Harmonies UK carbon reporting legislation if you want companies to work successfully, says ACCA

by Admin | July 19, 2023

In response to the UK government’s consultation on Scope 3 emissions reporting, leading global accountancy body ACCA (the Association of Chartered Certified Accountants) has reiterated its call for support in driving the maximum level of cooperation between international and regional sustainability reporting.

A global baseline is vital for the consistent and comparable reporting of greenhouse gases. However, regions and countries around the world will have differing public policy objectives, which may drive different reporting requirements.

According to ACCA, organisations should be given clear and consistent guidance to support them to collect and analyse Scope 3 data, to reduce the risk of exposure to undue cost and effort.??

In a response to the UK government’s consultation, looking at the costs, benefits and practicalities of reporting, ACCA is clear in its stance that the responsibility for making materiality judgements and determinations rests with the reporting entity.

This is a challenge that should not be underestimated. Complying with the IFRS sustainability standards requires significant judgement, especially when the boundaries between ‘climate-related’ topics and other topics (i.e. water, biodiversity, social matters) can be blurred.?

ACCA has highlighted that the greatest challenge for organisations is in data collection and the quality of that data. ACCA also believes the benefits accrued from this reporting for stakeholders outweigh the additional burden that is undoubtedly imposed in business.