UNCTAD urges stronger action to help least developed nations tap into carbon markets
The United Nations Trade and Development (UNCTAD) urged during the 29th United Nations Climate Change ...
KPMG’s “Clear on climate reporting hub” enhances companies’ transition to lower-carbon economy
KPMG has launched its Clear on climate reporting hub to provide insights and guidance to help organizations and their stakeholders understand how to be clear on climate in corporate reporting.
Climate change is driving broader stakeholder scrutiny of financial reporting, with regulators, investors and the public focusing on how companies report on climate-related matters — such as net-zero commitments. And they are demanding clarity about climate.
Covering key reporting issues companies are facing — through FAQs, podcasts and videos — it’s the first place companies should go when considering how to clearly explain to investors and stakeholders the financial implications of climate-related matters. The resources will constantly grow and be regularly refreshed — for example, a whole new emissions section will be added soon.
“What’s described in the front of the annual report won’t always be mirrored in the financial statements in the way users expect. This is often true for climate. It is important that companies both comply with the IFRS® Accounting Standards and connect the dots between financial and non-financial information,” said Larry Bradley Global Head of Audit, KPMG International.
Most, if not all, companies are facing risks arising from the physical effects of climate change and the transition to a lower-carbon economy. They should consider whether these matters are material to the financial statements and ensure users can understand the impact of climate. There is no single standard that addresses everything and there are a lot of bases to cover to get the accounting right.
Ultimately, investors and regulators want to see clarity and connectivity between a company’s financial and sustainability performance. A lot is happening in the corporate reporting space and companies are at varying stages in their sustainability reporting journey. But one of the first jobs is for companies to address climate in their financial statements today and ensure they’re complying with the relevant requirements and are clear about the policies applied and judgements made.
They should also join the dots to connect all climate-related information in their corporate reporting.
“Essentially, companies need to tell investors what the financial implications of their climate-related plans are; and if they believe there’s no financial impact, tell investors why. Investors are looking for a connected picture of performance, showing the financial implications of sustainability plans and actions,” said Brian O’Donovan, Global IFRS and Corporate Reporting Leader, KPMG International.
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