Page 305 - Ebook HTKH 2024

of financial and sustainability data, ensuring that GHG tracking informs managerial and
board-level decisions. Partnering with sustainability experts, external consultants, and

various operational departments is crucial for comprehensive data collection, business
planning, and target setting.
Risk and materiality assessments, mandated by IFRS Sustainability Disclosure
Standards and other regional regulations, are vital for GHG emissions accounting. These
assessments help pinpoint which emissions to monitor and shape climate risk
evaluations. As Scope 3 emissions often constitute the bulk of a company's GHG
footprint, assessing these emissions is essential for regulatory compliance and accurate
GHG reporting.

Finally, embedding GHG data into standard financial processes allows for
consistent reporting and helps CFOs provide key insights to audit committees regarding
judgments made during emissions calculations. Using financial control boundaries
maximizes the relevance and consistency of GHG reporting, ensuring that it is
integrated seamlessly into broader financial disclosures.
By adopting these practices, companies can enhance the reliability and accuracy

of GHG disclosures, aligning them with financial reporting standards and ensuring
compliance with emerging regulatory frameworks.
5. Conclusion
This study has emphasized the critical role that mandatory GHG emission
disclosures play in modern corporate reporting, especially for accounting and finance
professionals. As GHG reporting becomes an essential element of financial disclosures,
the integration of GHG metrics into corporate financial systems is vital for ensuring

transparency, accountability, and compliance with emerging global standards. The
research highlighted the increasing relevance of GHG disclosures in corporate valuation,
risk management, and investor decision-making processes, driven by frameworks such
as the ISSB standards, the SEC’s proposed rules, and the European Union’s ESRS.
Key research results demonstrated the necessity of standardizing GHG disclosures
to facilitate consistent, comparable, and reliable data across industries and regions. The

study also pointed out that finance professionals must adopt robust internal controls,
leverage automated data collection systems, and collaborate closely with sustainability
teams to ensure accurate GHG reporting. The findings underscored the importance of
addressing the growing demand for external assurance of GHG data to enhance the
credibility and reliability of corporate sustainability reports.
Despite these insights, the study has several limitations. First, it relies on a
qualitative literature review, which may not capture the full scope of quantitative data
needed to assess the financial impact of GHG reporting across diverse industries.

Additionally, the study primarily focuses on larger corporations with established
reporting systems, leaving a research gap regarding small and medium-sized enterprises
(SMEs) that may struggle to comply with mandatory GHG disclosures due to resource
constraints. Finally, the study did not delve into region-specific challenges

297