Deep Linking Financial and Energy Accounting

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How can we ensure financial and energy accounting and disclosures of organizations reconcile at a fundemental level? At the macro / statistical level we have environmentally extended input-output frameworks that connect the dots between sectors and help trace benefits and responsibility across the economy. In a new white paper we explore how we can achieve a rigorous linkage of energy flows to monetary flows from an individual accounting entity perspective.

The proposed integrated accounting framework imposes on energy related non-financial disclosures the same double-entry balance constraints that apply to conventional financial accounting and statements. We identify the key ingredients required for a rigorous multidimensional accounting framework in terms of concepts, postulates and design choices, and we illustrate these ideas with a worked-out example of linking financial and energy accounts.

Project phase

White Paper

What is the goal of the project?

Sketch a rigorous framework for sustainability accounting at the individual entity level

Who initiated the project and which organizations are involved?

Open Risk

What is the next step?

Pilot implementation in equinox https://github.com/open-risk/equinox our open source platform that supports the holistic risk management of sustainable finance projects

https://www.openriskmanagement.com/deep-linking-financial-and-energy-accounting/

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