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needed to explore how SMEs can align with evolving regulatory frameworks without
compromising their operational efficiency.

From a reporting perspective, standardized GHG reporting is essential for
ensuring comparability across companies, sectors, and regions. It enables stakeholders
to make informed decisions based on consistent and reliable GHG emissions data
(Depoers et al., 2016). Standardized reporting allows companies to track their progress
toward GHG reduction targets and demonstrate compliance with relevant policies. It
also enables companies to benchmark their performance against peers and industry
standards, holding them accountable for their environmental actions.
Understanding the distinctions among Scope 1, Scope 2, and Scope 3 emissions is

critical for comprehensive GHG reporting. Scope 1 covers direct emissions from
company operations, Scope 2 includes indirect emissions from purchased energy, and
Scope 3 includes all other indirect emissions along the value chain (World Resources
Institute & World Business Council for Sustainable Development, 2004). Accurate
reporting across these categories allows companies to allocate responsibility for
emissions appropriately and formulate effective GHG reduction strategies.

From an audit and assurance perspective, the reliability of GHG emissions data
is as important as financial data. Accurate and consistent GHG reporting relies on robust
data collection protocols and verification processes (Talbot & Boiral, 2018). Assurance
services are increasingly in demand as stakeholders seek confirmation that GHG data is
accurate and standardized (Green & Zhou, 2013). Assurance processes provide the
credibility needed to support corporate commitments to sustainability, making them
integral to future GHG reporting frameworks.

Finally, the growing reliance on automated data collection systems is critical for
improving the accuracy and efficiency of GHG reporting. Automated systems ensure
that emissions data is collected systematically across operations and processed
efficiently, providing a solid foundation for trend monitoring, target setting, and
forecasting future emissions (Dancey & Mendiluce, 2023).
4. Research results and discussion

Many professional accountants and finance professionals are new to greenhouse
gas (GHG) accounting and reporting. However, with GHG emissions disclosures
becoming an integral part of mainstream annual and financial reporting, their role is
increasingly critical in driving effective solutions for accurate and decision-useful GHG
emissions data. To ensure timely, reliable, comparable, and consistent external reporting
on GHG emissions, finance professionals must adopt accounting approaches aligned
with financial reporting standards. Robust internal controls and systems must be
established to ensure that GHG emissions disclosures are verifiable and can withstand

independent external assurance. Additionally, reliable GHG emissions information is
essential for pricing climate risks and responding to carbon pricing mechanisms, such
as direct levies, taxes, or cap-and-trade systems, which are increasingly adopted by
governments worldwide to achieve GHG emissions reductions.

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