(2 February 2024 – Australia) More than 1 in 3 enterprises globally are now disclosing climate-related risks in their financial statements according to Chartered Accountants ANZ (CA ANZ).
The proportion of companies in Australia, New Zealand and globally making financial statement disclosures on climate risk has seen an unprecedented increase since 2021 CA ANZ reports, stabilising in 2023 at around a third of companies.
The Australian Commonwealth Treasury’s final policy statement on mandatory climate-related disclosures and draft legislation for consultation was released last month and is poised to add disclosure requirements over and above existing financial reporting requirements.
The federal government revealed in January its plans to require companies with revenues of A$500m and above to report climate related matters from 1 July 2024. Companies with a turnover of A$200m will start reporting in 2026, and those with A$50m in 2027.
“Climate risks are impacting companies’ disclosures concerning asset valuations, impairment testing, financial risks, and provisions,” said Chartered Accountants ANZ’s Reporting and Assurance Leader, Amir Ghandar.
“As you would expect, emissions intensive industry sectors such as energy and utilities have a larger proportion of companies impacted, but we’re also seeing sectors such as consumer staples and financials calling out climate risks as a key financial consideration,” Mr Ghandar said.