ACCA unveils framework for responsible investment

Core Insights - The Association of Chartered Certified Accountants (ACCA) has introduced a framework to connect environmental and social factors with investment strategies, published ahead of COP 30 [1] - The framework outlines a method for businesses to incorporate sustainability considerations into their investment planning [1] Summary by Sections Framework Overview - The ACCA framework identifies eight main steps for responsible investment: ESG integration, adopting sustainability frameworks, screening approaches, investor engagement, defining strategic objectives, selecting investment options, meeting regulatory standards, and tracking results [2] - There is currently no agreed definition of responsible investment, despite its increasing influence on investment decisions [2] Investment Assessment - Investors are assessing a mix of qualitative and quantitative extra-financial risks, which may include stakeholder interests, legal obligations, and dependencies [3] - The report indicates that many investees need to enhance their balance of financial, ecological, and social value creation to better access responsible finance [3] Academic and Industry Perspectives - The report is described as a comprehensive reference for investors, asset owners, and regulators in a complex investment landscape [3] - ACCA Sustainable Business head noted the lack of a unified approach to responsible investment despite the growing expectations on businesses to address climate change and social inequity [3] Climate Technology Insights - A report titled 'The Climate Tech Forecast' revealed that 66% of surveyed organizations consider climate technology essential or anticipate its growing importance [4] - The ACCA emphasizes the importance of integrating all risks and opportunities into investment analysis and capital allocation through their framework [4]