Accounting for Risk

The document outlines how financial institutions can apply the Greenhouse Gas Protocol's Corporate Accounting and Reporting Standard to develop GHG inventories. It emphasizes that inventories should drive emissions reductions and serve business imperatives, such as managing reputational and fiduciary risks. The brief suggests specific accounting approaches for investments, including equity share methods and the reporting of relevant indirect emissions.

• Financial institutions are seeking specific clarification on how to apply GHG inventory standards due to the complex and service-oriented nature of the financial sector, despite the broad applicability of the Greenhouse Gas Protocol.
• To achieve environmental and business goals, financial institutions should focus on setting GHG reduction targets and tracking progress, while using inventories to manage reputational risks and inform risk management for proprietary and managed investments.
• Because emissions from investments and services can represent a significant portion of a financial institution's GHG inventory and business risk, the brief suggests using an equity share approach for proprietary investments and reporting relevant indirect emissions for debt, equity, and other financial contracts.

APA

World Resources Institute (n.d.). Accounting for Risk. https://www.wri.org/research/accounting-risk

Chicago

World Resources Institute. Accounting for Risk. n.d. https://www.wri.org/research/accounting-risk.

Wikipedia

{{cite report |author=World Resources Institute |title=Accounting for Risk |url=https://www.wri.org/research/accounting-risk |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendaccounting, author = {{World Resources Institute}}, title = {{Accounting for Risk}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/accounting-risk}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }