China carbon frauds highlight need for audit
Interesting news has recently emerged of fraudulent carbon emissions reports in China, with the Ministry of Ecology and Environment calling out four companies for doctoring or drawing misleading conclusions from carbon data. These cases emerged as part of a push by the government to improve data quality as it prepares to expand its national emissions trading scheme. This issue is doubtless not unique to China, and the big question has to be how much undiscovered fraud goes on in emissions disclosures around the world, particularly as this area of reporting explodes in reach and importance.
For us, this news highlights the critical need for carefully developed systems, procedures and controls in the preparation of these disclosures and independent assurance of climate disclosures in particular. Digital disclosure and widespread dissemination that permits independent analysis by diverse users? That will complete the picture.
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