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Press Release | 14 July 2021

Accounting impacts of climate-related risks

Accounting impacts of climate-related risks

14 July 2021 – 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.

In recent years, many countries have seen dramatic shifts in the number of companies reporting on sustainability, driven not only by new laws and regulations but also by a growing understanding of the environmental, social and governance (ESG) issues which impact financial performance and corporate value. Sustainability reporting is now so nearly universally adopted, that the small minority of companies not yet reporting will find themselves seriously out of step with global norms.

Common issues and the potential impacts on financial statements

Even if climate-related risk may seem to have minimal financial statement impact for companies today, this may change quickly as a result of regulation, strategic decisions or shifts in climate patterns. And the decisions that companies make could affect their assets and liabilities, or they may need new financing or even a capital injection to fund the transition to new strategies.

To help companies with their financial reporting disclosures, KPMG recently launched the Climate change financial reporting resource center. It provides guidance to help companies consider how to provide clear financial statement disclosures of the significant judgements and estimates that could be materially impacted by climate-related risk.

Visit the Climate change financial reporting resource center.

 

Thai version: ความท้าทายจากการเปลี่ยนแปลงสภาพภูมิอากาศที่มีผลกระทบต่องบการเงิน

 

About KPMG

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. We operate in 146 countries and territories and in FY20 had close to 227,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

About KPMG in Thailand

KPMG in Thailand, with more than 2,000 professionals offering Audit and Assurance, Legal, Tax, and Advisory services, is a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

For media inquiries, please contact:

Ploi Phayakvichien
ploi@kpmg.co.th