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Australian School of Business School of Accounting

ACCT5961 ACCOUNTING FOR CLIMATE CHANGE AND SUSTAINABILITY

COURSE OUTLINE SEMESTER 2, 2011

TABLE OF CONTENTS

1. STAFF CONTACT DETAILS 1

2. COURSE DETAILS 1

2.1 Teaching Times and Locations 1 2.2 Units of Credit 1 2.3 Summary of Course 1 2.4 Course Aims and Relationship to Other Courses 2 2.5 Student Learning Outcomes 2

3. LEARNING AND TEACHING ACTIVITIES 3

3.1 Approach to Learning and Teaching in the Course 3 3.2 Learning Activities and Teaching Strategies 3

4. ASSESSMENT 4

4.1 Formal Requirements 4 4.2 Assessment Details 4

5. ACADEMIC HONESTY AND PLAGIARISM 8

6. COURSE RESOURCES 9

7. COURSE EVALUATION AND DEVELOPMENT 9

8. STUDENT RESPONSIBILITIES AND CONDUCT 9

8.1 Workload Expectations 10 8.2 Attendance 10 8.3 Student Conduct and Behaviour 10 8.4 Keeping Informed 10 8.5 Special Consideration and Supplementary Examinations 10 8.6 Occupational Health and Safety 11

9. ADDITIONAL STUDENT RESOURCES AND SUPPORT 11

COURSE AT A GLANCE – PAGE 13 ABBREVIATIONS USED IN THIS COURSE – PAGE 14 DETAILS OF SEMINARS ‐ FROM PAGE 15

ACCT5961 – Accounting for Climate Change and Sustainability 1

1. STAFF CONTACT DETAILS

Position Name Email Consultation time and location

Phone

Lecturer (Course Coordinator)

Dr Maria Balatbat

[email protected] 4‐6pm, Mondays QUAD 3061a

93855808

Lecturer Associate Professor Wendy Green

[email protected] 4‐6pm, Mondays QUAD 3111

93855805

Please note that the lecturers are available for consultation only during the weeks they are lecturing. Other times will be held by appointment only. If you have any questions on course administration, your contact is Dr Maria Balatbat at the first instance.

2. COURSE DETAILS 2.1 Teaching Times and Locations

Day Time Location

Monday 6:00 PM to 9:00 PM Law 301

2.2 Units of Credit This course carries six (6) units of credit. 2.3 Summary of Course

The Brundtland report (1987) also referred to as “Our Common Future” alerted the world to

the urgency of making progress toward economic development that could be sustained whilst

minimising the depletion of natural resources and harm to the environment. This course

explores issues related to climate change and sustainability and the implications for industry

sectors and businesses. Established and proposed policy frameworks are surveyed and

evaluated to highlight the significance of transparency and accountability in reporting

economic, environmental and social performance. The current state and trends in accounting

and reporting for carbon emissions in regulated and voluntary setting will be covered,

including the mandatory reporting requirements in Australia under the National Greenhouse

and Energy Reporting Act 2007 (Cth) (NGER Act). An overview and assessment of the current

practices in assurance for sustainability reports and greenhouse gas disclosures will also be

covered.


2.4 Course Aims and Relationship to Other Courses

2.4.1 Course Aims The primary objectives of the course are to provide students with:

awareness and understanding of issues related to climate change and sustainability and

the opportunities/challenges it presents to businesses;

awareness and understanding of various voluntary and mandatory reporting frameworks and how these initiatives aim to address climate change and sustainable development issues;

awareness and assessment of the likely impacts of regulatory responses to climate change (i.e. NGER Act); and,

awareness and understanding of the need to have sustainability and GHG reports certified by a third party.

2.4.2 Relationship to Other Courses This course is:

an elective unit available to any Master courses offered in the Australian School of Business;

an elective unit in the Master of Environmental Management (MEM); and may be made available in other programmes. As a stand alone course, this subject requires no prior knowledge of the science or public policy aspects of climate change.

2.5 Student Learning Outcomes

This course is intended to extend your knowledge by examining particular issues in accounting and reporting for climate change and sustainability. By the end of this course, students should be able to:

LO1. identify climate change and sustainability issues and their implications for businesses.

LO2. articulate understanding of mandatory and voluntary and reporting frameworks on sustainability and be able to identify the costs and benefits of these initiatives;

LO3. understand and articulate the requirements of the National Greenhouse and Energy Reporting (NGER) Act; and,

LO4. understand the role of assurance in sustainability reporting and GHG reporting.


2.5.1 Graduate Attributes

In addition to the above learning outcomes, this course also contributes to your development of the following Australian School of Business Graduate Attributes, which are the qualities, skills and understandings we want you to have by the completion of your degree.

Course Learning Outcomes

ASB Graduate Attributes

1, 2, 3, & 4 1. Critical thinking and problem solving

1, 2, 3, & 4 2. Communication

1, 2, 3, & 4 3. Teamwork and leadership

1, 2, 3, & 4 4. Social, ethical and global perspectives

1, 2, 3, & 4 5. In‐depth engagement with relevant disciplinary knowledge 1, 2, 3, & 4 6. Professional skills

3. LEARNING AND TEACHING ACTIVITIES 3.1 Approach to Learning and Teaching in the Course Students should commit to co‐learning with instructors, peers and guest lecturers to develop awareness and understanding of the developing issues related to climate change and sustainability. This requires students to read the assigned materials before class and contribute and participate in the class discussions. Given the breadth of disciplines involved in understanding the phenomenon of climate change and its effect on sustainability, it is expected that there will be a myriad of materials available for curious minds. Although the course covers limited parts of the materials available, students should still expect this course to be reading intensive. Students should learn to skim read the suggested reading materials. All the materials are available in the course website (blackboard) and students may print them at their leisure, when (and if) needed. 3.2 Learning Activities and Teaching Strategies The course consists of weekly three‐hour classes. In most classes, the format will include the following activities (not necessarily in this order):

Lecture and class discussion

In‐class exercises

Guest lecturers in selected weeks

Case study and group discussion in selected weeks

Formal presentation of a comprehensive case study At university, the focus is on your self‐directed search for knowledge. Reading materials, lectures, presentations by practitioners, assessments and other resources are provided to help you learn. It is up to you to choose how much work you do in each part of the course: preparing for classes; attempting assigned questions; completing assignments; studying for


exams; or seeking assistance from peers or teaching staff. You must choose an approach that best suits your learning style and goals in this course. The aim is to provide you with a flexible but directed learning approach.

The fundamental approach to learning in this course can be summarised in the following statements:

Understand rather than Memorise Take responsibility for learning rather than Blame others for failure

Explore and test ideas rather than Limit yourself to facts Work collaboratively with others rather than Compete with peers

Enjoy the experience and you cannot fail1

4. ASSESSMENT 4.1 Formal Requirements To pass this course you must achieve a composite mark of at least 50. All students must attempt all components of the course and obtain a satisfactory mark.

4.2 Assessment Details2

1 Game, A. and A. Metcalfe, 2003, The First Year Experience, Federation Press, Sydney. 2 This assessment was revised on 26 July 2010.

Assessment Task Weighting

Learning Outcome(s) Assessed

ASB Graduate Attributes Assessed

Length Coverage

Due date

Individual Assessment – Essay on a sustainability report

20% 1, 2 & 4 1, 2, 4, 5 and6

One‐page poster and one page summary

Week 1 to Week 4

Week 56 pm 15 August 2011

Comprehensive Case Study Witten Report (W) and Presentation (P)

20% (W) 10% (P)

1, 2, 3 & 4 1 to 6 3000 words (W) 15‐min (P)

(See details below)

Week 96 pm 19 Sep 2011

Final Exam – Open Book

40% 1, 2, 3 & 4 1, 2, 4, 5 and6

Three hours

Week 1 to Week 12

TBA

Class Participation 10% 1, 2, 3 & 4 1, 2, 3, 4 and6

Week 1 to Week 12


Individual Essay (20%)

In Week 2, each student will be assigned a sustainability report to peruse and will be required to submit a two‐page essay addressing the following tasks:

1. Identify three (3) initiatives your assigned company has in place to address and mitigate climate change as indicated in their stand alone sustainability report. Describe each initiative and evaluate whether your assigned company was proactive or reactive in introducing each initiative. Refer to Buhr (2007) for a better understanding of the difference between proactive or reactive actions by companies with respect to corporate social responsibility reporting.

2. Assess each initiative highlighting its weaknesses and/or strengths.

3. Recommend at least two improvements on the current state of the sustainability report. In responding to this issue, you may limit your scope to the initiatives that you cover or comment on the entire sustainability report. Your recommendations should be applicable to your assigned company.

This report is due 6 pm on 15 August 2011, by e‐mailing your submission as an attachment to Dr Maria Balatbat ([email protected]). Your file attachment should be in the form of zxxxxxxx_ACCT5961.pdf/.doc.

The submission will be assessed as follows:

Assessment Criteria

Marks allocated

Identification of initiatives and quality of discussion (i.e. whether this is proactive or reactive response)

10

Evaluation of strengths and/or weaknesses of each initiative

4

Suggested recommendations and its applicability to assigned company

4

Presentation and organisation 2

Total marks 20

Comprehensive Case Study (30%)

The comprehensive case study is a formal case titled “Sustainability at Millipore” prepared by the Harvard Business School (HBS). The case study is expected to develop critical thinking and problem solving skills in students. This case will also provide students the opportunity to apply the knowledge learnt from the course. The course coordinator will assign students into groups in Week 4 and distribute a copyright copy of the case to each student. As part of a copyright agreement with HBS, students are not to use this case for any other purpose except for class discussions. Students are also not authorised to make copies of the case without prior permission from HBS.

In‐class discussion of the case will be held in Week 8 and a group presentation in Week 9.

The case study is a group effort, hence students should work together for a common purpose and also take this opportunity to develop their teamwork and leadership skills. There is no peer assessment in this case study. Members of the group will be


awarded a common mark based on the quality of the written assignment and the quality of class presentation. The three main objectives of this case are: 1) To improve students’ ability to define sustainability within an organizational context by

exposing them to major sustainability frameworks and metrics and fostering the ability to distinguish sustainability issues from conventional environment, health, and safety issues;

2) To expose students to the challenges of greenhouse gas (GHG) management including

setting the scope of a GHG emissions inventory and establishing a GHG emissions reduction target; and,

3) To promote understanding of the risks as well as opportunities that relate to the voluntary

disclosure of greenhouse gas emissions.

Case requirements include: A. A written group report of no more than 3,000 words (approximately 5 pages) covering

Questions i. to v. below:

i. How should Millipore focus its Sustainability Initiative? How should David Newman measure success?

ii. Going forward, how should Millipore prioritize projects for the Sustainability Initiative?

iii. What factors should Millipore consider in setting its next greenhouse gas reduction target? Recall that key parameters include choosing between absolute and relative reduction, a percentage reduction level, its duration, and the scope of emissions covered.

iv. Considering the pros and cons, should Millipore purchase carbon offsets as part of its strategy to meet its greenhouse gas reduction objectives?

v. What changes, if any, would you recommend to Chairman, CEO, and President Martin Madaus to improve the effectiveness and/or efficiency of Millipore’s Sustainability Initiative?

Appendices are excluded from the world count. Remember the report will be assessed according to content and how the report addresses the questions (not the length of the report).

B. A 15‐minute group presentation on a question (taken from i. to v. above) that will be allocated by the lecturer in Week 8.


This Case Study mark is worth 30% of which 20% is allocated to the written report and the remaining 10% to the group presentation.

Assessment Criteria Marks allocated

Technical Component of written report Demonstrates ability to address all questions Clarity, conciseness of and quality of responses to

each question Concise (ie. not repetitive) Report is well structured and cohesive

15

Presentation and organisation of written report Report has a summary and conclusion. Report is within word limit (i.e. 3,000 words). Report is well written (i.e. careful with use of

grammar and no spelling errors). Report is appropriately referenced.

5

Group presentation

Organisation and participation of all group members

Use of visuals (e.g. powerpoint, poster, etc) Speaking to the audience and not from notes Within time limit

10

Total marks 30

Class participation (10%)

Class participation will be assessed by all lecturers involved in the course and a consensus mark will be the determined at the end of the session. This component will be assessed based on the quality of questions and comments raised during class by students. Final exam ‐ open notes (40%) This component is worth 40% of the total marks available for this course. The exam is of three hour duration with a combination of multiple choice questions and short answer questions. It is an open notes exam and students are allowed to bring their written summaries during this exam. However, laptaps, mobile phones and other forms of electronic communication are all prohibited exam materials.


5. ACADEMIC HONESTY AND PLAGIARISM

The University regards plagiarism as a form of academic misconduct, and has very strict rules regarding plagiarism. For full information regarding policies, penalties and information to help you avoid plagiarism see:

http://www.lc.unsw.edu.au/plagiarism/index.html

as well as the guidelines in the online ELISE Plus tutorial for all new UNSW students:

http://info.library.unsw.edu.au/skills/tutorials/InfoSkills/index.htm.

Plagiarism is the presentation of the thoughts or work of another as one’s own.*Examples include:

direct duplication of the thoughts or work of another, including by copying work, or knowingly permitting it to be copied. This includes copying material, ideas or concepts from a book, article, report or other written document (whether published or unpublished), composition, artwork, design, drawing, circuitry, computer program or software, web site, Internet, other electronic resource, or another person’s assignment without appropriate acknowledgement;

paraphrasing another person’s work with very minor changes keeping the meaning, form and/or progression of ideas of the original;

piecing together sections of the work of others into a new whole;

presenting an assessment item as independent work when it has been produced in whole or part in collusion with other people, for example, another student or a tutor; and,

claiming credit for a proportion a work contributed to a group assessment item that is greater than that actually contributed.†

Submitting an assessment item that has already been submitted for academic credit elsewhere may also be considered plagiarism. The inclusion of the thoughts or work of another with attribution appropriate to the academic discipline does not amount to plagiarism. Students are reminded of their Rights and Responsibilities in respect of plagiarism, as set out in the University Undergraduate and Postgraduate Handbooks, and are encouraged to seek advice from academic staff whenever necessary to ensure they avoid plagiarism in all its forms. The Learning Centre website is the central University online resource for staff and student information on plagiarism and academic honesty. It can be located at: www.lc.unsw.edu.au/plagiarism The Learning Centre also provides substantial educational written materials, workshops, and tutorials to aid students, for example, in:

correct referencing practices;

paraphrasing, summarising, essay writing, and time management;

appropriate use of, and attribution for, a range of materials including text, images, formulae and concepts.

Individual assistance is available on request from The Learning Centre. Students are also reminded that careful time management is an important part of study and one of the identified causes of plagiarism is poor time management. Students should allow sufficient time for research, drafting, and the proper referencing of sources in preparing all assessment items. * Based on that proposed to the University of Newcastle by the St James Ethics Centre. Used with kind permission from the University of Newcastle † Adapted with kind permission from the University of Melbourne.


6. COURSE RESOURCES

Reading materials used are listed in the weekly seminar schedule of this course outline. Some of these materials are available from the course website (blackboard) but other materials may need to be downloaded from other websites as indicated. Handouts will also be distributed during the seminar as appropriate.

Useful reading references:

Smith, M., K. Hargroves, and C. Desha 2010, Cents and Sustainability Securing Our Common Future by Decoupling Economic Growth from Environmental Pressures, Earthscan, London.

www.ipcc.ch

Sustainability, Accounting and Accountability editors J. Unerman, J. Bebbington, J. and B O’Dywer, Routledge, London and New York

Accounting for Sustainability: Practical Insights editors A. Hopwood, J. Unerman, and J. Fries, Earthscan, London and Washington D.C.

Useful websites: www.ipcc.ch

http://www.globalreporting.org

http://www.sustainability.com

www.accsr.com.au

www.ethics.org.au

https://www.cdproject.net

http://www.accountingforsustainability.org

http://www.ifac.org

7. COURSE EVALUATION AND DEVELOPMENT

This course is being offered for the first time this session in the Australian School of Business and is expected to develop in time with international and national developments. As a major stakeholder, your feedback is important and you will be able to contribute to this process by participating in UNSW's Course and Teaching Evaluation and Improvement (CATEI) Process later in the semester.

8. STUDENT RESPONSIBILITIES AND CONDUCT Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed. Information and policies on these topics can be found in the ‘A‐Z Student Guide’: https://my.unsw.edu.au/student/atoz/ABC.html. See, especially, information on ‘Attendance and Absence’, ‘Academic Misconduct’, ‘Assessment Information’, ‘Examinations’, ‘Special Consideration’, ‘Student Responsibilities’, ‘Workload’ and policies such as ‘Occupational Health and Safety’.


8.1 Workload Expectations

It is expected that you will spend at least 10 hours per week studying this course. This time should be made up of 3 hours attending class and 7 hours reading, researching, and working on exercise questions and problems. In periods where you need to complete the case study or prepare for examinations, the workload may be greater.

Over‐commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

8.2 Attendance You are expected to regularly attend classes. These form an integrated presentation of topics, with each week drawing and building upon the work of previous weeks. Failing to keep up to date with the material will place you at a significant disadvantage.

You should consult the lecturer if you are to be absent for an extended period of time.

8.3 Student Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. This includes prompt arrival at classes and avoidance of disruptive behaviour. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class. More information on student conduct is available at: www.my.unsw.edu.au.

8.4 Keeping Informed

You should take note of all announcements made in class or on the course web site. From time to time, the University will send important announcements to your university e‐mail address without providing you with a paper copy. You will be deemed to have received these announcements.

8.5 Special Consideration and Supplementary Examinations The School of Accounting follows the UNSW policy and process for Special Consideration (see https://my.unsw.edu.au/student/atoz/SpecialConsideration.html).

Specifically:

Applications for special consideration (including supplementary examinations) must go through UNSW Central Administration (within 3 working days of the assessment to which it refers) – applications will not be accepted by staff in the School of Accounting;

Applying for special consideration does not automatically mean that you will be granted additional assessment or that you will be awarded an amended result;


If you are making an application for special consideration (through UNSW Central Administration) please send details of your special consideration application to the Lecturer‐in‐Charge;

Notification of supplementary exams will be sent via email only, by the Lecturer‐in‐Charge of the course. Please do not contact the School Office.

Further information is also available on the ASB website (Current Students/Help and Support/Policies and Guidelines for Current Students).

Note that it is university policy to advise the granting of supplementary exams via your student email address (for example: [email protected]). No other notification will be given. So it is very important to check your student email account to determine if you have been granted the opportunity to sit a supplementary exam. Any other email address you may have, such as Gmail, Hotmail, Ozemail, Optusnet, or Yahoo, will not be used for these notifications. Notification by letter in the post will also not occur. Normally, an email about the supplementary is sent before you can access your official results for the session. 8.6 Occupational Health and Safety UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others. For more information, see https://my.unsw.edu.au/student/atoz/OccupationalHealth.html.

9. ADDITIONAL STUDENT RESOURCES AND SUPPORT

The University and the ASB provide a wide range of support services for students, including:

ASB Education Development Unit (EDU) (www.business.unsw.edu.au/edu) Academic writing, study skills and maths support specifically for ASB students. Services include workshops, online and printed resources, and individual consultations. EDU Office: Room GO7, Ground Floor, ASB Building (opposite Student Centre); Ph: 9385 5584; Email: [email protected]

Capturing the Student Voice: An ASB website enabling students to comment on any aspect of their learning experience in the ASB. To find out more, go to the Current Students/Resources/Student Feedback page here.

Blackboard eLearning Support: For online help using Blackboard, follow the links from www.elearning.unsw.edu.au to UNSW Blackboard Support / Support for Students. For technical support, email: [email protected]; ph: 9385 1333

UNSW Learning Centre (www.lc.unsw.edu.au ) Academic skills support services, including workshops and resources, for all UNSW students. See website for details.

Library training and search support services: http://info.library.unsw.edu.au/web/services/services.html

UNSW IT Service Desk: Technical support for problems logging in to websites, downloading documents etc. Library, Level 2; Ph: 9385 1333. Website: www.its.unsw.edu.au/support/support_home.html

UNSW Counselling Service (http://www.counselling.unsw.edu.au)


Free, confidential service for problems of a personal or academic nature; and workshops on study issues such as ‘Coping With Stress’ and ‘Procrastination’. Office: Level 2, Quadrangle East Wing ; Ph: 9385 5418

Student Equity & Disabilities Unit (http://www.studentequity.unsw.edu.au) Advice regarding equity and diversity issues, and support for students who have a disability or disadvantage that interferes with their learning. Office: Ground Floor, John Goodsell Building; Ph: 9385 4734


COURSE AT A GLANCE

Week # (Lecturer) Date

Seminar topic/Activity

Week 1 (MB) 18 July

Introduction to climate change and sustainability and its implications for accounting and reporting

Week 2 (MB) 25 July

Sustainability reporting – The case of the Global Reporting Initiative (GRI) Guest Speaker: TBA

Week 3 (MB) 1 Aug

The Greenhouse Gas Protocol (A corporate and reporting standard) Guest Speaker: TBA

Week 4 (MB) 8 Aug

Socially Responsible Investing: Carbon Disclosure Project and Other Disclosures Guest Speaker: TBA

Week 5 (WG) 15 Aug

Reporting requirements under the NGER ActIndividual Essay due before 6pm 15 August 2011 (20%)

Week 6 (WG) 22 Aug

NGER Act: Commercial Implications and Client AdviceGuest Speakers and Panel Discussion

Week 7 (MB) 29 Aug

Accounting and reporting issues on carbon emission permits

3‐11 Sep Midsession Break

Week 8 (MB/WG) 12 Sep

In‐class discussion of comprehensive case study: Sustainability at Millipore

Week 9 19 Sep

Case study assignment due and class presentation (30%)

Week 10 (WG) 26 Sep

GHG Assurance in Australia – NGER Act requirementsGuest Speaker: TBA

Week 11‐12 (WG) 3 & 10 Oct

Sustainability and GHG Assurance (International framework) Guest Speaker: TBA


Abbreviations used in this course:

AASB Australian Accounting Standards Board

AAUs Allocated Amount Units

BAU Business as usual

CDLI Carbon Disclosure Leadership Index

CDP Carbon Disclosure Project

CDM Clean Development Mechanism

CDP Carbon Disclosure Project

CDSB Climate Disclosure Standards Board

CEPs Carbon Emission Permits

CERs Certified Emission Reductions

CEO Chief Executive Officer

CFO Chief Financial Officer

CO2 Carbon dioxide

CO2‐e Carbon dioxide equivalent

CPRS Carbon Pollution Reduction Scheme

CSR Corporate Social Responsibility

DCC Department of Climate Change

DCCEE Department of Climate Change Energy Efficiency

ERUs Emission Reduction Units

ETS Emissions Trading Scheme

EU European Union

GEDO Greenhouse and Energy Data Officer

GHG Greenhouse Gas

GRI Global Reporting Initiative

FASB Financial Accounting Standards Board

IASB International Accounting Standards Board

IAASB International Auditing and Assurance Standard Board

IFRIC International Financial Reporting and Interpretations Committee

IPCC International Panel for Climate Change

IR Integrated Reporting

IIRC International Integrated Reporting Committee

ISO International Standards Organization

JI Joint Implementation

MRET Mandatory Renewable Energy Target

NGER National Greenhouse and Energy Reporting

P&L Profit and Loss

R&D Research and Development

RECs Renewable Energy Certificates

SRR Social Responsibility Reporting

SIGMA Sustainability Integrated Guidelines for Management

TBLR Triple Bottom Line Reporting

UNIPCC United Nations International Panel for Climate Change

WBCSD World Business Council for Sustainable Development

WRI World Research Institute


Seminar Week 1 ‐ Introduction to Climate Change and Sustainability and its Implications for Accounting and Reporting

Learning Objectives:

a) Awareness of issues on climate change and sustainability; b) Understand opportunities and challenges that face businesses; c) Awareness of international initiatives to address climate change and sustainability

issues; d) Understand what corporate social responsibility reporting is all about; and e) Identify the potential benefits and challenges of producing a sustainability report.

Pre reading: ‐ Krugman, P. 2010, ‘Building a Green Economy’, The New York Times, 4 November

2010, available at: http://www.conservationrealestate.org/images/Building%20a%20Green%20Economy_20100415_103824.pdf

‐ Deegan, C. 2010, ‘Accounting for corporate social responsibility’, in Australian Financial Accounting, McGraw Hill, Sydney, pp 1180‐1245.

Additional references/resources:

‐ PricewaterhouseCoopers and Institute of Chartered Accountants, 2010, Business briefing series, 20 Issues on the business implications of carbon cost, PwC and ICAA, Sydney.

‐ PricewaterhouseCoopers, 2009, Carbon ready or not … A survey of Australian business leaders’ preparedness for the carbon‐constrained economy and the CPRS, PwC, Sydney.

‐ www.ipcc.ch

Seminar content: 1. Introduction/Summary of the course 2. Overview of climate change and its implications to businesses 3. What is corporate social responsibility? 4. Current trends and practices in corporate social responsibility(CSR) reporting 5. Benefits and challenges of preparing CSR reports 6. Initiatives to tackle the challenges of climate change 7. In‐class exercises

Class questions:

1. What are UNIPCC’s key findings that led the world to address the climate change and sustainability issues?

2. Why should businesses care about climate change and sustainability issues? 3. What is corporate social responsibility? 4. Examine how climate change and sustainability issues could potentially affect firm

value?


Seminar Week 2 Reporting for Corporate Social Responsibility – The case of Global Reporting Initiative (GRI) Learning Objectives:

a) Gain knowledge of a sustainability reporting framework, in this case the Global Reporting Initiative;

b) Understand obligatory components of a GRI (Generation 3) report; c) Understand key steps in the development of sustainable report under GRI; d) Awareness of other guidance on sustainability reporting e) Awareness of current issues/developments in sustainability reporting particularly the

introduction of one report in the form of integrated reporting. Pre reading:

‐ Buhr, N. 2007, ‘Histories of and rationales for sustainability reporting’, in Sustainability, Accounting and Accountability eds J. Unerman, J. Bebbington, J. and B O’Dywer, Routledge, London and New York, pp 57‐69.

‐ Adams C. and V. Narayan, ‘The ‘stardization’ of sustainability reports’, in Sustainability, Accounting and Accountability eds J. Unerman, J. Bebbington, J. and B O’Dywer, Routledge, London and New York,, pp 70‐85.

‐ Integrated Reporting Committee of South Africa, Framework for Integrated Reporting Discussion paper,25 January 2011.

‐ King Code of Governance Principles for South Africa 2009. ‐ KPMG. 2008. KPMG International survey of corporate social responsibility reporting.

London. Additional readings/resources:

‐ Global Reporting Initiative, 2006, Sustainability Reporting Guidelines, Version 3.0., GRI Amsterdam.

‐ Global Reporting Initiative, 2005, GRI Boundary Protocol, Version 3.0., GRI, Amsterdam.

‐ Case Illustration ‐ Corporate Express Australia Limited, 31 January 2010 Seminar content:

1. Introduction to sustainability reports 2. Benefits and challenges of producing a sustainability report 3. Brief on the GRI Reporting Framework 4. Discussion of the GRI boundary protocol 5. Case Illustration of a sustainability report: Corporate Express Australia Limited, 31

January 2010 6. Future of sustainability reporting: An introduction to integrated reporting 7. In‐class exercises

Class questions:

1. What is the purpose of a sustainability report? 2. Why do companies prepare a stand‐alone sustainability report? 3. What disclosures are typically included in a sustainability report? 4. Consider the costs and benefits of preparing a sustainability report.


Seminar Week 3

The Greenhouse Gas Protocol (A corporate and reporting standard) Learning Objectives:

a) Introduction to the key features of The Greenhouse Gas Protocol (Protocol); b) Understanding of the elements covered in the Protocol; and c) Awareness of issues that arise in the application of the Protocol. d) Case Study: Corporate GHG Accounting: Carbon Footprint Analysis

Pre reading:

‐ World Business Council for Sustainable Development and World Research Institute, 2004, The Greenhouse Gas Protocol, A Corporate Accounting and Reporting Standard, WBCSD and WRI, Geneva and Washington.

‐ Teichman W., 2009. A case study on Corporate GHG Accounting: Carbon Footprint Analysis, Darden Business Publishing (UVA‐ENT‐0113)

Additional readings/resources:

‐ Lighl, P., Carlson, D. and the David Suzuki Foundation. 2010, Doing business in a new climate: A guide to measuring, reducing and offsetting greenhouse gas emissions, Earthscan Ltd., London and Washington.

‐ www.wbcsd.org Seminar content:

1. Introduction to GHG Protocol – its purpose and applications 2. Objectives of the Protocol 3. Guidance in developing a verifiable GHG inventory 4. Advantages and challenges in using the Protocol

Class questions:

1. What is the GHG Protocol? 2. Identify the parties involved in the development the GHG Protocol? 3. Who are likely to benefit from the use of the GHG Protocol? 4. What aspects of accounting and reporting for GHG emissions are covered in the

Protocol?

Seminar Week 4 Socially Responsible Investing: The case of Carbon Disclosure Project and Other Disclosures Learning Objectives:

a) Awareness of what social responsibility is all about; b) Awareness of the purpose and objectives of the carbon disclosure project (CDP); c) Gain knowledge of the disclosures contained in CDP; d) Awareness of trends and quality of disclosures under the CDP; and e) Understand the benefits of participating in socially responsible activities.

Pre reading:

‐ Stanny, E. 2009, ‘Voluntary Disclosures by US firms to the Carbon Disclosure Project’, Working Paper, School of Business Economic, Sonoma University.


‐ Kolk, A., Levy, D. and J Pinske (2008), “Corporate Responses in an Emerging Climate Regime: The institutionalization and Commensuration of Carbon Disclosure”, European Accounting Review 17, 719‐745.

‐ Carbon Disclosure Project, 2009, Carbon Disclosure Project 2009, London. (pp 173‐183 for list of questions asked in the CDP survey)


‐ https://www.cdproject.net (earlier CDP reports i.e. 2004 to 2008) Seminar content:

1. Introduction to socially responsible investing 2. History and background and purpose of CDP 3. Benefits of participating in CDP 4. Disclosures included in the CDP report 5. Link between CDP and capital markets

Lessons learnt and improvements to be made Class questions:

1. What is your understanding of a socially responsible corporation? 2. What is the carbon disclosure project (CDP)? 3. What are the objectives of the CDP? 4. What aspects of climate change issues are covered by CDP? 5. Why do companies participate in this survey? (Consider the implications of not

participating in this survey.) 6. What role do institutional investors play in the participation of companies in CDP?

Seminar Week 5 Reporting requirements under the NGER Act


a) Overview of the policy context in which the NGER Act is situated. b) Understand how the NGER Act and subordinate legislation fit together under the NGER

framework. c) Gain knowledge of the reporting requirements under the NGER Act. d) Gain knowledge of the enforcement and administration provisions under the NGER

Act.

Pre reading: ‐ Hodgkinson, D. and Garner, R. (2008) Global Climate Change: Australian Law and

Policy. LexisNexis Butterworths: Chatswood, NSW, pp. 70‐93 (hand‐out to be provided in previous class).

‐ National Greenhouse and Energy Reporting Act 2007 (Cth) (students to print). Available at: http://www.comlaw.gov.au/comlaw/Legislation/Act1.nsf/0/8bfe5e5b013ef8a3ca25736a00128de9?OpenDocument&Click= (accessed 15 June 2010).


Additional readings/resources: ‐ Australian Government Attorney‐General’s Department. (2008) ‘National Greenhouse

and Energy Reporting (Measurement) Determination 2008’, available at: http://www.comlaw.gov.au/ComLaw/Legislation/LegislativeInstrument1.nsf/asmade%5Cbyid/F9F9C00E4F78EC03CA2575E000014EB6?OpenDocument (accessed 15 June 2010).

‐ Australian Government Attorney‐General’s Department. (2009) ‘National Greenhouse and Energy Reporting Regulations 2009 (No. 2)’, available at: http://www.comlaw.gov.au/comlaw/Legislation/LegislativeInstrument1.nsf/0/D3545AFA7700E42ECA2576860005C2F0?OpenDocument (accessed 15 June 2010).

‐ Australian Government Department of Climate Change. (2009) ‘Compliance and Enforcement Policy’, available at: http://www.nger.com.au/assets/pdfs/NGER‐Compliance‐and‐Enforcement.pdf (accessed 15 June 2010).

‐ Australian Government Department of Climate Change. (2008) ‘National Greenhouse and Energy Reporting System – Regulations Policy Paper’, available at: http://www.climatechange.gov.au/government/submissions/~/media/publications/greenhouse‐report/nger‐regs‐policypaper‐pdf.ashx (accessed 15 June 2010).

‐ Australian Government Department of Climate Change. (2008) ‘National Greenhouse and Energy Reporting Guidelines’, available at: http://www.climatechange.gov.au/government/initiatives/~/media/publications/greenhouse‐report/nger‐reporting‐guidelines.ashx (accessed 15 June 2010).

Seminar content:

1. The evolving climate change policy context in Australia. 2. The NGER Act aims, scope and key terms. 3. NGER Act Reporting requirements. 4. Enforcement of the NGER Act. 5. Administration of the NGER Act and the role of GEDO.

Class questions:

1. What steps do companies need to take to determine if they need to report under the NGER Act?

2. What is the significance of the tiered measurement system adopted under the NGER Act?

3. What are the consequences for a company and for CEOs of failure to comply with the requirements of the NGER Act?

4. What is the role of GEDO in the administration of the NGER Act?

Seminar Week 6 NGER Act: Commercial Implications and Client Advice

Guest Speakers and Panel Discussion Learning objectives:

a) Understand the commercial implications of the NGER framework for companies. b) Class exercise – checklist for achieving NGER Act reporting compliance.

Pre reading:


‐ de Wit, E. and Coonan, E. (2008) ‘Corporate reporting of greenhouse gas emissions: Is it voluntary or mandatory?’, Australian Resources and Energy Law Journal, 27, pp. 72‐85 (hand‐out to be provided in previous class). Kemp, S. (2008) ‘Reporting on energy’, Charter, 79(5), pp. 62‐63 (hand‐out to be provided in previous class).

Additional readings/resources: ‐ Fernandez, H. (2008) ‘Five steps to a green accounting plan’, Intheblack, 78(10), 66‐67

(hand‐out to be provided in previous class). Seminar content:

1. Commercial implications of the NGER Act. 2. Class exercise – client advice.

Class questions:

1. What are the commercial implications of the NGER framework for companies? 2. What types of issues do companies need to be abreast of in order to achieve

compliance with the reporting requirements under the NGER Act?

Seminar Week 7 Accounting and Reporting Issues on Carbon Emission Permits


a) Understand how emission permits are accounted for and reported in the financial statements;

b) Explore implications of current accounting treatments for emission permits; c) Awareness of current developments in the international accounting standard setting;

and, d) Awareness of current trends in reporting practices: A case of UK EUETS

Pre reading:

‐ PricewaterhouseCoopers (PwC) and International Emissions Trading Association (IETA), 2007. Trouble‐entry Accounting: Uncertainty in Accounting for the EU Emissions Trading Scheme and Certified Emission Reductions. Available at: www.ukmediacentre.pwc.com/imagelibrary/downloadMedia.asp?MediaDetailsID=899

‐ Engels, A. (2008). “The European Emissions Trading Scheme: An exploratory study of how companies learn to account for carbon”, Accounting, Organizations and Society 34, pp 488‐498.

‐ Bebbington, J. and C. Larrinaga‐Gonzalez. 2008, ‘Carbon Trading: Accounting and Reporting Issues’, European Accounting Review 17, 697‐717.

‐ Lovell H, T. Aguiar, J. Bebbington and C. Larringa‐Gonzalez, 2010, Accounting for Carbon, ACCA Research report No. 122.


‐ Balatbat, M. (2010). “Voluntary disclosure of accounting policies for the treatment of carbon emission permits: The UK EUETS case”, Working Paper, Australian School of Business

‐ International Financial Reporting Interpretations Committee, 2004. IFRIC 3 ‐ Emission rights, Withdrawn June 2005. International Accounting Standards Board.

‐ www.iasb.org


Seminar content:

1. Key features of cap‐and‐trade scheme relevant to accounting 2. Status of current accounting regulations on carbon emissions permits 3. Discussion of various approaches of accounting for carbon emissions permits 4. Issues and current in accounting for climate change 5. Current trends in reporting and disclosure practices: A case of UK EUETS

Class questions:

1. What is a cap‐and‐trade scheme? 2. Describe the features of a cap‐and trade‐scheme. 3. What are the implications of a cap‐and‐trade scheme to financial reporting? For

example, why do businesses need to consider this issue? 4. What opportunities are available to businesses if Australia adopts an emissions trading

scheme?

Midsession Break 3 ‐11 September

Seminar Week 8 In‐class discussion of comprehensive Case Study: Sustainability at Millipore


a) Improve ability to understand sustainability issues in an organizational context; b) Distinguish sustainability issues from conventional environment, health and safety

issues; c) Experience the challenges of GHG management; and d) Promote understanding of risks as well as opportunities that attend the voluntary

disclosure of GHG emissions. Pre reading:

‐ Toffel, M. W. and Lee, K., 2009, “Sustainability at Millipore”, Harvard Business School Case Study, Harvard Business School Publishing, Boston.

Seminar Activity:

1. Introduction (10 minutes) 2. Defining and Differentiating Sustainability from Conventional EHS (20‐30 minutes) 3. Greenhouse Gas Emissions: Inventory, Target, and Disclosure (35‐45 minutes) 4. External Analysis and Action Plan (20 minutes) 5. Reflections (10‐15 minutes) 6. Wrap‐up (5 minutes)

Seminar Week 9 Case Study Class Presentations


Seminar Week 10 GHG Assurance in Australia – NGER requirements

Learning objectives:

a) Gain knowledge of the assurance provisions under NGER Act. b) Gain an understanding of the auditor verification requirements under the NGER.

Pre reading:

‐ NGER Auditor Determination ‐ NGER Auditor Registration Instrument ‐ Green W., R. Simnett, and A. Huggins. 2009. “The Expertise Required for Greenhouse

Gas Assurance Engagements: Lessons to be Learned from Existing Schemes and Standards.” Working Paper, Eighth Australasian Conference on Social and Environmental Accounting Research in Christchurch, New Zealand, 6‐8 December (hand‐out to be provided in previous class).

Seminar content: 1. Revision of the NGER legislative framework and an overview of relevant legislation

pertaining to auditors. 2. Requirements relating to greenhouse and energy auditors under NGER

a. Requirements relating to lead auditors b. Requirements relating to all team members c. Requirements relating to assurance firms d. Government oversight of the registration process

3. Comparison of Australian requirements and those from other schemes throughout the world

Class questions:

1. What do you consider are the key considerations for companies considering undertaking GHG assurance engagements (e.g. those resulting from the NGER regulations)

2. What are the key issues faced by practitioners in complying with the NGER requirements?

3. What practical considerations are there in managing the need for both subject matter and technical experts on GHG engagements?

Seminar Week 11 and Week 12

Sustainability and GHG Assurance Learning Objectives:

a) Overview of sustainability and GHG assurance. b) Understand the framework for undertaking sustainability and GHG assurance

engagements c) Understand the process for the development of, and the current status of the

International GHG Assurance Standard. d) Gain knowledge of the assurance requirements under the NGER Act.


Pre reading: ‐ Simnett R., A. Huggins and M. Nugent, (2009) “Developing an International Assurance

Statement on Greenhouse Gas Statements”, Accounting Horizons, 23 (4) December, 347‐363. (hand‐out to be provided in previous class).

‐ International Auditing and Assurance Standard Board (IAASB). 2009a. “Consultation paper. Assurance on a Greenhouse Gas Statement.” Pages 1‐20, Available at http://www.ifac.org/Guidance/EXD‐Details.php?EDID=0132 (students to print pages 1‐20).

‐ Green W., R. Simnett, and A. Huggins. 2009. “The Expertise Required for Greenhouse Gas Assurance Engagements: Lessons to be Learned from Existing Schemes and Standards.” Working Paper, Eighth Australasian Conference on Social and Environmental Accounting Research in Christchurch, New Zealand, 6‐8 December (hand‐out to be provided in previous class).


‐ Simnett R., W. Green, A. Huggins, Pflugrath G, Stringer A, Getting the World on Board, INTHEBLACK October 46‐49,

‐ Simnett R., W. Green, and A. Huggins, GHG Emissions Standard on its Way, Charter, October, 64‐66.

‐ Submission to IAASB GHG Assurance Standard Consultation Process by W. Green and

A. Huggins February 2010, available at http://www.ifac.org/Guidance/EXD‐

Details.php?EDID=0132

Seminar content:

1. The global demand for sustainability and GHG assurance. 2. Overview of the benefits of assurance. 3. Existing Assurance Frameworks

– IAASB: ISAE 300, Draft ISAE 3410; AccountAbility: AA1000AAS; International Organisation for Standardisation: ISO Standards.

4. Current assurance practice 5. Overview of global guidance and requirements for GHG assurance providers

Class questions:

1. Why do companies have their sustainability or GHG disclosures assured? 2. What types of companies engage this work? 3. What are the key features of GHG emissions statements and their assurance? 4. What are the key issues facing standard setters in developing an assurance standard

for GHG emissions disclosures?

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