Innovative Carbon Accounting

Stefan Reichelstein's recent working paper “Carbon Emission Statements: Balance Sheets and Flow Statements” tackles the challenge of insufficient corporate carbon emission disclosures.

His Carbon Accrual Accounting System adapts historical cost accounting for operating assets to create Carbon Emissions (CE) balance sheets and flow statements. These provide insights into a company's past, current, and future carbon performance. Reichelstein's approach offers a crucial tool for companies striving to quantify and improve their environmental impact. The paper signifies a leap toward transparent and standardized carbon emission reporting, propelling discussions on universally accepted accounting principles for environmental impact.