Accounting responds to global climate change

As carbon emission specialists keep watch on the Durban-based COP 17 Climate Change talks in South Africa, a recent report from CIMA has reinforced the key role accountants will have to play in greenhouse gas reduction. 

“As the gloom of the impending COP meeting in Durban is dominating headlines, our research report tells us that regardless of the progress in the international arena, many organisations are proactively developing their response to global climate change and are also realising the benefits from doing so,” commented professor Jan Bebbington, head of accounting and sustainable development at St Andrews University.

To prepare their CIMA-sponsored report ‘Strategic responses to global climate change: a UK analysis’ Bebbington and her colleague Dr Nick Barter together interviewed some 24 public and private sector organisations in carbon-intensive industries such as electricity, oil and gas, and manufacturing sector that have already had to get to grips with CO2 emmissions.

The UK government is currently looking for a 36% reduction in greenhouse gas (GHG) emissions by 2020. To work towards this target, accountants in affected industry have realised that accounting support is needed in three areas:

• Developing baseline data on organisation-related GHG emissions and reporting that data within and outside the organisation.
• Ensuring GHG emissions are incorporated into current-decision making and performance measurement.
• Providing information to support choices about the future – both mitigation and adaptation pathways.

The report sets out a 10-step “whole system” approach to address climate change.

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