Climate change | Financial reporting

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.

• 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?

• 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?
• Video | Do contracts between customers and wind farm operators contain leases?

• Lessors – How will climate-related risks impact operating and finance leases?
• What's the impact on expected credit losses?
• Do green loans meet the SPPI criterion?

• What’s the impact on the going concern assessment and related disclosures?
• Have you disclosed the impacts of climate-related matters clearly?
  

• Banks' climate-related disclosures
• Insurers' climate-related disclosures