INTHEBLACK December 2021 - Magazine - Page 25
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Sustainability
Accounting and
Accountability
from the
CPA Library
(IFRS) Foundation’s recent establishing of the
International Sustainability Standards Board
(ISSB), resembling the IASB.
The ISSB plans to start issuing sustainability
standards in 2022 in an attempt to bring the
plethora of non-financial reporting methods
under one umbrella. The first standard will deal
with climate change.
The International Organization of Securities
Commissions supports the initiative, as do the
International Federation of Accountants and
groups of large international investors such as
the Investor Group on Climate Change.
CARBON REDUCTION STRATEGIES
While the corporate world awaits the first of
the ISSB standards, Nick Ridehalgh, leader of
KPMG’s Better Business Reporting Group,
points to a useful entry point for corporate
accountants wanting to get started on helping
reduce their company’s carbon emissions.
CATEGORISING
EMISSIONS
Scope 1:
Scope 2:
Scope 3:
Scope 1 emissions
are direct
greenhouse gas
(GHG) emissions
from sources owned
or controlled by an
organisation.
Examples of Scope 1
emissions include
emissions from
combustion in
owned or controlled
boilers, furnaces and
vehicles or from
chemical production
in owned or
controlled process
equipment.
Scope 2 emissions
occur from the
generation of
purchased electricity
(electricity that
is purchased or
otherwise brought
into the
organisational
boundary of
the company)
consumed by a
company. Scope 2
emissions physically
occur at the facility
where electricity is
generated.
Scope 3 is an optional
reporting category
covering all other
indirect emissions
occuring as a
consequence of the
company’s activities,
but from sources not
owned or controlled
by the company.
Examples include
extraction and
production of
purchased materials,
transportation of
purchased fuels and
use of sold products
and services.
DIRECT GHG
EMISSIONS
ELECTRICITY
INDIRECT GHG
EMISSIONS
OTHER INDIRECT
GHG EMISSIONS
Source: ghgprotocol.org
intheblack.com December 2021 25