The Climate Adaptation Summit (CAS 2021) sought to tackle head on, the imminent catastrophe, which, the unattended climate change can unleash on the world. This is perceived to be more disastrous than the COVID-19 pandemic. So far accountants have not agreed on how to quantify damages caused to the environment by a company’s operations in the accounts unless they come in the form of a fine.
Required:
Identify and explain FOUR (4) consequences of environmentally unfriendly practices of corporate entities that may negatively influence their profits. (5 marks)
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- Fines imposed when pollution levels are exceeded.
- Lawsuits for breaching emission levels
- Environmental taxes
- Loss of customers
- Damaged corporate reputation
- Reduced land value
- Inability to attract expertise; professionals who are against environmental pollution may decline the appointment.
- Inability to attract funding from potential investors.
(Any four points @ 1.5 marks each = 5 marks)