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Inconsistency has been the annual or CR report when it comes to carbon information. 1 out of 5 large companies does not provide any report on carbon. As per KPMG, it is important that the necessary and relevant information be provided so that the stakeholders are able to get a clear view. Reporting should lead to explain that the companies evaluate and assess the carbon emission. The biggest and crucial role is being played by the large companies and as per KPMG report, the large companies are in a better position to respond to the low-carbon global economy. The carbon reporting methodology has been assessed through a scoring methodology (KMPG, 2015). As per the methodology, the CR reporting is based on 7 criteria that are the stakeholder engagement, materiality, risk planning, indicators, transparency and balance, value chain, and corporate responsibility governance.
However, the improvement in the process of reporting has been timid considering the room for improvement. KMPG member firms influence companies to assess the reporting pattern and provide steps that will help in enhancing the quality. In short, the quality of reporting is a method to differentiate them from the rest. Going by the overall discussion it can be commented that Global Reporting initiative can be tagged as the best voluntary reporting guideline (Albuquerque, 2013). The use of the framework is strong where the CR reports are stand-alone. CR information is exposed to a limited space and hence, relevant principles must be made mandatory within the annual report so that ample benefit can be derived from it.
Albuquerque, R. D. A. K. Y., 2013. Corporate Social Responsibility and firm risk theory and empirical evidence. s.l.:Boston University.
KMPG, 2015. The KMPG Survey of Corporate Responsibility Reporting , Netherlands
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