The manager of Gladstone Ltd is not convinced of the scientific evidence behind climate change, and does not consider it necessary to adopt changes in the company’s operations which would decrease its greenhouse gas emissions. Gladstone Ltd’s accountant, however, has argued that if the company does not try to decrease its greenhouse gas emissions, the company’s carbon footprint will begin to appear on its statement of financial position with the introduction of a carbon emissions trading scheme.

Required 

Explain what the accountant means by a ‘carbon footprint appearing on the statement of financial position’, and whether this ‘footprint’ would be visible to investors.