At the same time there is a very obvious and growing demand from the investment community for data on climate change that is not being met. It is easy to see why. I attended an Institute of Chartered Accountants seminar on climate change accounting yesterday. 35% of those attending made no climate related disclosures. 51% only made them in the narrative part of the accounts. That left 14% at most making any reference to climate in their figures. The biggest economic issue on the planet is not being accounted for, as yet
This is, of course, untrue.
The fuel duty escalator was imposed in order to meet “our Rio commitments”. It has added 25p a litre to petrol prices. The Stern Review amount for a carbon tax is 11p a litre.
So, the costs of climate change are there in every piece of accounting to do with transport in the UK. It’s in refinery accounts, as volume purchased has fallen as a result of the higher taxation. It’s in the accounts of every company that transports something, in the prices they pay for fuel. It’s in the accounts of every company that deals with something that has been transported, in the price they must pay for transport.
Climate change is, via those fuel duties, embedded in every price faced by anyone in the economy. And yes, accounts are made up with respect to market prices.
This is also true of all that greenery in the electricity supply system. It’s in prices, accounts are made up of prices, therefore climate change is in accounts.
The P³ wants more climate change to be in accounts. OK. So, he should want the carbon tax to apply to more things so that it is all reflected in accounts via the price mechanism.
The only problem with this is that it doesn’t provide a job for the P³ and let’s face it, grifters gotta grift.