KPMG and G100
Joint Media Release

10 September 2009

Emissions reporting places new requirements on CFOs

Group of 100 and KPMG launch a road map to assist CFOs

Today, the G100 and KPMG launched a new guide to help CFOs manage the financial and reporting impacts of carbon emissions.

The guide, Managing Financial Impacts and Reporting of Carbon Emissions - A Guide for CFOs, will help prepare for the introduction of a price for carbon emissions and related reporting requirements.

Tony Reeves, National President of Group of 100, said the guide is a starting point for CFOs and their finance teams to assist in the management of the financial impacts and reporting under climate change regulations.

“As governments introduce new regulations globally in response to climate change, the responsibilities of the CFO will broaden to include new obligations essential to enable accurate measuring and monitoring of their organisation’s emissions.

“It’s time for CFOs to get fully up to speed on emissions reporting in order to overview the outputs of areas like environmental sustainability departments. For some companies carbon costs through permits or increased supplier charges will be material to the business and CFOs will be largely responsible for managing the financial and commercial impacts of buying and selling carbon permits and supply chain impacts,” he said.

KPMG’s National Partner in Charge of Sustainability, Climate Change & Water, Jennifer Westacott said the National Greenhouse and Energy Reporting Act (NGER) and the proposed Carbon Pollution Reduction Scheme (CPRS) make this a financial issue because reporting will be seen as ultimately a driver of financial data and not just as emissions data.

“It is essential that CFOs understand their obligations, what the data means for their business in terms of growth and liability, and integrate new reporting requirements under the legislation with overall company reporting.”

Ms Westacott said many Australian organisations have yet to fully understand the business complexity and practical challenges around climate change.

“CFOs have a key role to play in navigating a successful path to a low carbon economy. This includes helping their organisations assess and deal with the financial and commercial implications of placing a price on carbon emissions. This change is integral to business strategy and their actions will help set companies apart from their competitors.”

Mr Reeves said the guide is relevant to CFOs of organisations that will be required to purchase carbon pollution permits and those that will be indirectly impacted by costs passed through the supply chain.

“On a related but important issue, the G100 is a strong proponent for the introduction of an International Accounting Standard covering global emissions trading. Such a standard is necessary to provide companies certainty in their reporting,” he said.

The guide focuses on the four key actions for CFOs including understanding the organisation’s position, oversight of emissions data, managing financial impacts and overseeing reporting and assurance.

Read a copy of the Guide at www.group100.com.au and www.kpmg.com.au

Released by:

Group of 100
The Group of 100 is an organisation of chief financial officers and senior finance executives from Australia's largest business enterprises whose primary purpose is to advance Australia's financial competitiveness.

KPMG
KPMG is one of the world’s leading professional services firms and provides advisory, tax and assurance services relating to climate change and carbon emissions. Our approach focuses on helping organisations create value and competitive advantage in a low carbon economy.

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