Grant Thornton considers actions against climate change a priority for the network.
In demonstrating our commitment, Grant Thornton joined the Net Zero Financial Service Providers Alliance (NZFSPA) alliance in September 2021. NZFSPA is one of eight sector-specific alliances within the Glasgow Financial Alliance for Net Zero (GFANZ). Joining the alliance requires us to sign an eight-part commitment related to:
- how we manage our own carbon footprint, and
- how we manage the delivery of our audit services as they might relate to carbon emissions.
Showing the way to build a more sustainable future
"The Grant Thornton network is committed to playing its part in helping to achieve a more sustainable future for our people, our clients and our communities. We have been an advocate and supporter of the UN Sustainable Development Goals for many years. Our decision to join the Net Zero Financial Service Providers Alliance in September 2021 was not only the right thing to do but is also aligned with our network strategy and its focus on improving network sustainability.
We know we must challenge conventions to find better solutions so our people, clients and communities can positively shape tomorrow.
We also know the path ahead is not straight forward. But I passionately believe private sector organisations like Grant Thornton can play a pivotal role in helping our clients chart the best route to net zero and help build a better world for future generations.
That’s why I’m delighted to share the progress we have made under the GFANZ reporting framework. The results are encouraging. But we know there is much more we need to do. This report provides an important first step in building a clearer picture of where we stand now, so we can continue to plan what more we need to do to reach net zero."
Peter Bodin
CEO Grant Thornton International Ltd
The Auditors commitment
The reporting framework (the framework) for use by the six largest global accounting networks[i] (GPPC networks or GPPC firms) for:
- measuring and tracking each network’s progress against the commitments made by each network to Net Zero Financial Services Providers Alliance (NZFSPA), and in particular to those commitments relevant to planning and performing audits in accordance with professional standards and in consideration of related guidance issued by standard setters and regulators, including as they relate to climate-related matters, and
- demonstrating each network’s commitment to discharging obligations under professional standards as external auditors with quality, integrity, and independence
The GPPC networks have chosen an 'inputs' based approach to measure progress against the commitments that relate to products and services, ie the financial statement audit. The illustration of the inputs will not only show the GPPC network’s commitment to the NZFSPA objectives but also help explain to a wider audience the various elements of audits that incorporate consideration of climate-related risk.
The framework contains four categories to measure progress against the commitments:
- Application of audit methodology
- Training
- Communications
- Reporting.
*Grant Thornton understands that other global accounting and auditing networks are reporting their results based on analysis of audit clients that are on the Climate Action 100+ list. This list of approximately 170 companies comprises entities Climate Action 100+ believes are key to driving the global net zero emissions transition. None of those companies are currently audited by Grant Thornton. Accordingly, in order to approximate the average number of audit engagements tracked by the other networks, Grant Thornton selected approximately 40 audits of companies in industries that involve carbon emissions across our ten largest member firms.
**The engagement team is defined as the audit professionals assigned to work on the group/parent audit of the company financial statements.
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i. Global accounting and professional services networks generally are networks of individual, locally owned and operated firms (often referred to as 'member firms') – they are typically one brand worldwide but, as influenced by local regulatory systems around the world, could be many separate legal entities. They are generally not under common ownership or control. In general, the structure is driven by the fact that the accounting profession is regulated locally, and local regulators typically require that accounting firms licensed to operate in their country be locally owned. The Global Public Policy Committee is the global forum of representatives from six global accounting networks, which has as its public interest objective the enhancement of quality in auditing and financial reporting.
