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#1617 Embed Environmental Showback (Carbon, Energy, Water) and Spend-Proxy Audit into Cost Management (COMG) and Financial Management (FMIT) [GreenOps] change request pending

Amend COMG and FMIT to include allocating and showing back environmental impact (carbon, energy, water) alongside financial spend to consuming business units and auditing financial models to eliminate spend-based proxy distortions.

Problem Statement

CR Raised in consultation with global GreenOps industry groups.

FinOps and Technology Business Management (TBM) frameworks successfully show back financial costs to business service owners, but SFIA 9 Cost Management (COMG) and Financial Management (FMIT) lack competencies for environmental showback. Putting consumption and carbon metrics in front of the service owners who generate demand is one of the most effective levers for driving behavioural change. Additionally, financial partners frequently derive carbon estimates from financial spend, creating false carbon reductions whenever suppliers cut prices or offer discounts.

Proposed Change

Amend COMG and FMIT descriptors:

  • COMG (Levels 3–5): Allocates energy, water, and carbon impact alongside financial costs to specific business services and consumers; produces joint financial and environmental showback reports.
  • FMIT (Levels 4–6): Establishes environmental cost allocation methodologies; audits financial models to distinguish measured activity data from spend-based proxies, removing spend-proxy distortions from financial decision-making.

Rationale

  • Connects financial management directly with business service ownership and demand management.
  • Aligns with TBM for Sustainability principles and eliminates misleading spend-based carbon accounting.

  

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 Cost management

Current status of this request: pending