Green Credits Accounting Plan Nears Final Steps After Board Vote

Companies are set to receive greater clarity on how to account for the value and costs of environmental credits they use to reduce their carbon footprints or meet regulatory requirements.

All but one member of the Financial Accounting Standards Board voted Wednesday to finalize an effort to standardize how companies report carbon offsets and renewable energy certificates. The forthcoming update aims to provide guidance on how to measure, present, and disclose information related to environmental credits.

Businesses have increasingly used credits and offsets to blunt the impact of their emissions. However, the current accounting rulebook doesn’t provide specific guidance on ...