The Institute has called for the establishment of a global assurance framework for carbon emission disclosures to support Australian and international efforts to reduce carbon emissions. 
 
The call came in a leadership report issued last week by the Institute in association with Professor Roger Simnett, Head of Accounting at the Australian School of Business.  
 
The Institute’s Head of Audit, Andrew Stringer, said that if the legislative framework, established by the National Greenhouse and Energy Reporting Act 2007 (Act), is expected to underpin the introduction of a future Australian Emissions Trading Scheme (AETS) then it is vital that trust and credibility be built into the system from the very beginning.  
 
“The absence of a robust and rugged assurance requirement to accompany the obligation to report has the potential to impair such a trading scheme,” Mr Stringer said. 
 
Professor Simnett said that independent assurance promotes trust and confidence in disclosures that are a forerunner of, and integral part, of emissions trading schemes. Such schemes have become the preferred response of governments, regulators and business with regards to managing risk and ensuring long-term sustainability. 
 
Download the paper: The Benefits of Assuring Carbon Emission Disclosures (PDF).