The Greenhouse Gas Reporting Program - 1355 Words

Businesses in recent times are interested in being sustainable. They want to reduce their impact on the environment, but still continue to operate and fulfill their obligations to their stockholders by making a profit. Prior to the current trend of environmental interest, certain industries had negatively affected the environment in the course of doing normal business. As a result, governments have enacted laws that limited the amount of pollution that a firm can release. One such law is the Greenhouse Gas Reporting Program, which in a nutshell, stipulates mandatory reporting of greenhouse gases released by certain firms. In regards to the program, what is it, and what is its purpose? How does this program relate to accounting, and†¦show more content†¦The data will be used to help create laws and policies that further protect the environment against additional degradation. What are greenhouse gases, and why does this program focus on them, instead of other pollutants ? According to an article, greenhouse gases absorb infrared radiation. This absorption of heat in the atmosphere over time is responsible in the increase in the overall temperature of the planet, and this is known as the â€Å"greenhouse effect† (Lallanilla, 2015). Basically, this program focuses more on greenhouse gases and other air pollutants, because the effects associated with the greenhouse effect will negatively affect the air quality and atmosphere of the entire planet, not just in the United States. Overall, this program is meant to get companies to be mindful of their environmental impact for the sake of the planet, and to promote sustainability. How exactly does this program relate to accounting? This program is meant to promote sustainability and get firms to watch their environmental impact. In its June of 2015 report, the AICPA cites the trend of sustainable operations and states that â€Å"CPAs are well positioned to offer expertise that organizations can use to implement, track, and verify their sustainability efforts.† (The State of, 2015). In order for a firm to commit to sustainable operations, they must make changes in the way that