The role of accounting in supporting adaptation to
climate change
Martina K. Linnenluecke, Jacqueline Birt and Andrew Griffiths
UQ Business School, The University of Queensland, St Lucia, QLD, Australia
Abstract
The study is one of the first concerned with the topic of accounting and climate
change adaptation. It proposes that the accounting role can support organ-
isational climate change adaptation by performing the following functions: (i) a
risk assessment function (assessing vulnerability and adaptive capacity), (ii) a
valuation function (valuing adaptation costs and benefits) and (iii) a disclosure
function (disclosure of risk associated with climate change impacts). This study
synthesises and expands on existing research and practice in environmental
accounting and sets the scene for future research and practice in the emerging
area of accounting for climate risk.
Key words: Accounting; Adaptation; Climate change
JEL classification: M14, M41
doi: 10.1111/acfi.12120
Introduction
The recently released 5th Assessment Report of the Intergovernmental
Panel on Climate Change (IPCC) has sent a clear message: Human
interference with the climate system is occurring, and climate change poses
severe risks for human and natural systems. Many impacts are already
observable. The atmosphere and ocean have markedly warmed since the
1950s, the amounts of ice and snow have diminished, sea level has risen, and
the concentrations of greenhouse gases have increased (IPCC, 2014). The
scientific evidence points to the need to respond to the threats posed by
climate change across businesses, industry and society (Linnenluecke and
Griffiths, 2010; Surminski, 2013), and to adapt to those changes that will
occur even if greenhouse gas emissions were stopped immediately. Adapta-
tion to climate change can be defined as ‘the process of adjustment to actual
Received 28 January 2015; accepted 5 March 2015 by Kathy Walsh (Editor).
© 2015 AFAANZ
Accounting and Finance