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Home » KPMG Launches Clear on Climate Reporting Hub 

KPMG Launches Clear on Climate Reporting Hub 

by Madaline Dunn

KPMG has announced the launch of a new hub aimed at providing organisations and their stakeholders with the tools to be “clear” on climate in corporate reporting.

The ‘Clear on Climate Reporting Hub,’ it said, includes FAQs, podcasts and videos and is being launched against a backdrop of growing climate regulation and broader stakeholder scrutiny of financial reporting.

KPMG outlined that “most, if not all,” companies are facing risks arising from climate change and the transition to a lower-carbon economy and that they should consider whether these matters are material to the financial statements and ensure users can understand the impact of climate.

“What’s described in the front of the annual report won’t always be mirrored in the financial statements in the way users expect,” explained Larry Bradley, Global Head of Audit, KPMG International. “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.”

Indeed, KPMG notes that investors and regulators “want to see clarity and connectivity” between a company’s financial and sustainability performance. 

As such, topics covered in the hub include emissions schemes, liability in net-zero commitments, ESG measures in executive pay packages, accounting for emissions or ‘green’ schemes, and others. 

KPMG explained that while companies are at “varying stages” in their sustainability reporting journey, one of the first jobs is for companies to address climate in their financial statements, ensure compliance, and make sure they are clear about the “policies applied and judgements made.” 

“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,” said Brian O’Donovan Global IFRS and Corporate Reporting Leader, KPMG International.

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