Environmental or climate related risks have been identified by CEOs as the number one risk to future performance in KPMG’s Global CEO Survey for the last three years running, first appearing at the bottom end of the top five in 2018.
Having a well-articulated climate story is not merely a way of discharging an organisation’s regulatory obligations. It is fast becoming recognised as a driver of value for organisations, as well as providing some with greater access to capital.
Although discussion of an organisation’s climate response is becoming more of a standard feature in many Australian annual reports, there is still a great deal of variability in the form and level of detail provided in the front of the annual report, as well as a low level of visible flow through or linkage of this information to the financial statements.
Watch the webinar to listen to our team discuss:
- What information relating to an organisation’s climate response to include, and how to effectively incorporate this information into the front part of the annual report.
- The linkage of, and bridging the gap between, what is discussed in the front part of the annual report and the amounts recognised and disclosures in the financial statements and notes.
- How to enhance the integrity and reliability of the information and data for public scrutiny.
Tips for effective climate reporting in your annual report
Tell your climate response story applying the TCFD framework in the front of your annual report.
Ensure clear linkage between disclosures in the front to the financial statements, applying an overlay of materiality.
Bridge the expectation gap if assumptions and judgements appear to be inconsistent between the disclosures in the front and those in the financial statements.
Have your measurement and reporting processes established and tested.
Seek assurance over key metrics and consistency of disclosures early to enhance integrity and reliability.
Have you considered them?
If you would like further information, please contact your KPMG adviser or one of our KPMG team.
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Our Australian Financial Reporting Centre provides the resources you need to prepare relevant, compliant and useful financial reports.
The resources you need to prepare relevant, compliant and useful financial reports.