KPMG Launches New Climate Reporting Resources Hub

Global professional services firm KPMG announced today the launch of Clear on Climate Reporting, a new digital hub aimed at helping companies provide reporting to investors and regulators on the financial implications of climate-related risks and opportunities on their businesses.

According to KPMG, the new hub is being launched as companies are seeing greater climate change-drive broader stakeholder scrutiny of financial reporting, particularly with many companies facing growing risks from the physical effects of climate change and the transition to a lower-carbon economy. The firm added that while companies need to consider whether these climate-related matters are material to their financial statements, “there is no single standard that addresses everything and there are a lot of bases to cover to get the accounting right

“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.”

According to KPMG, at launch, the new hub provides a series of resources covering key climate-related reporting issues for companies, including FAQs to help identify the potential financial statement impacts for businesses, as well as podcasts and videos to explore issues in more depth, including by sector, with more resources, including a new emissions section, to be added in the future.

Among the topics covered on the hub include recognizing liabilities related to net zero commitments, accounting for emissions schemes, ESG measures in executive pay packages, considerations for companies when purchasing carbon credits, and accounting for different forms of government assistance, among others.

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.”