Preparing for the future of climate change disclosure
Investor and consumer expectations for quality information on climate change performance and regulatory reporting controls have resulted in disclosure becoming an essential element of carbon management. As a result, all publicly traded companies should be thinking about the timing of and the extent to which they disclose information about emissions, the impacts of climate change and their strategic, operational and financial implications. Companies need to determine the extent to which carbon regulation applies to their operation.
This article highlights the challenges and risks of climate change disclosure, which include how to determine the “materiality” of climate change and how to account for carbon assets and liabilities. It also details the elements of a comprehensive approach to climate change disclosure.