The Alignment of Global Equity and Corporate Bonds Markets with the Paris Agreement: A New Accounting Framework

To comply with the adopted Paris Agreement, global finance flows must be measured against climate scenarios consistent with possible pathways towards limiting global warming to 2°C or less.

For this, there must be proven and accepted accounting principles for assessing financial plans of climate relevant actors against climate models. As there are a variety of data sources describing the financial plans of relevant actors, these principles must accommodate a variety of reported information, while still yielding relevant metrics to different stakeholders. The paper aims to discuss these issues.

This article was published in the Journal of Applied Accounting Research, Vol. 20 No. 4, 2019.