Sitharaman urges CAs to adopt carbon, CSR, ESG practices
Finance minister Nirmala Sitharaman has urged chartered accountants (CAs) in the country to familiarize themselves with new-age concepts and areas of accounting and compliance including carbon accounting, CSR (corporate social responsibility) accounting and auditing as well as due diligence related to ESG (environmental, social and governance) to be at par with their counterparts in other nations amid changing global practices and compliance needs. “There are newer areas with which chartered accountants will have to familiarize themselves, especially given global developments, to better advise clients on new greenfield areas.
Whether it’s carbon accounting, CSR accounting and auditing, or ESG reporting," she said, speaking at the national CA conference organized by the Institute of Chartered Accountants of India (ICAI) in Bhubaneswar on Thursday. The finance minister put the onus on CAs to set up best practices as a template for complying with global requirements, which she said will increasingly become mainstream.
Sitharaman said India’s new economy was being driven by start-ups, new-age industries and industries transitioning from traditional methods to modern approaches, which require CAs to not only use technology themselves, but also urge their clients to do the same. “All of this requires the support of CAs, guiding clients and encouraging them to embrace new technology.
This will be possible only when CAs are at the top in adopting technology. I hope you will build on the success of the World Congress of Accountants held in November 2022, and you should strive to forge more collaborations with other international organizations," she said.
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