“All stakeholders have to know if a reporting entity can make the transition to be net zero carbon and have access to the capital that will be required to make this happen. This is a financial reporting, and thus an accounting, issue and so has to be on the balance sheet. Accounting cannot be neutral and should, therefore, both report and encourage good practice and be a core part of that process of change”
As the article says: “With their unique skills, accountants are better placed than most other professionals to calculate accurately the environmental costs of companies’ business decisions and integrate climate risk into organisational strategy, finance, operations, and communications.”
The report talks about large companies with outside investors, but I don’t see why small companies shouldn’t do their bit. For accountants and owners it will be good practice at measuring what really matters.