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Global IFRS Institute     |    Sustainability reporting

Climate-related risks have financial statement impacts

   

All companies are facing climate-related risks and opportunities and are making strategic decisions in response – including around their transition to a low-carbon economy.

These climate-related risks and strategic decisions could impact their financial statements – and KPIs.

Our climate change resource centre provides FAQs to help you identify the potential financial statement impacts for your business. If you sit on an audit committee, you can also use our 10 questions for audit committees (PDF 2.2 MB) as a starting point for your impact assessment.

And the blogs and podcasts explore the issues further – including by sector.

You can also keep up to date with the development of the new IFRS® Sustainability Disclosure Standards on our Sustainability reporting pages.

Do you have polluting assets?

Are your financial instruments exposed to climate-related risks?

Do you have a carbon-related customer or product base?

Are you required to purchase emissions credits?

Are you exposed to carbon-related regulation?

Have you made a net-zero commitment?

All companies are facing climate-related risks and opportunities

And are making strategic decisions in response

These climate-related risks and strategic decisions could impact their financial statements – and KPIs

The decisions you make now could affect your assets and liabilities

You may need new financing or even a capital injection to fund the transition to new strategies

And, even if you think climate risk has minimal financial statement impact for your company today, this may change quickly as a result of regulation, strategic decisions or shifts in climate patterns

Investors and regulators are demanding higher-quality information on how companies are managing the risks and the impact on a company’s long-term prospects

Consider how to provide clear financial statement disclosures of significant judgements and estimates that could be materially impacted by climate-related risk

Some common issues and the potential impacts on financial statements

KPMG professionals are here to help

The KPMG climate change resource centre provides
FAQs to help you identify the potential financial
statement impacts for your business

And the blogs and podcasts explore the issues further – including by sector

 

 

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