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.
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
Partner, Audit and Advisory
KPMG Crown Dependencies
Director, ESG Reporting & Assurance
KPMG Crown Dependencies
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