Some organizations are getting ready for the market change that comes with new regulations. Others are getting ready for a change in the climate and want to know how to adapt. Governments and industry are challenged to comply with today’s patchwork of existing and emerging regulations designed to reduce greenhouse gas (GHG) emissions. They also must understand the implications of changes in climatic conditions and develop adaptation strategies.
While the full implications of carbon regulations remain unclear, emission reduction regulations will likely create material financial liabilities for regulated entities. In response, organizations need to strengthen their existing IT systems and business processes – or create new ones – to support reporting requirements and build data integrity. They must also assign enterprise-wide responsibility for carbon management governance and oversight.
Serving companies, federal, provincial and municipal governments, we bring a risk-based approach to developing tailored climate change responses. With a demonstrated track record in risk management, in-depth knowledge of carbon regulations and access to robust planning tools, Deloitte can help you to build carbon management capabilities, whether you are faced with carbon regulations or are participating in voluntary markets. We offer a full range of services to help you tackle the complexities and challenges presented by emerging carbon regulations, and position you to recognize and act on opportunities to build new value:
- Governance. Establish an appropriate organizational structure, with the related governance framework, policies, procedures and controls needed to manage climate change and carbon market risks.
- Compliance management. Develop an optimized carbon portfolio that aligns with your strategic goals and risk tolerances, and meets future regulatory compliance obligations.
- Risk assessment. Bridge functional and organizational silos with an enterprise risk management approach that helps you identify and manage the financial, physical, strategic, operational and other risks and opportunities related to carbon regulation and markets, and adapt to a changing climate.
- Strategy development. Develop a strategy to address the risks and opportunities resulting from climate change and carbon markets, with our scenario-based approach.
- Data management, reporting and disclosure. Set up ongoing emissions tracking, internal management reporting, compliance reporting and a disclosure strategy, with the internal controls to ensure data integrity.
- System selection and implementation. Select, implement and test your greenhouse gas (GHG) emissions monitoring and carbon transacting systems.
- Greenhouse gas emission baseline development and verification. Establish energy and GHG baselines, improvement goals, programs, reporting templates and tools and meet your regulatory reporting requirements and voluntary disclosure commitments with third-party verification of your GHG emissions data.
- Offset project verification. Conduct third-party verification of your reported emissions reductions or offset projects.
- Accounting for carbon. Develop policies and processes to account for GHG transactions and balances to support the preparation of financial statements related to GHG emissions.