Skills like sustainability reporting and compliance are in demand in Asia Pacific, as a talent shortage has left employers seeking to build career paths for accounting professionals to make the pivot.
A report from Singapore’s Accountancy Workforce Review Committee, released in May last year, found that an evolving business landscape and rising environmental, social and governance (ESG) concerns are driving demand for new skills among accountants. It noted that declining student enrolment and high attrition rates have caused talent gaps in the city-state’s accountancy sector, hampering its ability to meet demands for sustainability reporting and forensics.
‘South-East Asian accounting firms face a global recruitment and retention challenge’
Retention challenge
‘South-East Asian accounting firms face what is a global recruitment and retention challenge,’ says Stephen Darley, Asia Pacific regional leader for RSM International.
In response, firms are seeking to demonstrate that accounting is a future-focused profession that has scope for innovation, Darley says. Universities, too, have transformed their accounting curriculum to incorporate sustainability competencies, recognising that tomorrow’s accountants need broader skillsets beyond traditional financial reporting.
In a seminar last year during ACCA Singapore’s Technical Symposium, Susan Foong FCCA, assurance practice leader for Baker Tilly, said that accountants have opportunities to play an important leadership role in companies’ sustainability journey.
Reskilling in sustainability topics will help accountants seize the opportunities emerging in this dynamic field, Foong says. ‘We look forward to moving forward so we can grab those opportunities ahead for us. We can then apply the skills we already have, and we will definitely have a place to play a key role.’
Integrating skills
As IFRS S2 implementation came into force in 2024, firms are now prioritising sustainability reporting skills in their hiring and training programmes, says Darley. RSM Vietnam has taken a proactive approach by integrating required skills and knowledge into its hiring process, screening future sustainability reporting leaders at an early stage so they can be empowered to become leaders.
‘Younger RSM professionals value their involvement in integrated reporting measures’
‘Younger RSM professionals in Singapore have also valued their involvement in integrated reporting measures, which broadens their skillsets and enables them to work on a number of additional sustainability-related projects,’ Darley adds.
The global assurance and tax consulting firm is also working to understand the early expectations of accounting students and tailoring career pathways accordingly. ‘Having entered our industry, young professionals typically favour flexibility, clear growth opportunities and the prospect of global mobility in their careers,’ Darley says.
The real challenge in finding ESG talent isn’t just in hiring, but in finding professionals who can bridge sustainability and business strategy. ‘We need experts in ESG reporting, carbon accounting and climate risk analysis, who can also work with data and digital tools,’ says Tina Thomas, head of ESG and sustainability at Baker Tilly in Singapore.
The market is becoming highly competitive, Thomas adds: ‘Everyone from banks to multinational corporations is looking for ESG talent.’
‘If companies don’t create strong retention strategies, they risk losing their best people’
Beyond box ticking
In facing retention issues, firms will have to tackle a problem of professionals no longer feeling as though they belong in their organisations. Having career pathways, the right support, and professional development opportunities to elevate their expertise and exposure can be vital in giving a sense of connection to an organisation.
‘If companies don’t create strong retention strategies, they risk losing their best people to higher-paying or more purpose-driven roles,’ Thomas says.
Education agenda
Students are increasingly aware of the growing importance of sustainability and ESG factors in business, says Premila Gowri Shankar, division of accounting head at Nanyang Business School in Nanyang Technological University.
‘Our accounting programme integrates sustainability as part of our curriculum, ensuring that our graduates are well prepared to meet industry needs,’ Professor Shankar says.
At Singapore Management University (SMU), meanwhile, sustainability literacy has become a graduation requirement for every accounting student.
‘More students are also eager to contribute meaningfully to sustainability efforts, seeing sustainability accounting as a way to drive real impact in their careers,’ says Professor Seow Poh Sun, associate dean of teaching and curriculum at SMU.
‘ESG talent stays where sustainability is real and not just a PR exercise’
Both academics believe that firms should prioritise giving aspiring accountants hands-on exposure to the diverse sustainability strategies and initiatives that businesses are adopting to meet their goals.
‘Beyond traditional financial reporting skills, interns should develop proficiency in sustainability reporting frameworks, carbon accounting, ESG risk assessment and impact measurement,’ Seow says.
Without a collective effort to upskill and build capacity, the market risks becoming more fragmented, says Lam. ‘The reality is there is a talent shortage of individuals with deep expertise and experience in sustainability reporting, accountants or not,’ he says.
Firms that go beyond box-ticking and demonstrate real commitment to ESG values are the ones that will attract the best talent, says Thomas: ‘More than anything, ESG talent stays where sustainability is real and not just a PR exercise.’
