Launch Of KPMG's 'Clear On Climate Reporting' Hub

(MENAFN- 3BL) July 10, 2024 /3BL/ - Climate change is driving broader stakeholder scrutiny of financial reporting, with regulators, investors and the public focusing on how companies report on climate-related matters - such as net-zero commitments. And they are demanding clarity about climate.

That's why KPMG has launched its Clear on climate reporting hub to provide insights and guidance to help organisations and their stakeholders understand how to be clear on climate in corporate reporting.

Covering key reporting issues companies are facing - through FAQs, podcasts and videos - it's the first place companies should go when considering how to clearly explain to investors and stakeholders the financial implications of climate-related matters. The resources will constantly grow and be regularly refreshed - for example, a whole new emissions section will be added soon.

Larry Bradley, Global Head of Audit, KPMG International said: “What's described in the front of the annual report won't always be mirrored in the financial statements in the way users expect. This is often true for climate. It is important that companies both comply with the IFRS® Accounting Standards and connect the dots between financial and non-financial information.”

Most, if not all, companies are facing risks arising from the physical effects of climate change and the transition to a lower-carbon economy. They should consider whether these matters are material to the financial statements and ensure users can understand the impact of climate. There is no single standard that addresses everything and there are a lot of bases to cover to get the accounting right. The essential question for companies is: would an investor make a different decision if a piece of information were included?

Ultimately, investors and regulators want to see clarity and connectivity between a company's financial and sustainability performance. A lot is happening in the corporate reporting space and companies are at varying stages in their sustainability reporting journey. But one of the first jobs is for companies to address climate in their financial statements today and ensure they're complying with the relevant requirements and are clear about the policies applied and judgements made. They should also join the dots to connect all climate-related information in their corporate reporting.

Brian O'Donovan, Global IFRS and Corporate Reporting Leader, KPMG International, added: “Essentially, companies need to tell investors what the financial implications of their climate-related plans are; and if they believe there's no financial impact, tell investors why. Investors are looking for a connected picture of performance, showing the financial implications of sustainability plans and actions.”

The Clear on Climate Reporting Hub can be accessed by clicking the link below:

Click here to visit the Clear on Climate Reporting Hub

Notes to editors:

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About KPMG International

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services.“KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.

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