Around the world, companies are working to achieve net-zero, and BDO is no different. But why is this an accounting issue? This week, we welcome Mary Mathews and Braham Moondi, both Partners in BDO's Accounting Advisory practice. Together, they discuss the role that accountants play in moving companies toward net-zero and best practices for approaching specific considerations along the way.
What You'll Hear In This Episode:
[1:53] Mary explains why accountants are involved in the company's work of moving toward net-zero.
[3:13] Braham reveals the financial solutions and market incentives associated with achieving net-zero targets.
[4:56] Details about sustainability-linked bonds and other lending arrangements and their link to ESG targets.
[8:02] What is a virtual power purchase agreement and what are its key issues?
[12:31] The standards associated with financial instruments don't address many issues specifically, which often adds to their complexity.
[15:50] Considerations about how such changes impact financial reporting.
[17:19] These risks impact all companies, even those not affected by securities regulations, but how do that impact disclosure and financial statements?
[20:04] Braham shares key considerations for financial tracking from an auditing perspective.
[23:51] Final key takeaways regarding handling standard accounting processes.
Mentioned:
BDO
Mary Mathews
Braham Moondi
Additional Resources:
Accounting for Going Green: How businesses are achieving net zero emissions and the financial reporting implications
