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Responsible Investor: Why accounting really matters for climate change, and what you need to know about it


David Pitt-Watson, Research Fellow at Cambridge Judge Business School, writes about a new accounting approach which is compatible with climate sustainability. “Investors have been clear that they want the companies they own to commit to a business model which is compatible with climate sustainability,” he writes. “The acid test of that commitment is shown in the company accounts, and in how they calculate their profitability. We have the opportunity to insist that that is done in a way which is consistent with the Paris Agreement.”

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