Global accounting body wants more rigour in showing climate impacts
By Huw Jones
LONDON, July 31 (Reuters) -A global accounting body on Wednesday proposed guidance on how companies can do more to show the impact of climate change on their financial performance, saying standalone disclosures do not give investors the clarity they need.
Norms written by the International Accounting Standards Board (IASB) are applied by listed companies in more than 140 jurisdictions, including the European Union, Canada, Japan and Britain, though the United States has its own rules.
The IASB launched a consultation on Wednesday on proposed guidance for companies to apply the board's existing rules for reporting climate change impacts or other uncertainties in their financial statements.
Regulators have already begun to roll out sustainability disclosures for listed companies, but these are published outside financial statements and audited less rigorously.
The examples aim to show investors how such sustainability disclosures, such as net-zero carbon emissions commitments and plans on how to transition to them, impact a company's financial figures on assets, liabilities, income and expenses.
Investors have said they want to know whether assets will retain their value going forward as climate change impairs them, such as through flood damage.
"They expressed concerns that information about climate-related uncertainties in financial statements was sometimes insufficient or appeared to be inconsistent with information provided outside the financial statements," the IASB said in a statement.
Oil and gas companies already reflect the impact of climate change in notes attached to their financial statements.
Reporting by Huw Jones;
Editing by Helen Popper
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
