Accounting and reporting challenges of environmental credits
By 
Maria L. Murphy2023-03-15T15:26:00
Companies across the globe are working on plans to reduce their carbon emissions. The popularity of environmental credits has grown as a way for companies to meet their emission reduction targets.
“Many companies are already using or plan to use environmental credits as part of their overall strategy to achieve sustainability goals,” said Eric Knachel, senior consultation partner at Deloitte & Touche. “A lot of companies that set voluntary targets for carbon emission reduction may be realizing that relying on more efficient equipment or new technologies may not be sufficient to achieve their goals.”
Environmental credits include carbon allowances and offsets, renewable energy certificates (RECs), and other credits related to climate and emissions. These arrangements and the definitions of the related credits are complex but fundamental to companies developing strategies and seeking to understand the accounting and disclosure implications.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
PremiumSEC unveils joint data sharing standards with eight other financial regulators
A joint proposal from nine U.S. financial regulators on data standards aim to streamline submissions and ease data sharing among agencies, the Securities and Exchange Commission announced.
-
News BriefTreasury, other agencies issue voluntary carbon market principles
The Treasury Department and other U.S. agencies announced a coordinated federal policy concerning carbon credits and other voluntary incentives to encourage businesses and agriculture to cut their carbon footprints.
-
PremiumNeed to know: FASB proposal on accounting for crypto assets
The Financial Accounting Standards Board issued a proposed accounting standards update to improve accounting and disclosures for certain crypto assets.
More from Accounting & Auditing
-
PremiumExperts explain why IIA's new global audit rules will be 'central' to securing high-quality assurance
Compliance teams should expect more support from their organization’s internal audit functions. That is the clear message from the Institute of Internal Auditors, the global body of national affiliated internal audit institutes, which has just put into action its new Global Internal Audit Standards.
-
PremiumChinese regulators impose six-month ban, $62M fine on PwC’s China unit
Chinese authorities banned PwC’s Chinese unit from performing audits in the country for six months, labeling the subsidiary’s flawed audit work as complicit in the failure of giant property developer Evergrande.
-
News BriefPCAOB Chair Williams appointed to second term
Erica Williams was reappointed to a second term as chair of the Public Company Accounting Oversight Board after an ambitious first three years in the role that have seen the agency work to update many of its standards deemed outdated.