Greenhouse gas emissions reporting and assurance: Reflections on the current state

Purpose: Global climate change has become a major societal issue providing the impetus for governments to legislate policy in order to manage and mitigate greenhouse gas (GHG) emissions. To assess whether the use of biomass can reduce GHG emissions requires accounting, reporting and assurance methods and procedures. The purpose of this paper is to illustrate key challenges of GHG reporting and assurance with the example of the Australian framework. Design/methodology/approach: This viewpoint, discussing GHG emissions reporting and assurance, critically analyses some of the key issues arising in practice, including the current state of organizations' systems and controls, the changing nature of governance structures as well as measurement challenges being experienced by companies regarding GHG reporting. Findings: The paper finds that more rigorous governance frameworks and management systems are likely to evolve around GHG reporting given the recent introduction of the carbon pricing mechanism and its nexus to companies' financial performance as well as increased risks associated with inaccurate reporting. Practical implications: The paper contains an overview of the current regulatory environment and key issues surrounding GHG reporting and assurance. Originality/value: The management of GHG-related issues has significant implications for organisations. The paper provides both practitioner and academic perspectives on the current issues and challenges within the GHG reporting context.