Climate Change Adaptation - Frontiers North Case Study
A new strategic initiative, sponsored by Chartered Professional Accountants of Canada and Natural Resources Canada, aims to help companies identify both risks and opportunities and adapt to the effects of climate change. In the first of a series of case studies, KKS helped CPA Canada to shed light on how climate change affects businesses and why accountants have an important role to play.
Frontiers North Adventures (FNA) runs programs for small groups keen on exploring the North’s wildlife and culture. Climate change and its challenges are not merely probabilities with a negative connotation, but a reality for the family business in Canada’s North. The team had to devise a focused strategy to accommodate to the risks and opportunities presented by climate change. Through a comprehensive optimization of current operations, the business directed its efforts toward an adaptation strategy to climate change so as to guarantee its viability for the future.
The accounting team had a substantial contribution to FNA’s climate change adaptation strategy. They had to apply a wide range of “traditional” accounting know-how to be of assistance to the FNA’s team to put their business on the right track to account for climate change.
Still, there are challenges to the accounting profession in the context of climate change: in the future accountants will be required to have a much broader range of skills and expertise so as to be better able to account for climate change-related risks and opportunities. Some insights from FNA include the ability of accountants to understand, analyse and utilize scientific reports together with climate change assessment frameworks. These additional competencies would enhance accountants’ input into the business strategy formation and implementation and would also improve the organization’s to withstand climate change’s adverse effects.