Climate change mitigation and adaptation: the role of accountants, challenges and future directions

As businesses encounter increasing disruptions and reputational risks due to evolving regulations and changing consumer preferences, effective climate change mitigation and adaptation strategies become essential. Accountants play a vital role in this process by integrating climate strategies into business planning, advancing sustainable practices, and evaluating climate-related risks. This paper examines the role of accountants in addressing climate change, particularly within environmentally sensitive organizations. It highlights how accountants support businesses in navigating new regulations, assessing climate risks, and developing mitigation strategies, while also enhancing climate-related disclosures to meet regulatory and stakeholder expectations. Major challenges include integrating Environmental, Social, and Governance (ESG) metrics into traditional financial reporting, the absence of standardized climate accounting frameworks, and adapting to evolving regulatory demands. Frameworks such as those from the International Sustainability Standards Board (ISSB) and the Task Force on Climate-related Financial Disclosures (TCFD) are essential for improving transparency and decision-making. Additionally, effectively communicating climate-related information requires tailoring content to the audience's understanding and using clear, accessible language. This paper explores these issues, identifies current challenges, and proposes future directions for accountants in climate change mitigation and adaptation, thereby enhancing organizational resilience and economic sustainability.