Climate risk and financial statement impacts

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Climate risk and financial statement impacts

What should you consider for the 2020 reporting season?

Investors are asking the question: Have you considered how climate risk affects your financial statements?

2020 has to date been a challenging year for many Australian companies. Just as businesses are still recovering from the impact of droughts and the prolonged bushfire season, they must now deal with the impact of the COVID-19 pandemic.

The impacts of COVID-19 are similar to the potential impacts from climate change events. For example, impacts on supply and demand driving operating costs and pricing of commodities, effects on employees, disruption to supply chain and stranded assets.

Over the last few years there has been an increased awareness of climate risks, but the current crisis will intensify this focus on the potential financial impact. What we understand now more than ever is how a global crisis can quickly become an economic crisis, and how this might impact our businesses locally.

Investors are asking the question: Have you considered how climate risk affects your financial statements?

This report considers the actions companies need to take during the 2020 reporting season and beyond.

Published: July 2020

Climate risk and financial statement impacts
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