KPMG Board Governance Forum: Climate reporting in the financial statements

KPMG Indonesia's Board Governance Forum (BGF) hosted BGF breakfast session on 14 November 2024 at KPMG new Collaboration Room on the 34^th Floor Jakarta Mori tower. KPMG distinguished speakers talked about the main topic of discussion "Climate reporting in the financial statements”. This inter-active session was attended by 55 attendees comprising audit committee members, independence commissioners, heads of corporate reporting, C-level executives and ESG specialists from the publicly listed entities and banks.

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 the company 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 in your financial statements?

As a reminder of what was discussed, we are pleased to share the key takeaways from the event, as follows:

• Do the accounting right. As long as we live on Earth, the climate-related matters will affect us all, including our businesses. An in-depth analysis is necessary to spot their impacts, either to the reported numbers or to the financial statements' disclosures. It's now time for businesses to be clear in reporting climate-related matters in the financial statements.

• Tell the story right. In all material respects, share with the world how climate change affects your business, either in the financial statements or in your annual reports. A coherent and consistent story is imperative in bringing confidence to the way you report your operations and performance results.

• Find the right people. It goes without saying, but having the right minds putting the right effort in the right direction is a must. A person may spark change, but a team is needed to move a mountain. This teamwork should span from top executives to the ground crew.

Partner, Audit & Assurance
KPMG Indonesia 

Indra is a partner in Audit & Assurance services and the Head of Department of Professional Practice for KPMG Indonesia. He has experience in providing audit and other assurance services to consumer and industrial products, pharmaceutical, and telecommunication clients. Indra is currently the Chairman of Indonesian Financial Accounting Standards Board – Institute of Indonesia Chartered Accountants (DSAK-IAI). As part of his role, he is also actively involved in international forums of accounting standard setters.