Deloitte, ICAEW launch climate change reporting programme
Big Four firm Deloitte and ICAEW have teamed up to launch a learning programme which aims to build climate change awareness and the role of business, with an emphasis on financial statement reporting
17 Jun 2019
The joint initiative calls for businesses to take action now and central to the initiative is a dedicated climate change website, hosted by Deloitte, with videos and documentation to help company reporters understand how to incorporate climate change issues and disclosures into their financial statements.
The learning modules cover a range of topics including scenario analysis, narrative reporting and the annual report, strategy and risk assessment and financial statement impact.
There are also a series of interviews on the topic and links to significant documents and useful websites, including the recommendations from the Financial Stability Board's taskforce on climate-related financial disclosures (TCFD) and ICAEW resources on climate change. All material will be free to access, regardless of ICAEW membership.
The video learning resources include modules on the impact of climate change on business, and how to manage risks created by climate change.
A key feature of the programme is to highlight reporting issues for preparers of financial statements and how to translate climate change effects into tangible measurements.
Veronica Poole, Deloitte NSE head of accounting and corporate reporting, said: ‘Climate change is an existential threat that demands urgent attention; there can be no more “business as usual” if companies are to protect their value, manage risks and future-proof their organisations.
‘Climate change is likely to drive some of the most profound changes to businesses in our lifetimes. Impacts on products and services, supply chains, loss of asset values and market dislocation are not only being caused by more frequent and severe climate-related events, but also by the accelerating pace of policy and regulatory change.
‘Our programme sets out the business case for action and practical steps for change, with the principal goal to help companies place their climate change response as a key element of their business models.’
Nigel Sleigh-Johnson, head of financial reporting at ICAEW, said: ‘The downgrading of credit ratings and even bankruptcy, as a result of extreme weather patterns, are already real outcomes for some companies. For business to adapt successfully to these impacts will require systematic change, and this cannot be achieved without understanding and involvement on the part of finance professionals.’