How might climate-related risks impact the financial statements?

  • All companies are facing climate-related risks and opportunities and are making strategic decisions in response. Many are starting their transition to a low carbon economy and are making these strategic decisions now.
  • The impacts of climate-related risks on the financial statements are broad, potentially complex and will depend on the industry specific risks.
  • The ten questions below can be used as a starting point to assess the impact on your financial statements.

01

Has your company made a net zero commitment?

02

Does your company have polluting assets?

03

Is your company exposed to carbon-related regulation?

04

What about your inventory and production costs?

05

Does your company take part in an emissions scheme?

06

Does your company borrow funds?

07

Is your company a provider of finance?

08

What about staff benefits?

09

What about your cash flow forecasts?

10

What about your disclosures?