PwC launches green reporting model

Want to go green, but have no idea how to demonstrate to stakeholders that its worth it?

Then you are in good company. The multitude of green accounting standards and advice is confusing and not entirely aimed at creating universal practice.

But attitudes have changed and it is now a case of whether a company should compile carbon reports, but how. Until now, there has been little or no help on this front, but advice from the Climate Disclosure Standards Board, a body of the World Economic Forum, has offered a framework outlining what companies should be including in their carbon emissions report.

PricewaterhouseCoopers has gone a step further and created what is thought to be an industry first, a reporting example based on a hypothetical IT company called Typico that shows businesses the nuts and bolts of how to construct an emissions disclosure.

The Typico report shows how a business can tackle a company’s climate change strategy in the future; the impact of climate change on the business; financial performance overview in relation to climate change; directors’ responsibilities and approval of company environmental polices; and an assurance statement.

To give a global perspective, the fictitious company has operations in the UK, US and Asia with the sample report covering UK and non-UK proposed reporting requirements.

Typico is the brainchild of Alan McGill, partner at PwC’s sustainability and climate change division. ‘There are lots of guidelines on what companies should report, but nobody is coming out with how you would report the information’ says McGill.

PwC is currently consulting with the CDSB, CBI and the UK department of environment, on guidelines for companies, which are to be released later this year.

‘This is not just a box-ticking compliance reporting model but is more principles based,’ said McGill.

Companies need more than a list of requirements added McGill. ‘Typico demonstrates how a company can link non-financial data through to the financial implications’ he said.

The reporting battle doesn’t stop with carbon. McGill also has his sights set on water usage. He hopes to adapt the Typico carbon model into a water report, or at least to incorporate that into existing frameworks.

A recent ACCA report outlined that businesses need to prioritise water in company CSR reporting as it underpins economic growth, security and can effect financial and operational objectives.

‘It shouldn’t be one way for water and another for carbon. We need to convene with standard setters globally to standardise the reporting’ McGill added.