We discuss what carbon offsets and RECs are, how to account for them, and how they are addressed in the SEC's climate proposal
In this episode, Heather Horn was joined by Rich Goode from PwC's ESG practice and Jillian Pearce from PwC's National Office to focus on the accounting and reporting for carbon offsets and renewable energy credits (RECs), including how they’re addressed in the SEC’s climate disclosure proposal.
In this episode, you will hear:
  • 1:49 - An overview of RECs and carbon offsets
  • 7:37 - What is renewable energy?
  • 8:49 - Rich’s RSIO framework - reduce, switch, innovate, offset
  • 11:56 - A refresher on scope 1, 2, and 3 greenhouse gasses in the GHG Protocol and how RECs and carbon offsets can be used to offset them
  • 14:49 - RECs and carbon offsets in the SEC climate disclosure proposal
  • 23:12 - Accounting for RECs and carbon offsets
  • 34:27 - Why companies using only RECs and carbon offsets may be missing out
  • 36:58 - Final advice for companies on use of offsets and RECs

Want to learn more? Read our publication Accounting for your company’s zero-carbon future. And listen to our previous podcasts where we deep dive into GHG scope 1, scope 2, and scope 3.
About our guests
Rich Goode is a principal in PwC's ESG practice where he assists clients in the technology, media, and telecommunications sectors navigate key environmental, social, and governance issues. Leveraging 30 years of experience, Rich also currently serves as an Adjunct Lecturer at Harvard University.
Jillian Pearce is a Partner in PwC's National Office, providing advice on financial instruments and other technical accounting issues to power and utilities clients. She was a Professional Accounting Fellow in the Office of the Chief Accountant at the SEC, and has over 15 years of auditing experience.
About our host
Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.
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