Greenhouse gas accounting: global problem, national policy, local fugitives

Abstract

PurposeThe purpose of this paper is to raise a selection of issues and questions that have begun to face academics and business professionals in the technically complex field of greenhouse gas accounting.Design/methodology/approachThis paper drew on accounting, audit and assurance‐based field work whilst the author was employed with a “Big 4” accounting firm and undertaken with a range of Australian companies preparing to report greenhouse gas emissions to the Australian Government for the first time during June‐October 2009. The issues discussed in this paper include: determination of organisational boundaries and ownership of greenhouse emissions; determination of operational boundaries and how to account for the greenhouse emissions of contractors; and challenges of measuring and accounting for greenhouse gas emissions in the underground coal mining industry.FindingsThis paper highlights the need for further research into greenhouse gas accounting methodologies.Research limitations/implicationsThe paper is primarily a news piece with a focus on three of a possible multitude of issues. The intention is not to provide a complete review of the growing academic literature in the greenhouse gas accounting field, nor to elaborate on the entire array of challenges presented by greenhouse gas accounting for a range of industries. Further, the paper does not intend to discuss climate change science or emissions trading in any detail.Originality/valueWhilst the focus is on the Australian experience, the questions raised may be of interest to a more international audience as attempts are made to put a national framework using local measures on a global problem are commonplace.