CDSB welcomes the letter by investor groups yesterday confirming the view that “climate-related risks are considered a material factor and thus should be reflected appropriately in financial statements.”
CDSB welcomes the letter by investor groups
yesterday confirming the view that “climate-related risks are
considered a material factor and thus should be reflected appropriately
in financial statements.”
CDSB was born at the World
Economic Forum meeting in Davos in 2007 with the establishment of a new
international consortium of business and environmental NGOs to create a
generally accepted framework for climate risk reporting by corporations –
to account for tomorrow’s climate.
The publication of the TCFD
recommendations in recent years has seen an increase in the reporting of
climate-related matters in mainstream annual reports, this is
encouraging progress. However, thus far the focus has been on building
sustainable business narratives, with a lack of climate-related matters
embedded into company financial statements, resulting in a disconnect
between narrative and financial reporting.
The IASB paper
published in November 2019 confirmed that under current IFRS standards
an assessment of climate-related risks should be incorporated into
preparation of financial statements and how this should be done.
Preparers should now be aware of
the expectations set by investors when it comes to inclusion of
climate-related matters within financial reporting and the IASB paper
clarifies what is possible within the scope of the IFRS accounting
standards as they are written.
The CDSB has set up a Climate
Accounting Standards Group tasked with developing the practice guidance
and examples to support preparers who are starting out in integrating
climate-related matters within the financial statements, to be published
later this year.
letter by investor groups
CDSB
© CDSB
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article