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AICPA & CIMA sustainability brief: Accounting for Carbon

he second in a series of four AICPA & CIMA “Accounting to meet this goal set out in the 2015 Paris Agreement, country
Tfor” briefs is Accounting for Carbon. pledges must be translated into action by corporates,
Carbon accounting is a general, shorthand term that organisations, and small and midsize enterprises (SMEs) in a
includes the measurement of greenhouse gases emitted by an global campaign, the Race to Zero. And this is where carbon
organisation. This brief is designed to help finance accounting can help.
professionals build their climate change literacy, allowing In October 2021, AICPA & CIMA joined forces with 12 other
their organisations, firms, and clients to adapt new business accounting bodies to fight climate change by committing to
models and reduce their carbon footprints. reach a net-zero greenhouse gas emissions target. As progress
The brief includes ways to integrate carbon accounting is made, AICPA & CIMA will share their own — and others’ —
into businesses’ long-term decision-making and how to net-zero journey learning and experience, as examples to
incorporate their low-carbon transition progress into internal support members, their clients, and the wider business
and external reporting. community.
At the UN climate change conference in November 2021 The first brief in this series, released in November 2021, IMAGE BY MICROSTOCKHUB/ISTOCK
(COP26) many countries presented net-zero carbon pledges explored Accounting for the Sustainable Development Goals.
and decarbonisation plans that collectively work towards A further brief in 2022 will explore the theme of accounting
limiting global warming to below 2 degrees Celsius. In order for biodiversity.

38 I FM MA G AZINE I June 2022
38 I FM MAGAZINE I September 2021