Clear on climate 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.

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 Sustainability reporting pages.

• 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?

• 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?

• Classification of financial assets
• Lessors – How will climate-related risks impact operating and finance leases?
• What's the impact on expected credit losses?

• Contracts for renewable electricity
  
• 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