Accounting Industry Survey Reveals Major Knowledge Gap Around Climate Reporting

From 1 January 2025, mandatory climate reporting is legislated in Australia, impacting an estimated 80,000 businesses* over the following three years. Similarly, the UK is anticipated to implement comparable regulations in 2025, with many businesses already facing pressure from major clients to disclose their carbon emissions. These evolving requirements present a significant opportunity for the accounting industry to support clients in meeting these obligations.

A new study from climate reporting platform Trace reveals that the accountancy industry is largely unprepared to assist clients in climate reporting, despite acknowledging the enormous benefits of offering these services.

Climate Reporting Revolution: The Future of Accounting explores the accounting industry’s critical role in climate reporting, and finds that:

• 67% of accountants feel unprepared to discuss climate reporting with their clients
• 30% of accountants are unsure if their clients will be impacted by mandatory reporting
• Yet 96% of accountants see potential benefits in offering climate reporting to clients

The survey questioned 156 accountancy professionals across the UK and Australia, from a range of roles and levels of seniority.

Despite respondents’ clear knowledge gap around the need and scope for climate reporting services, the majority acknowledged benefits for doing so, such as an enhanced firm reputation (63%) and increased revenue (60%).

Most respondents from large firms (500-5,000 clients) also stated that offering climate reporting services will be important for customer retention.

Furthermore, 75% of respondents believe the accounting industry will play a pivotal role in addressing climate change.

Joanna Auburn, Co-Founder of Trace, said: “As business concerns around the climate crisis grow in urgency, companies will increasingly look for support with climate reporting. The accountancy industry is exceptionally well-placed to offer much-needed advice and guidance, but as this research shows, it is not yet prepared to take advantage of this opportunity.”

Philip Turnbull, AIA Chief Executive, commented: “AIA supports the growing need for climate reporting and recognises the significant role accountants can play in helping businesses navigate these new requirements. As regulatory frameworks evolve, accountants have a key opportunity to develop their expertise and provide invaluable guidance to their clients. Ensuring the profession is well-equipped to meet these challenges will be crucial in supporting businesses on their journey towards sustainability and compliance.”

Download the report