Corporate Climate Change-Related Auditing and Disclosure Practices: Are Companies Doing Enough?

This chapter explores whether the climate change-related audit and disclosure practices of corporations reflect real change in their corporate accountability practices for climate change. The growing need to deal with the threat of climate change raises a range of financial reporting and audit implications for corporations worldwide. There is evidence of companies undertaking social and environmental audit practice and disclosing information in relation to their climate change-related performance in response to the initiatives and guidelines provided by international government bodies, non-governmental organisations (NGOs) and research organisations. However, based on a review of media reports, archival documents and a case study, this chapter argues that there is limited real change in corporate action if there is no government regulation. A radical (reform based) approach, such as mandatory monitoring (compliance audit) and disclosure requirements, are necessary to ensure corporate accountability in relation to climate change.