Explore the low-carbon economy, the importance of financial management reform

Paper Keywords low-carbon economy information disclosure of financial management reform
Abstract Research how traditional financial management to achieve maximum business value, low-carbon economy, changes in corporate financial activities coming this paper through the financial management objectives and significance of the depth of low-carbon economy, the importance of financial management reform.


Carbon financial management task is to make business operations through management of capital to both meet the needs of consumers and the community, but also to create maximum value for the purpose of business by the former financial management, financial management and low carbon comparison, we can further understanding of the financial management of low carbon content.

First, the significance of financial management and new targets
1. The significance of the financial management of low-carbon
(A relationship between accounting and financial management requirements
Accounting and financial management are two different disciplines, are independent of each other, but they both are inextricably linked. Effective financial management must rely on information provided by the accounting, financial management depends on all aspects of accounting information due to accounting and financial management areas of Research are the value of sports, which determines their existence in the theory and methods of mutual absorption, the relationship of mutual penetration and therefore, the current generation of low carbon accounting and financial management of the development of a necessary requirement for low-carbon corresponding.

(2 a necessary requirement for sustainable development of enterprises
Enterprises to carry out carbon management must implement the financial management of low-carbon, so as to effectively dispatch money, and right now business is mainly caused by pollution control squarely in the sights and then arranges financing, interim financing and then by a fine not carried out due to the overall environmental awareness funding arrangements, which can easily lead to business cash flow problems and trouble. Therefore, companies want access to markets, access to social support, only the application of low-carbon products of financial management theory to analyze the costs and profits, in order to enable enterprises to survive and develop.

2. Financial management of the new target
Economic situation is different, there are also differences in the financial management objectives, but in the past financial management of various objectives have a common characteristic, that is, environmental responsibility and environmental risks as exogenous variables on the financial management objectives and financial management activities impact the environment associated with problem is classified as part of corporate social responsibility, but in low-carbon age, and low-carbon, environmentally friendly, energy-related elements will be internalized in many enterprise management and supply chain management, the whole process of the products carbon footprint measurement, corporate carbon Carbon disclosure of assets and liabilities will be enforceable through the legal system in this case, the value of ecological value will become the ultimate expression of the highest standard and so-called ecological value, that is, carbon-carbon risk and responsibility of internalization, the enterprise and its created by various stakeholder groups the final value of the ecological value of business for the mathematical expression: the ecological value of traditional enterprise value + = - environmental value when companies implement energy conservation and other environment-friendly production and marketing methods, the environmental value is positive value, companies will increase the final value, whereas, when companies engage in high-energy, high-emission-type activities such as environmental damage, environmental value is negative, the company will reduce the final value. to maximize the ecological value of this objective requires that financial management staff must form a low-carbon thinking, with a low-carbon thinking into account the survival and competitiveness issues, including how to respond to future carbon emissions and more stringent environmental policies and regulations, how to deal with future low-carbon standard within the industry and how consumers respond to future low-carbon products and services tend to buy.

Second, the new challenges of financial management
Gave birth to a low carbon economy is both energy saving and clean energy business opportunities, but also, brings new challenges: carbon risk. "Carbon" standards, once implemented, not only increase production costs and weaken the competitiveness of certain products , a group of high pollution, high energy consumption enterprises will be eliminated. the face of low-carbon economy, multinational companies have been taking the lead and through a variety of ways to reduce their carbon emissions. Wal-Mart has asked its 10 million suppliers Goods must be completed and verified carbon footprint carbon label affixed, this will affect the world more than five million plants, most of them in China, which means that China's large enterprises must be verified carbon footprint, take responsibility for emissions reductions, or they will not get multinational orders from the national level, action to reduce greenhouse gas emissions in developed countries through the world economy and trade transmission mechanism, to affect related businesses in developing countries. in accordance with the EU carbon emissions trading mechanisms, all out of the EU since 2012 airport, airline, will be assigned to a certain quota of greenhouse gas emissions, total emissions below the limit of the airline can sell the remainder of the total emissions exceeding the limit must be part of their own money to buy out of this for China's aviation industry to say is undoubtedly a huge challenge.

Third, the new direction of corporate finance
Banking sector is also involved in low-carbon economy is an important subject, the future development of financial sector reform and the direction of the Equator Principles will be drawing on other international financial standards, based on the further implementation of the "carbon finance" policy, service and guide enterprises to reduce greenhouse gas emissions activities. to determine, assess and manage environmental risk in project financing and social risk will be the era of bank credit business of carbon finance is an important content. Currently there including Citibank, Standard Chartered, HSBC, Industrial Bank of China, including a number of financial institutions, announced a carbon finance reform, the loans and project financing in the emphasis on corporate environmental responsibility and social responsibility, to engage in energy conservation, science and technology innovation and environmental protection to provide credit support to enterprises and projects. In addition, financial institutions still in constant financial innovations, including the introduction of CDM project development consulting services, pre-project financing, remittances and capital management, carbon swaps, carbon Securities, carbon futures, carbon funds and other financial derivatives products such as carbon. The foreseeable future will focus on the flow of financial resources to actively develop a low carbon economy enterprises engaged in low-carbon economy, companies are more likely to be strategic investors. Links to free download http://www.hi138.com
Fourth, the new disclosure requirements
Existing financial reporting system provides only measured in money affect financial position, operating results and cash flows of information, and for corporate carbon emissions, environmental costs and performance, and environmental problems caused by the liabilities and potential risks are rarely disclosed the future, all this will change when carbon emission rights can be used to exchange, carbon assets and liabilities, the value of carbon is bound to be reflected in corporate balance sheet.

In the corporate income statement, which may be increased beyond the traditional cost of a new content, that mitigation costs. In accordance with the EU carbon emissions trading program requirements, in line with the EU Emissions Trading Directive requires companies were identified as sources enterprise, must mandatory emission reduction obligations by purchasing carbon credits to offset their own emission reduction targets obligations that constitute the sum of expenditure source enterprise cost reduction, direct offset current profits in low-carbon economy, emission reduction costs may be to high energy consumption enterprises an important part of the income statement.


References:
[1] Jing Wang Min, Wei Dong, Yue Jiedeng of China corporate social responsibility financial performance evaluation model for the Chinese population • Resources and Environment .2010.20 (2): 5.DOI: 10.3969/j.issn.1002-2104.2010.02.028.

[2] Shao Qing Chang. Characteristics of low-carbon economy and financial evaluation study. Business Accounting .2010 (13) Links to free download http://www.hi138.com