A number of countries have introduced (or are considering the introduction of) regulatory reform over greenhouse gas emissions in an effort to curb the effects of climate change. These countries include Australia, South Africa, China, India, the United States and some European countries. For companies operating in the energy industries these proposed regulations may have a severe impact on their future operations. While in 2014 Australia withdrew its carbon tax, South Africa is planning to introduce a carbon tax in 2016 and carbon pricing is being considered in other jurisdictions. Accordingly, any breach of these regulations may lead to financial penalties and loss of reputation.
What internal control processes could companies (especially multinational companies) affected by these reforms put in place to minimise the risks associated with a breach?