Skip to content

ACCA Strategic Professional · Strategic Business Reporting (International) · Analysis and interpretation of financial and non-financial information and measurement of performance

Fenwick Group states in its integrated report that it is 'carbon neutral' based on purchasing offsets, but does not disclose that most emissions from its supply chain are excluded from the calculation. Which concern does this most directly illustrate?

This illustrates greenwashing. Claiming carbon neutrality while leaving out most supply-chain emissions creates a misleading impression, because the information is incomplete and does not faithfully represent the entity's real environmental performance.

  1. AGreenwashing, because the claim is misleading by omitting relevant informationCorrect
  2. BDouble materiality, because impacts on society are ignored
  3. CSegment reporting failure under IFRS 8
  4. DA change in accounting estimate under IAS 8

Explanation

Greenwashing arises when sustainability claims give a more favourable impression than reality, here by excluding most supply-chain emissions while claiming carbon neutrality. This undermines faithful representation and completeness of the information. IFRS 8 and IAS 8 concern segments and estimates, which are unrelated, and double materiality is a different concept.

Did you get it right without looking?

One question tells you little. A timed set on Analysis and interpretation of financial and non-financial information and measurement of performance shows your real accuracy, how long you take and where you lose marks.

Practise Analysis and interpretation of financial and non-financial information and measurement of performanceFree diagnostic mock

More Analysis and interpretation of financial and non-financial information and measurement of performance questions