Lecture 3 - Accounting Flashcards
Ways of Transformation Function
- The Self-reflection way
- The pushback way
6 Environmental Objectives of the Taxonomy (Greenness)
- Climate change mitigation
- Climate change adaptation
- Protection of water & Marine resources
- Waste reduction, recycling & transition to a circular economy
- Pollution prevention & control
- Protection & Restoration of Biodiversity & Ecosystems
3 important taxonomy-based measures
- Turnover
- CapEx
- OpEx
Turnover Equation
Taxonomy Aligned Turnover / Total Net Turnover
CapEx Equation
Taxonomy Aligned CapEx / Total CapEx
OpEx Equation
Taxonomy Aligned OpEx / Total OpEx
Financial Materiality
“Information on a company is material and should therefore be disclosed if a reasonable person would consider the information important”
Impact Materiality
“It is not just climate-related impacts on the company that can be material but also impacts of a company on the climate and other sustainability dimensions that can be material”
Double Materiality
The combination of Financial and Impact Materiality
3 Reporting Standards
- European Sustainability Reporting Standards
- IFRS Sustainability Standard
- SEC Climate Disclosure
EFRAG & ISSB
European Financial Reporting Advisory Group
International Sustainability standards Board
Auditing of Sustainability steps to be made
Established & Standardized procedures
Skills & Knowledge to audit Sustainability information
Experience to develop & Audit information about
Proprietary costs
Loss of competitive advantage by disclosing important information
Carbon Accounting
Methods to measure how much Greenhouse Gas (GHG) emissions a company is responsible for (3 Scopes)
3 Scopes of GHG emissions a company can be responsible for
Scope 1: GHG emissions that a company makes directly
Scope 2: GHG emissions a company makes indirectly
Scope 3: All GHG emissions a company is indirectly responsible for in the upstream (suppliers) & downstream (customers) supply chain
