Investors and regulators need to understand how climate-related risks and opportunities have affected and will affect a company’s financial position and performance.
They expect a company’s financial statements and sustainability reporting to reflect the risks and opportunities it is facing and the strategic decisions it has made in transitioning to a low-carbon economy.
They also expect the different elements of a company’s reporting to provide a coherent, connected and integrated picture.
Are you clear on climate reporting?
Key stakeholder perspectives on why being clear on climate is important
Are you clear on climate reporting in the financial statements?
Get the accounting right
Determine the impacts of climate-related matters on your financial statements
Get the financial statement disclosures right
Provide relevant and transparent disclosures to enable investors to understand the financial statements
Don’t forget the overarching requirements of IAS 1 to provide information that could influence investors’ decisions
Tell a connected story
Provide a coherent, connected and integrated picture across your financial statements, management discussion and analysis (MD&A) and sustainability-related disclosures
Our Clear on climate reporting hub provides FAQs to help you identify the potential financial statement impacts for your business. Our blogs, podcasts and videos explore the issues further – including by sector.
You can also keep up to date with the development of the new IFRS® Sustainability Disclosure Standards on our ISSB Standards Today page.
- Net-zero commitments | When do you recognise a liability and how do you tell a connected story?
- Has your public net-zero statement resulted in a constructive obligation?
- Net-zero commitments | Impacts on financial reporting
- Climate-related commitments
- Climate-related risks | Financial reporting impacts
- Climate change and your financial statements
- Uncertainty in financial reporting
- Climate change and impairment
- The impact of climate-related matters on impairment testing of non-current assets | Your questions answered
- What’s the impact on the discount rate used in testing non-current assets for impairment?
- What might a company that purchases carbon credits voluntarily need to consider?
- What’s the impact on useful lives and residual values of PP&E and intangible assets?
- What’s the impact on cash flow projections used for impairment testing of non-financial assets?
- What are the potential impacts on inventories?
- Have you recorded all of your environmental and decommissioning obligations?
- How might employee benefit arrangements be affected by climate-related risks?
- What’s the impact on restructuring provisions?
Capital and finance for transition
- How do you account for different forms of government assistance?
- Do green bonds contain embedded derivatives?
- Do you have a lease of green technology?
- What are the potential impacts of leasing polluting assets?
- Do contracts between customers and wind farm operators contain leases?
Capital and finance for transition
- Classification of financial assets
- Lessors – How will climate-related risks impact operating and finance leases?
- What’s the impact on expected credit losses?
- Nature-dependent electricity contracts
- What’s the impact on the going concern assessment and related disclosures?
- Have you disclosed the impacts of climate-related matters clearly?
- Insurers’ sustainability-related disclosures
- Banks’ sustainability-related disclosures
More content
Aligning strategic, sustainability and financial information
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Our latest insights and guidance on IFRS Sustainability Disclosure Standards
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Our latest insights and guidance on European Sustainability Reporting Standards
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Be clear in your financial reporting
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