Although momentum on initiating a U.S. cap-and-trade system to reduce greenhouse gas emissions has slowed, the first step in the process–a mandate to report greenhouse gases–kicks in this year. Deloitte & Touche's Stephen Engler, who leads carbon management services in the firm's climate change practice, outlines some of the forces in play and what this means for companies.

As North American greenhouse gas (GHG) markets continue to develop, CFOs and senior finance executives will play a key role in managing and mitigating GHG risk and exposure. While much of this activity falls under the auspices of risk management, there are many business opportunities to be realized through strategic GHG management as the visibility and importance of non-financial reporting increases in the eyes of investors, consumers, employees and business partners.

The CFO can and should be a driver of many strategic decisions as reporting on sustainability performance, climate-change risk and greenhouse gases matures from a siloed perspective to an enterprise-wide approach. Organizations large and small will need to view non-financial reporting with the same rigor, controls and processes in place as financial reporting to ensure consistent, accurate and auditable reporting. The CFO and the finance function are well-positioned to shape and drive pending and current non-financial reporting requirements.