Post by sweetpea33 on Jan 23, 2024 23:08:04 GMT -6
TCFD, created by the G20 Financial Stability Board, issued its disclosure recommendations back 2017. Since then, thousands of companies, governments and others have lined up in support. It’s undeniable that climate risks and opportunities are material to corporate performance and must be included in audited financial statements. While coming mandates are clear, the required disclosures are still a bit murky. There is real momentum behind the IFRS Foundation’s move to develop international "sustainability reporting" standards.
The trustees meeting this month may shed some more light, but don’t hold your breath; the IFRS already has stated that it will "produce a definitive proposal (including a road map with timeline) by the Email List end of September 2021, and possibly leading to an announcement on the establishment of a sustainability standards board at the meeting of the United Nations Climate Change Conference COP26 in November 2021." With the slow pace of standards development, companies are facing uncertainty about what information to collect. While the requirements are unclear, carbon accounting procedures are well established.
The greenhouse gas protocol has been around for many years and sets out a detailed process (more than 700 pages) for measuring corporate carbon footprints. While we wait to see what the required disclosures will be, companies can get a leg up by ensuring that their current carbon reporting is as aligned as possible with the greenhouse gas protocol. Accounting for carbon emissions from large enterprises is a daunting job. Complex multinational enterprises conduct thousands of carbon-generating transactions each day.
The trustees meeting this month may shed some more light, but don’t hold your breath; the IFRS already has stated that it will "produce a definitive proposal (including a road map with timeline) by the Email List end of September 2021, and possibly leading to an announcement on the establishment of a sustainability standards board at the meeting of the United Nations Climate Change Conference COP26 in November 2021." With the slow pace of standards development, companies are facing uncertainty about what information to collect. While the requirements are unclear, carbon accounting procedures are well established.
The greenhouse gas protocol has been around for many years and sets out a detailed process (more than 700 pages) for measuring corporate carbon footprints. While we wait to see what the required disclosures will be, companies can get a leg up by ensuring that their current carbon reporting is as aligned as possible with the greenhouse gas protocol. Accounting for carbon emissions from large enterprises is a daunting job. Complex multinational enterprises conduct thousands of carbon-generating transactions each day.