Developing an International Assurance Standard on Carbon Emissions Disclosures

Abstract

Governments, organizations and individuals around the world are paying increasing attention to climate change and carbon emissions. This paper argues that a new international assurance standard on carbon emissions disclosures is an appropriate response by the auditing and assurance profession to these challenges. At its December 2007 meeting the International Auditing and Assurance Standards Board (IAASB) approved a project to consider the development of an international standard or guidance for such a service. Such a development is aimed at promoting trust and confidence in disclosures of carbon emissions, including those required under emissions trading schemes. This paper assesses the types of disclosures that can be assured, and outlines the issues involved in developing an international assurance standard on these disclosures. The discussion reflects and expands upon the insights gained from four international roundtables on the proposed IAASB assurance standard held in the Asia-Pacific, North America and Europe during 2008, and an IAASB meeting addressing this topic in December 2008.