Accounting for Climate Change

Running head: ACCOUNTING FOR THE CLIMATE CHANGE
Accounting for Climate Change
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ACCOUNTING FOR THE CLIMATE CHANGE
Executive Summary
The purpose of this report is to understand the role of integrated financial reporting in
addressing the risk of climate change. Integrated reporting (IR) promotes an effective and
efficient approach to corporate reporting. With the fast changing climate across the globe, has
caused the corporation to think over the sustainability of the business. The unequalled
physical influence of ecological damage can be seen as the increase in the sea levels,
happening of extreme weather condition, massive flood, disastrous cyclone and the earth
quake. Therefore, business organization has a major role and accountability towards the
environment. They must take appropriate measure in controlling the environmental damage
through accounting the environmental impact of their business operation.

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ACCOUNTING FOR THE CLIMATE CHANGE
Table of Contents
Introduction................................................................................................................................3
Corporate governance and the climate change...........................................................................3
Voluntary Reporting Framework...............................................................................................5
Climate disclosure standard board Reporting framework......................................................6
Advantage of the CDBS reporting framework.......................................................................6
International Integrated reporting framework............................................................................7
Sustainability in the integrated reporting (IR).......................................................................8
Integrated reporting and the corporate governance................................................................8
GRI sustainability reporting.......................................................................................................9
Benefits and challenges associated with integrated reporting..................................................10
Benefits in IR reporting........................................................................................................10
Challenges faced in the integrated reporting........................................................................11
Integrated reporting and various stake holder..........................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................15

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ACCOUNTING FOR THE CLIMATE CHANGE
Introduction
With the rapid increase in the exploitation of natural resources, heavy increase in the
carbon emission in the production industry poses a major threat on the climate. Climate
change has become a major risk in the global economy. Task force on the climate related
financial disclosure (TCFD) classify the climate related risk into two groups , first is the risk
related to the shifting of the lower carbon economy and the risk related to the physical impact
of the climate change. Climate change has been visibly disrupting the business operation
across the global (Abeysekera, 2013).
The unparalleled physical impact of environmental damage can be seen as the rise in the
sea levels, occurrence of extreme weather condition at a regular interval, flood, cyclone and
the earth quake. All these happening of natural calamities has disrupted the business of the
enterprise and affecting the lives of the living being drastically (Alazzani and Wan-Hussin
2013).
These has caused the major effect on the natural habitat, scarcity of resources and
increase in global warming. Business organization used the natural resources to process them
into the final product. Tackling the climate change is the major need of the hour.
Business have the accountability towards, the society, their customer, employees, and
shareholder. The business organization must embedded in their decision of managing and
mitigation of change in the climate change. Management accountants have an important role
in the in driving sustainable strategic and operational decisions.