
The other advantage of the new Specialised Learning and Development framework is the potential to create and update content rapidly to ensure it remains current and relevant – particularly important in a fast-moving area such as sustainability. “I think one of the things that’s absolutely inspired about these additional units is that you build in flexibility and agility,” says Richard. “The sustainability conversation is really quite new, and over the next few years it will change very, very quickly,” adds Steve. “Every year there will be an introduction of something new. And as the whole subject area develops, and businesses identify areas where they can gain competitive advantage by pursuing something more sustainable, more measurable, more transparent, so these specialised conversations can move along quickly.” So, our ability to update Specialised Learning content is key to us responding timely to progress in these areas. Coupled with our robust annual update of the ACA syllabus, this means we continue to have a future-fit qualification.
The journey that begins and builds through the Next Generation ACA is the start of a commitment to lifelong learning. Not only will newly qualified chartered accountants start their careers with sustainability as a key part of their professional ethos, but they will be equipped to lead the way with their employers and their clients. “The new people coming in are the innovators, the change agents for this new way of business,” says Steve. “The younger generation are very aware of the environment and focused on what’s right and wrong. They’re not just going to be accountants; they’re going to be accountants who measure and record the impact of businesses on the environment and society. That’s very powerful."