#1600 Embed carbon accounting and Scope 1/2/3 emissions modelling dimensions into Financial Management (FMIT) and Investment Appraisal (INVA) change request pending

Problem Statement: SFIA 9 financial skills — particularly Financial Management (FMIT, Levels 4–6) and Investment Appraisal (INVA, Levels 4–6) — are financially rigorous but contain no reference to environmental accounting, carbon cost attribution, or integration of non-financial ESG metrics into financial models. The TBM for Sustainability & ESG Framework explicitly requires practitioners to model carbon, energy, and water costs alongside financial costs using structured taxonomies (TBM Taxonomy 5.0). Without this, a practitioner demonstrating SFIA financial competency may be unequipped to perform ESG-integrated financial analysis.

Proposed Change:

Amend FMIT descriptors at Levels 4–6 to include:

·        Understanding and application of carbon accounting principles alongside financial cost management.

·        Ability to model environmental cost pools (energy, carbon, water) in parallel with financial cost pools.

·        Integration of non-financial ESG metrics into financial performance reporting.

 

Amend INVA descriptors at Levels 4–6 to include:

·        Appraisal of ESG-related investments incorporating carbon cost/benefit analysis.

·        Assessment of Scope 1, 2, and 3 emissions reduction as a financial and strategic return metric.

·        Reference to green finance standards and ESG investment criteria.

 

Rationale:

• Directly addresses Gap identified in Section 2.1 of the gap analysis.
• Aligns with GHG Protocol, IFRS/ISSB S2, and CSRD financial disclosure requirements.
• Reflects the growing expectation that technology financial managers operate with dual financial and environmental accountability.

Applies to: FMIT — Financial Management; INVA — Investment Appraisal

Change Note: Proposed additions to existing skill descriptions at Levels 4–6. No structural changes to level numbering or skill category.

Note: More than 36 jurisdictions globally are actively adopting or aligning their corporate disclosure regulations with the IFRS Sustainability Disclosure Standards (ISSB) to create a global baseline for climate and sustainability reporting. Beyond the UK, the EU, and Australia, numerous other countries have formally finalised their approach to adopt or closely align with these rules, including Brazil, Canada, Chile, China, Hong Kong, Japan, Malaysia, Mexico, Nigeria, Qatar, and Turkey. Additionally, nations such as Singapore, South Korea, India, and Indonesia are in advanced stages of implementing ISSB-aligned frameworks. View official implementation maps and country-by-country data on the IFRS Foundation Jurisdictional Profiles page.

Proposed change applies to Financial management

Current status of this request: pending