Global professional services firm, KPMG, has announced the launch of Clear on Climate Reporting, a new digital hub designed to assist companies in reporting the financial implications of climate-related risks and opportunities to investors and regulators.
The introduction of this new hub comes at a time when companies are facing increasing scrutiny from broader stakeholders on financial reporting driven by climate change, according to ESG Today.
Many companies are experiencing heightened risks from the physical impacts of climate change and the transition to a lower-carbon economy.
The firm noted the complexity companies face in determining whether these climate-related matters are material to their financial statements, given the absence of a single comprehensive standard addressing all aspects.
Clear on Climate Reporting is set to be a comprehensive resource hub. The platform includes FAQs to help businesses identify potential financial statement impacts, as well as podcasts and videos that delve deeper into these issues, tailored by sector.
The hub aims to guide companies in recognising liabilities related to net zero commitments, accounting for emissions schemes, integrating ESG measures in executive pay packages, and considering the financial implications of purchasing carbon credits and different forms of government assistance.
The new hub’s initial resources cover key climate-related reporting issues, with plans to expand content in the future, including a new emissions section. This initiative underscores KPMG’s commitment to providing robust tools to help businesses align their financial reporting with climate-related risks and opportunities.
Brian O’Donovan, Global IFRS and Corporate Reporting Leader at KPMG International, commented, “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.”
Larry Bradley, Global Head of Audit, KPMG International, said, “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.”
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